Evening star., 1953-05-15
Eisenhower Chat
Seen Based on U.S..
Concern Over Taxes
BY the AssoeIated Press

President Eisenhower's de-
cision to report to the Nation
by radio next Tuesday empha-
sized today deep Republican con-
cern about public reaction to
continued deficit spending and
possible tax cut delays.
In what the late Franklin D.
Roosevelt called a f1reside chat,
Gen. Eisenhower will tell why
his G. o. P. administration can't
balance the Federal budget now.
There were some reports-not
verified at the White House-he
might call for an extension of
present high taxes despite Con-
gress' obvious distaste.
What he has to say about the
progress Of Korean truce negotia-
tions. If anything, may depend
on developments.
To Talk at 1880 PM.
The President told a White
House news conference yesterday
he will speak on the inter-related
problems of national security,
the budget and expenditures.
The White House announced
later the speech will be carried
by all major networks from 10:30
to II pm.
It will be the Presidents first
report to the Nation from the
White House, as distinguished
from broadcast speeches to live
audiences. He said it will be
followed about a week later by
an informal televised discussion
Of the purposes which have
guided his administration and
what he thinks it has accom-
plished.
One of Gen. EiSenhower's
objectives in the two talks ap-
parently will be to assure the
country that its basic military
security will not be damaged by
promised spending slaShes.
At the same time, he is ex-
pected to try to explain why it
might be dangerous to cut
deeply enough into the arms
funds now to eliminate red ink
spending and achieve the
balanced budget goal he has said
is a major objective Of his ad-
ministration.
Gen. Eisenhower will have the
opportunity. if he chooses to
take it. to blame the Democratic
Truman administration for pill
ing up huge fund carryovers
which he has complained make
it difficult to reduce expendi-
lures in the fiscal year beginning
July l.
Whether he makes any recon-
mendationS for continuing pres
ent high taxes apparently de-
pends on the ability of Treasury
Secretary Humphrey to come up
with a plan of action acceptable
to q G. o. P. Congress that wants
to fulfill 1852 campaign promises
to cut taxes.
Legislative leaders say they
fear even the Presidents pres
tige would not be enough to per-
suade the lawmakers to continue
the excess profits tax set to ex-
pire July / or delay a 10 per cent
personal income tax reduction
scheduled January l.
Try to Clarity Muddle.
Loss Of the two taxes would
cost the Treasury an estimated
81 billion in revenue in the next
fiscal year, making the prospec-
tive deficit that much larger.
Gen. Eisenhower seems to have
listened to political counsel that
only a statement by him can
clarity for the country the mud
die created by his cabinet men,
bers by conflicting statements
about when the budget may be
balanced.
His party's leaders fear that
unless the public is told the why's
and wherefors, the Democrats
will be able to make political
capital in next years congress
Sional campaign out of the fact
that his Government, largely
populated by businessmen, can't
bring spending into line with
receintS