Evening star., 1951-01-15
Record S136 Million Budget Asked Without Tax Increase
S71.5 Billion Budget
Sent 10 Congress 10
Combat Red Threat
Continued From First Page.)

Continued From First Page.)
resented an increase OF SIS bill
lion over this year.
The President said, however,
that all items "tinged with ma
tional defense" would cut next
years figure to slightly more than
81 billion under this years home
front figure.
Mr.. Truman said "the require
ments of national security are re-
fiected in every major function Of
the budget. He contended further
that "strict economy in non-de-
fense spending" had been adhered
to in preparing the budget.
Cut Made on Some Items.
Giving an example, he said "the
only major new public works in
cluded are those directly neces-
sary to the defense effort" He
expanded on this topic at the
seminar. asserting that a cut of
AZ per cent had been made in
135 items-not specified.
Slapping at Capitol Hill advo-
Gates of budgetary economy. the
President told newsmen that when
ever a person makes wild state
ment about how many billions
should be taken from the budget,
you can be morally certain he
doesn't know anything about the
budget.
The President asked for a total
outlay of $1.l billion to expand
production of such basic products
as rubber, steel and aluminium,
and recommended in addition
contractural authority for further
investment of $1.2 billion. He pro-
posed expenditures of more than
$1.2 billion to enlarge output of
atomic materials and weapons"
Business loans of $50 million were
also asked.
Included also were estimates of
$276 million to enforce the price
wage controls Mr.. Truman says
are inescapable to combat infia-
ton: $24 million for rent control;
500 million for defense housing
and $3.50 million for civil defense.
Arl-~ EEDC T~~:.I~k:--
The President also came out
swinging for such controversial
items of his Fair Deal program
as a Fair Employment Practices
Commission to prevent discrimi-
nation in industrial hiring, Fed
eral medical insurance with a first
year pay roll tax of $275 million.
the Brannan farm plan which en-
tails production payments to hold
down consumer cost of perishables,
school aid for States housing
for "low-income groups" and the
st. Lawrence seaway-power prof.
ect. Turned back repeatedly by
Congress on these issues, the
President now put them all on
a defense basis. %
Calling for veterans benefit
spending of $40 billion, Mr.. Tru-
man noted that this figure is
falling under IS billion for the
first time in five years.
In view Of the fact that during
the coming years the lives of
nearly all our young men may be
interrupted for service to their
country" the President urged that
Congress consider a new "GI Bill
Of Rights" which would avoid the
mistakes of the World War II
legislation.
There is ample evidence that
the CT bill has benefited the Ma
ton as well as millions of vet
Grams, despite abuses which i'm
paired the readjustment of some
veterans and added to the cost of
the whole program" he said.
SIS Billion Ahead Of Estimate.
The new budget is running
about $25 billion ahead of this
years projected expenditures, and
the President said that "the new
emphasis on military prepared
ness reflects the necessities of the
world situation today"
ut reflects no shift in purpose, :"
he continued. Our purpose re-
mains to secure and strengthen
peace. We are determined to seek
peace by every honorable means
mindful of our responsibility to
ourselves, to our friends and allies,
and to humanity everywhere to
spare the world the tragedy of
another world war"
With today's message, the
President rounds out in general,
the legislative program to be
urged on the new Congress, tying
in with the State-of the Union
and economic messages which
have preceded 1t.
There will be, however, subse-
quent supplementary messages,
such as that on taxes, to fill in
the gaps. Among these will be an
amplification of what the Presi-
dent is proposing in the way of
foreign aid.
s Argentina iS establishing an