Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-01-22
Economy Advocates
In Congress Urge
Deeper Budget Cuts
By Joseph A. Fox

FTeSluenC ElS6I1LlOWeT uuDdI"
anced $685. billion spending
budget for the next fiscal. year
today was the target of the
economy minded on Capitol
Hill and an object of suspicion
in quarters fearful that the adj
ministration proposed to take
too much away from defense.
Generally. the reduced esti-
mates. which run $50 billion
under the current level. came in
for praise, although. there was
some complaint-largely Demo-
cratic-that social welfare needs
have not received sufficient con-
Sideration.
AS the bulky document head
ed for its first congressional stop
in the House Appropriations
Committee. Chairman Taber
told newsmen there was a chance
of wipihg out the $2.9 deficit
which President Eisenhower
forecast under his own income
and outgo calculation.
Cuts Held Possible.
Mr.. Taber. who always insists
that there never was a budget
that could not be cut. responded
only that "the proof of the pud-
ding is in the eating" when adj
viSed that Budget Director Dodge
had said that an actual balance
could be achieved only at the
expense of essential activities of
the Government"
Senator Ferguson Of Michigan,
chairman of the G. o. P. Policy
Committee, expressed disappoint-
ment and added: II hope cuts
will be made in Congress that
will bring it into closer balance"
While forecasting a $2.9 deficit
under present conditions. the
administration has warned that
this figure will be almost doubled
If reductions in corporate in
come and excise taxes go through
dS SCIeQuleO on April !.
Douglas ChideS G. o. p.
There was some Democratic
criticism also of the unbalanced
budget, and Senator Douglas,
Democrat, of Illinois predicted
a deficit this year of "at least
SIS billion" and chided the adj
ministration for an altogether
too optimistic" estimate.
Gen. Eisenhower predicted the
deficit will be $3.3 billion June 80.
Senator Douglas said the
Treasurer reported earlier this
month that the deficit was in
excess of 1913 billion and added:
They now say they are going to
pull that figure down to 1913
billion in the next five and one
half months"
High corporation profits in
1853 are a major factor in re-
ducing the size of the prospective
deficit" Senator Douglas said.
Nevertheless. this estimate is.
much too optimistic. 1t is sim:
ply incredible that they can cut
the deficit down by SOS billion
in less than six months"
The Senator, former econom-
les professor. also took issue with
Gen. Eisenhower's sta ment
that estimates of receipts for the
next fiscal year "are based upon
the continuation of business con-
ditions. personal income and COR,
poration profits at. substantially
the present high levels"
No Alternate Program.
Senator Douglas said the bhdg-.
ct contains no hint of any adj
miniStration program should the
forecast prove wrong.
If there should be a serious
drop in business, conditions" he
said, mot only will that increase
the deficit at existing rates of
taxation but it will raise the
further question as to whether
We should not give stimulus to
employment by increasing the
personal exemption for income
tax purposes and by some posi-
tive program of public works
Senator Douglas, speaking at
the Women's National Demo-
cratic Club. said also that he be-
lieved the defense budget placed
too much emphasis on retalia-
tory atomic power, and too little
on ground forces.
He said the Communists would
be able to chip away" at Asiatic
countries, knowing that the
United States would use atomic
weapons only as last resort.