Evening star., 1951-08-26
Historians to Emphasize
FinoncioI Imbecility
Writer BIomes People as Well
As Rulers for Wuste
BY Fronk R. Kent,

II and when the story of the present
era is calmly written it seems inevitable
that the impartial historian should
dwell most heavily upon the idiotic
fiscal policy which, in defiance Of rea-
son and experience. the American Gov
ernment fatuouSly pursued while pass
ing through It's greatest crisis.
This will indict not only its rulers
but the people Of the country as well
For, primarily it is the fault of these
that the Washington politicians have
been permitted to undermine the Fed
eral financial structure upon the
strength Of which depends our ability
to defend ourselves. The result is that
We now find ourselves in q situation
where thoughtful men feel our greatest
danger is from within rather than
without. The facts are too clear TO
admit Of argument. No one disputes
that expenditure Of uncounted billions
for armament not only must be accom-
panied by grievously heavy taxes but
makes essential the elimination of gov
ernmental waste and q rigid reduction
in all non-defense expenditures. Nothing
else makes sense.
With great solemnity, the President
frequently has proclaimed this. His
subordinates have echoed and re-echoed
his words. Every economist worthy of
the name has elaborated the theme.
Nearly all newspapers have warned of
the consequences Of failure to retrench
and reduce. Even the cheapest politi-
clans publicly advocate it, That public
sentiment is strongly for 1t is clear 1t
seems almost incredible that some
cfi1rdVy 10 Al;
waste and reduce the admittedly re-
duceaole non-defenSe expenditures
should not have been taken.
Yet. the devastating truth is that none
has. Chief responsibility for this shastly
failure rests upon Mr.. Truman. For, it is
automatic that no real curtailment of
expenditures or waste can be achieved
by Congress without White House lead
ership Instead Of providing that leader
ship the Truman weight has been used
to Illustrate congressional attempts at
reduction, Publicly he has urged his
heads Of bureaus and departments to
cut down non-defense expenditures, but
privately he has permitted them to
classify almost every activity as linked
with defense.
In addition, as Senator O'Conor Of
Maryland recently pointed out, he is
urging in his current budget hundreds
Of millions of dollars for Fair Deal"
projects and proposals that are not re-
motely connected with defense. Instead
OF supporting the two most sincere
Democratic enemies of waste in Con-
gress-Senator Byrd and Senator Doug
las-he is bitterly hostile to both. And
IN House and Senate there are scores
OF China egg statesmen willing to cur
tail anything that does not affect them
selves or their States. The result, of
course, is that waste increases and non
defense expenditures steadily mount
month by month.
BlueprintS have been presented by
ex-President Hoover, by the United
States Chamber of Commerce, by Sena-
tors Byrd, Douglas and others showing
that as much as SO billion can be
saved annually without crippling
single vital agency. The President has
put himself behind none of these. Nor
is there any chance that Congress will
act effectively on any. Bad as is this
state of affairs. it is made terribly worse
by the imitation which, again despite
presidential mouthings, this admins
tration has not only permitted but en-
couraged. The rock-bottom cause of in
flation is that wage increases are inevi-
tably followed by price increases, which
then lead to other wage increases,
which puts into effect dangerous spiral
that ultimately must wreck the whole
economy.
Because Of its political subserviency
to the labor bosses, the Truman adj
ministration has permitted this spiral
to gain great headway. It is still operat-
ing with practically no restraint. In con-
sequence, the cost Of living has acutely
increased and War Mobilizer Charles E.
Wilson asserts that imitation has raised
defense costs by 20 per cent. This
situation together with the vast deficits
that loom and the awful height of the
national debt seems to justify those who
contend that the Federal finances are
now alarmingly out Of control-and a
catastrophe threatens. Warnings have
been broadcast for nearly 20 years.
The manner in which these have been
and are-disregarded, make us seem
a Nation of financial imbeciles, hell bent
on our own destruction.