The Key West citizen. [volume] (Key West, Fla.) 1879-current, 1953-10-26
By FRANK o'BRlEN

WASHINGTON LR-The admins.
tration is hoping that two big
things win happen-and ole Won't
Ito allow something like a bal.
anced budget next year.
Nevertheless, there is strong
suggestion that the country is be
Ing prepared for the possibility oi
continued, perhaps sizeable, def.
let's due to large defense outlays.
Here are the possibilities, an in.
formed administration source said,
on which are pinned hopes for a
budget balanced at least on cash
income and outgo basis next year:
/. That the new Joint Chiefs Of
Staff win come up next spring with
plans for a military establishment
10 cost four or five billion dollars
less.
2. That Congress can be pre-
vailed upon, even in an election
year, to continue present corpora
ton income rates and excise sales
tax scheduled--Or 10 enact new
levies to make up for any cuts
In present rates. Corporate and
excise taxes are scheduled to drop
In April to rates yielding an es-
timated three hiliion dollars less
a year than now.
8. That the slight softening in
business activity in the Jnly-Sep
TENDER quarter this year viii moi
turn into a recession requiring big
spending for relief and public
works while government revenues
dropped.
Last week. Secretary Of the
Treasury g Humphrey made Q
speech, to Republican party funt
ralsers in San FrancAco, that
echoed both the administration.
budget hope and Illustration.
Humphreys speech mirrored thi
hope that an adequate defense
aneed not cost as much as it has
that perhaps big savings can b.
made by tuning the defense estab
lishment to tomorrow's weapon!
and strategy.
He seemed to be talking Of ;
lighter, more mobile defense. witt
less emphasis on costly items likt
battleships and large standing
armies.
But until such program |.
assured, savings can not be count
ed certain. Humphrey made plain
In any event, defense will continu,
: to cost lot, he indicated, am
when il will decline is still guess
Later in the week, after talk Il
the Department Of Commerce Bus
mess Advisory Council at a meet
ing in Pebble Beach. Calf, Hum
phrey told reporters there viii b,
another deficit in 1855, unless Wv,
can very substantially reduce on
military expenditures.
Earlier. President Eisenhowe
told his news conference he coul,
not say the budget would be bal
anced next year. In speech a
Detroit. Budget Director JOSEPH
NJ. Dodge said il would be at leas
as hard to produce a balanced bud
get next year as it was this year
when the administration accepte,
. $500, 0Oo, 900 deficit.
w. Randolph Burgess, deputy /
Humphrey for debt management
and fiscal affairs. told a Washing
ton meeting of business writer
last week he could not predict
balanced budget next year. That
he said, depends on what is don
In the Pentagon. and on the broav
world situation.
The administration source VIII
eaid there was Still hope for
cash balance mex; year also sal
there was little hope for balance,
cOnventionl budget.
That means the government
hopes to spend no more than
takes IN from all sources, includin
receipts for Social Security an,
The other government public trust:
Trust receipts belong to tn
trust, not to the government, an,
% are not counted IN the conven
Honal budget as income balancin
outgo. But the government Away
has spent the money while givin,
the trust government bonds in re
enrr
This year, for instance. the cor
ventlonal budget deficit is est
mated at s., 500, 600. 900 but the cas-
deficit at only a half-billion.
Since Social Security rates ar
D. be raised one-thlrd next year
ne government may have NOR
unexpected trust fund receipts thai
eAis year to help IL toward cas-
balance, Perhaps it will have ~
b 5 billions, compared with abou
~ this year.