Evening star. [volume] (Washington, D.C.) 1854-1972, 1953-02-25
Eisenhower Says Balancing
Of Budget Will Be Difficult,
But Does Not Rule 1t Out
Some Desirable
Projects May
Be Deferred

President Eisenhower declared
today that it will be terrifically
difficult to balance the budget
for the fiscal year beginning
July !.
In his second news conference
since taking office, the President
said that the Republican admin
iStration fully recognizes this
difficulty. He did not. however,
comment specifically on state
ments attributed to several Gov
eminent officials yesterday rails
ing considerable doubt that
either a balanced budget or
tax cut can be achieved in the
near future.
Gen. Eisenhower did not even
indicate that a balanced budget
for the coming fiscal year is
out of the question. But his
comment on the difficulty of
matching revenues and expendi-
lures was regarded as one of
the most pointed he has made
yet.
The President said that no
body wants an unbalanced
budget. But it must be recog-
nized that the job of balancing
the budget for the coming fiscal
period will be unusually difficult.
If 1t were not difficult, he re-
marked. the budget would have
been balanced by this time.
Tells of Complications.
Without going into detail, the
President said the problem is
complicated by the pressing ma
ture Of some essential programs
or items that cannot be SUBJ
Stantially cut. Another aspect
of the problem, he noted, involves
choices that must be made con-
corning programs which are
highly desirable but might have
to be deferred until a balanced
budget is assured.
This was the immediate back
ground to the Presidents COM
mentS:
In a series of closed door ses-
sions on both sides of the Capitol
yesterday, Secretary of State
Dulles, Secretary of Defense Will
son. Secretary of the Treasury
Humphrey and Budget Director
Dodge gave this gloomy report
on fiscal prospects:
/. Defense Department appro-
priations for fiscal 1854 probably
cannot be cut below the Truman
proposed figure of more than SAG
billion without endangering ma
tional defense.
2. World tensions may make
it almost impossible to reduce
foreign aid OUTLAWS because Rus
sian pressure ''is as great as it
ever has been and is expected to
continue"
3. A balanced budget may be
almost impossible if laws bring
ing in some $8.5 billion are al
lowed to expire this year.
4. Consequently. it will be ''two
or three months and maybe
not then - before the admins
tration will be in a position to
even suggest a general tax re-
duction.
Wilson Dubious of Cuts.
Appearing before a House APP
preparations subcommittee, Mr..
Wilson left the distinct impress
sion that he "looks askance" at
any attempt to reduce his de-
partment'S funds. One member
told reporters later: "Mr. Wilson
didn't point out any places where
it could be cut. and I get the i'm
preston he didn't think it can
be cut"
Mr.. Dulles told the Senate
Banking and Currency Commit
tee that the world picture lis
about the same as year ago
no better and no worse" Chair
man Capehart said he described
Russian pressure as unchanged,
and Sketched a grim long-range
outlook for the cold war. The
Secretary refused to give any
estimates on possible cuts in the
proposed 81 billion foreign aid
program, though several Sena-
tors indicated they thought it
should be SlaShed to approx
mately SIS billion.
Humphrey, Dodge PesSimistic.
Also appearing before the Sem
ate committee, Mr.. Humphrey
and Mr.. Dodge painted a cheer
less picture of the overall
budget and tax situations. Sena-
tor Robertson. Democrat, of
Virginia, quoted Mr.. Dodge as
saying that if all possible cuts
in expenditures are made, it is
still a question whether the fiscal
1854 budget can be balanced.
Asked to give his estimate of
budget-balancing prospects after
the Dodge-Humphrey testimony,