Evening star., 1953-03-15
Eisenhower's No. ! Aim
Is to Balance Budget
Writer Sees Financial Policies
Changed for the Better
By Fronk R. Kent

W IIOUN n. NSUt
The real crisis in Washington is a
financial one and it is fortunate, indeed,
that the new Eisenhower administra-
tion not only sees the fiscal facts far
more clearly than its two predecessors
but has totally different attitude to-
ward them. The outstanding fact is
that this, the richest industrial nation
in the world, by reason Of long con-
tinued and terribly unsound fiscal
policies, is now menaced with a coll
lapse that would be disastrous not only
to ourselves but to all our allies and
friends.
This ought to concern every man and
woman in the country capable Of
coherent thought. 1t is inexcusable not
to face the realities. The basic one is
that for more than 20 years this Gov
ernment has been spending annually
far more than it's income and at the
same time annually has increased taxes
until they approach the point of con-
f1scation. The net result of these
policies is national debt of $265
billion, and annual deficits so great
that no one computes them accurately.
In brief, the Federal finances are out
of control. It should be clear that il
this state Of affairs continues the COLI
lapse of our currency is inevitable,
which will mean that we and the rest
of the free world will be defenseless
against comm uniStic aggression.
To avert this calamity was the chief
mandate given President Eisenhower in
the November election. Unless he can
regain control of the Federal finances,
balance the budget and reduce taxes he
will have failed. No one knows this
better than the President. 1t is in the
front of his mind all the time. And
the one thing of which we can be sure
is that he will put everything he has
in the effort to fulfill his campaign
pledge. Not in a generation has there
been a man in the White House who
advocated governmental economy with
the Eisenhower sincerity and deter
mination. This makes cooperation be-
tween the President and Senator Byrd
of Virginia natural and inevitable.
Ever since the New Deal began in 1893
Senator Byrd has consistently fought
reckless expenditures and waste.
Often his was the only voice in Con-
greSS raised against the wild pouring
out of public funds. the vast expansion
of the Government pay rolls. But, he
never deSisted and, through the special
committee which he still heads, has
saved good many millions of dollars.
This, OF course, was only drop in
the bucket compared to the executive
expenditures under the joyous doctrine
of "tax, tax, tax spend, spend, spend,
elect. elect, elect" The big Byrd handi-
cap was that he not only had no sup
port from the White House but the
active and personal hostility of both
the late Mr.. Roosevelt and Mr.. Truman.
This situation now happily is reversed
and the new President and Senator
Byrd seek the same goal with the
same earneStness.
This does not mean that 1t can be
achieved in the near future The i'm
mense funds necessary for defense can
not be deeply cut with impunity. The
President. Senator Byrd and Senator
Taft, the Senate majority leader, all
soundly believe no tax reduction should
be made until budget balance is at least
in sight. All three agree that the diff
culties are hard to exaggerate. Never
theless, the effort will be made in a
way not made before. The "spend,
spend" policy is distinctly "out the
window" A period of Federal austerity
has arrived. No new costly Federal
projects will be launched under this
administration. Some now in exist
ence will be curtailed. There are many
ways by which money can be saved.
Enactment of the leftover Hoover
Commission recommendations is one
example; passage of Senator Byrd's
Single package" bill, in which score
of Senators, both Democratic and Re-
publican. are co-sponsors, is another.
Exceedingly helpful, too, is the group
of strong. we'll informed and financially
experienced men with whom Mr.. Eisen-
hover has surrounded himself. Chief
among these are the Secretary of the
Treasury. George M. Humphrey, and
Joseph M. Dodge. Director of the
Budget. Gone are the Keyserlings. the
Snyders and the Foleys. The Presi-
dents fiscal advisers are forceful men,
opposed to waste, for budget balancing
ahead Of tax reduction, fully aware Of
the national peril involved in con-
tinuation of the deficit financing to
which we have been consistently adj
dicted for two decades. The first and
vital thing is to change our direction,
regain control of Federal finances
through a balanced budget Those
things are fundamental. Probably, as
Senator Byrd says, they cannot be
done before 1854. But, an extremely
good try is going to be made, Despite
the vicious sniping of the New Deal
journalists who diligently-and hope
fully-predict trouble for Mr.. Eisen-
hover, first in one direction, then in
another, there is optimism. The OBJ
stac1es are conceded, but they do not
appall. The atmosphere has changed
and for the better.