Evening star., 1951-01-07
Sees Economic Advisers
Guilty Of Omissions
Writer Says Woste Continues
Despite National Crisis
By Fronk R. Kent

By Fronk R. Kent
Whenever the Presidents Council of
Economic Advisers" of which the ex-
ceedingly articulate Leon Keyserling is
the head, renders Gas it did few days
ago. one of it's annual reports, there are
three things upon which you can almost
always count. One is that it will be
very verbose: another that it will be more
than little vague; third that it will
omit all mention of certain salient and
basic facts.
These omissions constitute a fraud
upon the American people because they
withhold from them important informa-
tion without which they can form no
intelligent judgment of the Nations
financial affairs. And that is as true of
Mr.. Truman as Of the average American.
The most recent emanation of the coun-
Gil completely sustains these contentious.
1t also demonstrates why most recognized
economic authorities lack confidence in
the administrations conduct of fiscal af-
fairs.
Here are the councils chief omissions:
First, it omits to point out that it's pres
ent equivocal advocacy of wage and price
controls to combat imitation comes after
nearly six incalculably valuable months
have been lost. During that period the
council inexplicably Except on the
theory of placating the labor bosses)
evaded discussion of the subject. In that
period wages went on the rampage and
the cost Of living broke all records. In
that period more than SO billion were
automatically added to the cost of the
defense program. chiefly due to admin
1Stration inaction along wage-price con-
troll lines urged by Congress and for
which Mr.. Truman had been voted full
power. About rs per cent has been add
ed to the cost Of Government since July,
1850.
The other omission is even more sig
nif1cant. From the first of the reports
several thousand words to the last, the
words economy or saving do not occur.
From start to finish, it never once
touches upon the idea that the fiscal
soundness of our position in these days of
gigantic expenditures for defense could
be improved by sharply curtailing non
defense expenditures. Nor does 1t touch
upon the indisputable fact that we can
aid our Allies only so long as we our
ers OF the council have proclaimed its be-
lief that on-defense expenditures must
increase along with defense expenditures.
From no other sources has this doctrine
been advanced.
Mr.. Keyserling, 1t Is true, has only
indirectly proclaimed it. But though it
has been attributed to him a number
OF times. he has never denied it. In
the present report he does not put it
forward, but he most conspicuously does
not urge any reduction in non-defense
expenditures. And this, in face of
Senator Harry F. Byrds assertion that
at least ST billion can be eliminated
from governmental costs in the next
fiscal year without affecting a dollar
of the armament appropriations, for
all of which he has voted. "It is fright
ening." wrote Mr.. Byrd to Mr.. Truman,
Ito contemplate a continuation of
$25 billion deficits (according to Secre-
tary Snyders own figures) indefinitely.
I submit we should start at once reduc-
ing non-military expenses in excess Of
81 billion year"
Senator Byrd then proceeds to specify
how this could be done and very &C
curately asserting that Congress cannot
achieve this goal without White House
leadership appeals to Mr.. Truman to
supply that leadership. promising him
full support if he does This appears
not only an obviously sound proposal
but one that should appeal to every
rational person. 1t also should appeal
to Mr.. Truman and to his economic
adviser. Mr.. KeySerling-particula as
both Mr.. Truman and Mr.. Keyserling
advocate a balanced budget
Their advocacy, however, is so mild
as to be meaningless They apparently
are willing to take every step toward
budget balance except the one great
and indispensable step of reducing non
essential expenses. They are for higher
taxes but not for the really drastic
taxes to which the labor bosses are
opposed-such as the Federal sales tax.
Senator Byrd lays down blueprint by
which seven billions of governmental
waste can be eliminated and calls on
Mr.. Truman to lead the way. Mr..
Truman's answer to this appeal is an
irritated and rather silly press con-
ference comment that he does not be-
lieve Senator Byrd understands the
budget" If he understood the budget
half as we'll as Senator Byrd, the country
would be much better Off The policy Of
Mr.. Keyserlings council seems to be to
ignore the question of waste altogether,
to act as though there is no such thing
as waste.