Evening star., 1953-09-22
Won't Issue Orders
From Ivory Tower,
President Asserts
CONTINUED From First Page.)

ton to save which is responsible
for so many good things that
we enjoy.
'Your coming here brings to
the Government an opportunity
for cooperative work for the
soundneSs of our money in cir
culation and its use.
II want to assure you this Is
not an, administration that
thinks it knows all the answers
or sits in an ivory tower of
lonely isolation to give words
of wisdom and orders which
every one must obey.
Learn From Meetings.
''We learn a lot from meetings
such as yours, of people who keep
their fingers on the pulsebeat of
the American economy. You will
leave us wiser than when you
! came.
Thank you for your help and
patriotic interest in the whole
! American scene"
THE problems of our Nation
are going to be solved only as
each and all segmentS meet with
each other and consult with each
other and reach answers which
are truly American, sound for all
Americans and not just for one
class or group.
I'VE consider it a great honor
and privilege to meet you and
exchange ideas"
Secretary Humphrey in pledg-
ing that the administration will
seek no poStponement Of the in
come tax and excess profits tax
expirations added, Many fur
ther adjustments in taxes are
now under consideration by the
Ways and Means Committee for
submission to the next Con-
gress."
He also foresaw the possibility
of reaching a balance between
cash income and cash expendi-
lures by the end OF this fiscal
year next June 80. If that can
be done. he said, "it will be much
better than we dared hope for
six months or so ago."
Discounts Stock Decline.
The Secretary, discussing the
current outlook for the economy,
said he cannot agree that the
stock market decline is a sure
sign of disaster as it appears
to some.
'It may well be that as the
fear of defiation Declines" he
continued. some switching is
taking place from stocks to bonds
or cash which the holders have
not dared to make during the
past period of growing imitation.
1T may also be that there is
some fear of declining earnings
as certain supplies more nearly
approached demand and goods
become available. That is moth
ing to shiver about. ~
In our great and growing
economy some adjustment is
constantly going on keep
your eyes open. Seek out the
soft spot and see what can be
done about it.
For over two years now, from
quarter to quarter, businessmen
have been expecting and predict
ing some downturn. It has not
materialized in many lines be-
cause Government and private
spending has been increasing
faster than new productive ca
pacity came in.
Cut in Federal Spending.
Government spending now
appears to be on the road to
reduction. That is what the
American people want and de-
mand. But in spite of all we
can do and all the savings we
can make, relatively small re-
duction is the most that we can
hope to accomplish-quickly.
THAT means there will still
oe a tremendous amount of
money to be currently pumped
into the economy. And further
more it is the definite policy of
this administration, through tax
reduction, to return to the people
for them to spend for themselves
all the real savings in Govern
ment spending which can be
reasonably anticipated"
Mr.. Humphrey discussed THE
Three Pillars of Sound Money"
These are "a proper budget pol
icy, a properly functioning Fed
eral Reserve System and proper
debt management" he said.
He reminded the bankers that
the prospective deficit has been
cut from more than $11 billion
to less than 81 billion and that
for the first time since 1948 total
appropriations are less than esti-
mated receipts for the year.
Unless some unexpected event
arises which substantially
changes the need for money, we
are finally on our way toward
getting the budget under con-
troll" he said.
Discusses Debt Situation.
He explained to the bankers
the reasons for his request for
raising the debt limit. He said
If the Treasury's cash balance
runs down too much, "a few days
of Unexpectedly heavy expendi-
lures or an unpredictable shift
of a few days in tax receipts
might easily force the treasury
to do borrowing at a time when
conditions in the money market
were not propitious or in
amounts that might substantially
exceed our estimated borrow
ings."
National defense needs, he
pointed out, are the explanation
Of the difficulty in cutting ex-
penditures balancing the budget
and obtaining a quick tax re-
duction. He said:
1.-THE real possibility of an