Evening star., 1950-05-02
Nourse Says 'Scares
May Defeat Nation
In Battle Of BUDGET

1OFCA AAA4Che CNOAOkAAoI, "d4 ACO
the United States Chamber of
Commerce today that military
over spending caused by Soviet
"scares" could cost this country
the battle of the budget bulge"
This nation. the former head of
the Presidents Council of Eco
nomic Advisers declared. must bor-
row the historic retort Of Gen.
Anthony C. McAuliffe at Bastogne
and say nuts when an in
dustrially primitive and illiterate
country tries to bluff US
DR.. Nourse's speech, which op-
posed tax cuts at this time, was
one of three at a panel discussion
on the Federal budget. Others on
the panel were Senator Ferguson,
Republican, of Michigan a men,
ber OF the Senate Appropriations
Committee and Assistant Secre-
tary of Defense Marx Leva.
Panel Held on Cold War.
The panel, one Of five on vari-
Gus economic topics at luncheon
sessions in the second day of the
chambers 38th convention, fol-
lowed a morning meeting dealing
with winning the Cold War"
The Federal budget figured in
much of the morning discussion
but was treated in more detail by
DR.. Nourse. Forecasting 81 bill
lion deficit this year he declared:
"The battle of the budget bulge is
greater in its scope and menace
than the Bastogne break through
of World War H." The danger of
overspending in an armament
race, he said. is particularly
acute but could be leSsened if the
United States would not pile up
new outlays every time Joe Stain
throws a scare into u.s.
Senator Ferguson said deficit
spending can be stopped only if
Congress looks more closely into
money requests from executive
agencies and weighs more care
fully the possible long range re-
suits of every appropriation bill
provision.
Mr.. Leva reported the economy
program carried out this year by
the Defense Department has saved
almost SIG billion.
Vorys Urges Enforcement.
Stronger world government and
the enforcement of world law
were urged earlier by Representa-
tive Vorys, Republican, of Ohio,
as means Of winning the peace.
Speaking in the same panel dis
cussion, Economic Cooperation
Administrator Paul G. Hoffman
predicted Moscow controlled coun-
tries will throw off Soviet rule
when Western Europe is on its
feet.
He called for q full -fledged
miracle" during the remaining Is
months Of the European Recovery
Program. Europe, he said, must
form a single large market in
which "quantltative restrictions
on movement of goods, money
barriers to the flow of payments
and eventually all tariffs will be
permanently swept away"
Predicts Turbulence in Russia.
Mr.. Hoffman said a great Pc
riod OF turbulence" may occur in
Russia after the death of Marshal
Stain. He predicted that satellite
states will then begin to break
away and I'VE will see the crack
up of the most evil dictatorship
ever to dream of enslaving the
world"
Other panel speakers and the
courses they charted for winning
the peace were:
Eugene Holman. president of
the Standard Oil Co. of New Jer-
sey-Increase imports, not only
as a means of helping other
nations, but as a positive contribu-
ton to domestic prosperity. Win
ming the peace, he said, requires
industrial and financial strength
in the United States and high
levels of world production and
trade"
Walter Lippmann, columnist-
Pin down the Soviet military pow
er-prevent it from marching
by the deterrent power of our
long range striking force.
Two dinners were held last night
by organization members and their
associations, the American Trade
Association Executives and the
American Chamber of Commerce
Executives. The dinners were in
the Statler and the Mayflower
Hotels. Commerce Secretary
Sawyer told the delegates and
guests that the American public
must be reminded that its pros
perity depends on a profitable
and constantly growing business
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