Evening star. [volume] (Washington, D.C.) 1854-1972, 1953-08-09
Ignoring Review Boards
Caused Lots of Trouble
Writer Says Emergency Buys
Were Dirty Trick in Effect
By Fronk R. Kent

Inability of the present admins
tration to make greater progress to-
ward ful1llment of it's promises for a
balanced budget and reduced taxes has
been attributed to the fact that the
mess" it inherited from the Truman
administration was very much worse
than any one suspected. Naturally the
left-wing Democratic propagandists
have denounced this as an alibi.
OF course, it is an alibi. But it
happens to be first-class, high-grade,
unbreakable and unsuitable alibi.
which can be supported with figures
and facts. The real reason the Treas
ury cannot lay down with confidence
a firm chart of expenditures and re-
ceipts for the next fiscal year is be-
cause of the habit prevailing for the
past few years of permitting the mill
tary establishment to make contrac-
tual obligations involving unexpend-
ed appropriations extending for years
into the future. Neither President Els
enhower, Secretary Humphrey nor any
one else had any idea Of the extent
to which this practice had been carried
until they began to check up on the
real situation. Until then the Treasury
experts had believed that the Boards
of Contract Review had worked eff
fectively.
Recently they have found out better.
There are IA Of these review boards
covering the country. The idea was
that every Army, Navy or Air Force
~ Vye% he Hxy A1
these boards before becoming effective.
And such was the general procedure
until after the election last year. About
that time, realizing that a new admin
iStration was coming into power and
spurred by the allegations Of an am
munition shortage, it seemed unwiSe
to some Of the military men on the
higher levels to be caught with large
unexpended-though authorized-bal-
ances on their hands.
They then proceeded to bypass the
review boards. Members of these
boards point out that the law provides
that this legally can be done in case Of
emergency" It is admitted, too, that
the emergency" is left to the judg-
ment of the military authorities. How
ever, 1t is asserted, no such "emergen-
Cyl existed as to justify the wholesale
bypassing of the review boards that
has occurred. In one instance con-
tracts unapproved by one board exceed
$500 million. Contracts for material
and munitions upon which delivery
cannot begin until the end of 1854 have
been showing up at the Treasury, all
I,,11,
The Treasury has to find the money
to meet these obligations. No one ap-
pears to know how many such con-
tracts have been signed or what the
total obligation will be. All that is
known is that it makes unstable any
foundation for a balanced budget.
Moreover, nothing very much can be
done about 1t. No law has been vio-
lated Nothing dishonest has been
done-except that it certainly is dirty
trick to play on an administration
which had not-and could not have
had-any idea of the situation.
According to the Guaranty Trust
Co.'S monthly review, the carryover of
unexpended balances, including these
contracts, amounts to more than $50
billion and is directly responsible for
the loss by Congress of the control it
formerly exercised over the budget.
The assertion is made that current
Federal deficits are largely due to the
condition, and there seems no excuse
for the continuation of so unsound
scheme.
The state of affairs with which the
Treasury now is confronted empha-
sizes the need for action. So far as the
Treasury is concerned it has taken
what action it could to prevent new
bypassing of the review boards for the
purpose of committing uneXpended
balances. It's difficulty is that it still
does not know exactly how many con-
tracts are still out or when they will
turn up. While the bypaSsing has been
stopped so far as executive action can
stop it, Congress itself must act to end
the practice of appropriating ahead
which has resulted in loss of congress
sional control over the budget as we'll
as an admitted sickness Of our Federal
finances This condition" the Guar
anty Trust Bulletin says, lis the result
of many years of rong-doing." THE
correction" it asserts. may take time.
but it can be accomplished if the will
to accomplish It continues strong