Evening star., 1952-03-14
500 Billion Lies Idle in Treasury
As Services Ask More Funds
By Martin S. Hayden
Notth American Newspaper Allianes

4 4 -
/ By Martin S. Hayden
Il Nofth American Newspaper Ailianes
4 A total Of nearly $50 billion
flying idle IN the Treasury while
administration leaders urge new
defense tax boosts has split House
land Senate leaders In bitter dis
agreement over the right way to
finance rearmament.
Heading opposite camps are. on
1.-THE one hand. Senators George Of
Georgia. Douglas Of Illinois and
Moody of Michigan, all Demo
lcrats. who would limit military
appropriations to the amounts
lPentagon purchasers can actually
lspend this year, and Representa-
tive Clarence Cannon. Democrat.
lof Missouri, the House Appropria-
Itions chairman. who insists on the
status quo whereby the full cost
|of each contract Is laid aside be-
fore an order can be signed.
Authorizations Suggested.
The new dispute was touched
|off Monday when Air Force I'm
|dersecretary Roswell L. Gilpatric
told a Senate subcommittee that.
because of an average 24-month
lead time" between contracting
and delivery of planes. Congress
could cut $3.5 billion from current
Air Force requests for funds with
out crippling air rearmament.
Speaking as an individual tax
payer" Mr.. Gilpatric suggested
that Congress could approve con-
tract authorizations which would
permit the armed services to
place their orders. and then ap-
propriate the actual tax money
when bills for the finished items
become actually due.
Immense Frozen Balances.
{. Senator Moody. who initially
AN with the economy ball when
Ar. Gilpatric told the story before
The Small Business subcommittee
which the Michigan Senator
heads. came up today with Budget
3ureau and Defense Department
figures showing the immensity OF
the frozen balances of cash on
hand.
AS reported to Senator Moody,
the Pentagon, when the fiscal year
ends next June 80. will have on
hand an unexpended 1863 billion
including $19.3 billion in Army
$15.7 billion belonging to
The Navy and $21.9 billion In funds,
on hand to pay for still-undeliv-
cred Air Force items. Added to
$14.2 billion in Army money, $13.2
billion for the Navy. and SPOT
billion for the Air Force being
sought in the new budget, this
would give the three services a
total of $104 billion available for
l952-53 expenditure.
To Spend $51 Billion.
1.-THE best estimates ! can get"
Senator Moody said, indicate
that, during the next fiscal year.
The three services will actually
spend about $51 billion which
would mean that another $50 bill
lion would be left in the Treasury,
unexpended, when next year ends.
In addition to all the above, I am
hold that, ont OF b new $3.5 billion
supplemental bill for military pay
and public works, an additional
Si.5 billion In unused money will
be left at the end of next year" /
Senator Moody added that "to
me it looks ridiculous to talk Of a
deficit, or increased taxes. when
the money is simply going to lie
idle"
Joining Senator Moody today.
Senators Douglas and George took
q rougher approach that the pres
ent system was desired by the
military services as a way of get
ting out of the financial control
Of Congress.
II mad a row with one of the
service secretaries about it the
otner night" Senator Douglas
said. II told him ! thought the
was trying to accumulate
all the cash they can possibly
spend in the next few years and
thus make themselves inde-
pendent of Congress. Actually, /
am so distrustful Of the whole
approach to money thai.
sometimes am afraid I am get
ting little pathological about It,
Their whole system strikes me as
being loose and wasteful and /
for one will approve no more
blank checks until they show
signs Of q housecleaning."
Senator George seconded Sen
ator Moody's theory that the cur
rent tax crisis could be lessened.
and the military needs met, with
contract authorizations.
The high brass" he said, "haye
taken the completely fallaciousI
that they must have all
the money tied down when they
sign q contract. That is absurd.
Contract authority gives full as
surance that Congress will make
the money available when it is
time to pay the bills and has the
added value Of assuring that mol
more will be appropriated than is
actually necessary to meet the
costs. The services just do not