Evening star., 1953-08-28
New BudgetC
Proof Of Policy,
6. 0. P. Asserts
Fiscal Operations
Muy Near Balance
BY Next June
By J. A. O'Leoy

New figures showing the
Treasury will be close to- a bal
anced budget next June were
welcomed by Republicans in
Congress today as proof the Eli
senhower administration is de-
termined to achieve a sound
fiscal policy.
Democrats seized upon it as
proof there is no need to raise
the $275 billion debt ceiling to
$3.50 billion, and one Repub-
lican, Senator Malone of Ne
wade, shared this view.
The rosy new budget picture
shows that when this bookkeep-
ing year ends next June, the
Governments outgo will be down
to within $500 million of its to-
tai income, on a cash basis.
Earmarked Items.
The cash budget, however, in
cludes several billions of trust
funds, such as social security
taxes, which are earmarked for
specific purposes. Even deduct
ing these, however, the deficit in
the regular budget will be only
$3.8 billion, as compared with
the $9.4 billion deficit of last
June, and the $50 billion deficit
the President expected three
months ago.
The salient point in the new
budget report is that, as a re-
suit of the Korean truce and
the administrations economy
drive, Treasury Secretary Hum
phrey and Budget Director
Dodge now figure spending this
year will be So billion less than
they expected in May. This in
turn means the national debt
will be that much lower at the
end of the year. The new figures
for the current fiscal year are:
Spending, $72.1 billion, as
against $746 billion last year:
receipts, $68.3 billion, as against
$65.2 billion last year; public
debt, Spill billion next June.
Three months ago, the debt was
figured to be $273 billion by next
June.
Waits Until September.
While this lessons the chance
of a special session this fall to
revive the Eisenhower request
for a higher debt ceiling, Secre-
tary Humphrey emphasized he
still must see how September tax
collections run.
The debt is now a little more
than $272 billion, ard the big
headache facing the Treasury is
that, between now and rext
spring, temporary borrowing
may send the Government dan-
gerously close to the legal debt
limit.
House Speaker Martin called
the report good news for the
American people," and Chairman
Taber Of the House Appropria-
tions Committee said it shows
the President has aroused" de-
partment heads to a new sense of
responsibility. House Republican
Floor Leader Halleck also praised
it.
But Representative Cannon of
Missouri, ranking Democrat on
said the new fig
ureS prove Mr.. Humphrey was
utterly mistaken" in asking for
a higher debt ceiling. Senator
George of Georgia, ranking DEM
ocrat on the committee which
must approve any debt change,
said it would now seem unneces-
sary to raise it.
Humphrey Elated.
Secretary Humphrey was elat-
ed by the improved budget pic
ture. He said it was better than
he had hoped for, but cautioned
that a variety of factors must
continue as they are if the Gov
ernment is to stay within the
present debt ceiling.
About half of the 81 billion
annual saving from the estimates
of May is attributed to the truce
in Korea. The rest is the result
of the economy program in all
branches of Government.
The new budget report further
emphasized that these figures do
(See BUDGET, Page A-5O