Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-07-24
Toward d BoIonced Budget

President Eisenhower has good reason
to speak pridefully OF the fact that his adj
ninistration has closed the books on It's
first complete fiscal year-Which ended
June 30--with deficit Of only bit more
than So billion, or roughly $6.2 billion less
than last years
Only" may not be quite,the right word,
Of course, to use in connection with red
ink figure Of such dimensions. STILL rela-
lively speaking, the sum represents no
table gain In terms of leading the Nation
toward balanced budget. TO appreciate
that, we have merely to keep In mind that
the Truman administration, II it had been
reelected In 1852, would have been COM
mitted to expenditures involving deficit Of
about $40 billion for the fiscal year that has
just ended.
In other words, the Eisenhower admin
istration has Topped almost 81 billion on
the red-ink showing that Harry S. Truman,
In his last budget message as President, had
forecast for fiscal 1854. And this has
been done not by illusory bookkeeping de-
vices but by systematic cuts in already
budgeted expenditures achieved by
subjecting every phase of Federal activity
to continuous review aimed at prodding
all departments and agencies into spending
less, where possible, than the funds allotted
to- them. Thus, largely as result Of this
policy, Government OUTLAWS during the past
IL months have been held down to $67.6
billion, or more than So billion under the
total anticipated seven months ago.
The President has not exaggerated in
describing all this as fiscal achievement
that means great deal to the American
people. Nor has he exaggerated in claiming
even though living costs continue at a
rear-record level-tllat imitation has been
halted, with the dollars purchasing power
having varied only one-half Of per cent
in the past 10 months. Although numerous
factors account for this Improvement, there
can be little doubt that one Of the most
important among them is the Stabilizing
influence of the marked progress made
toward equalizing Federal income and
outgo. In the Presidents words, 1--WE have
come over two-thirds Of the way toward
balancing the budget. We have made
possible program of tax cuts totaling $7.5
billion. :. Our people have new confidence.
We are laying firm base for healthy and
expanding economy, for better national Sc
curity and for more jobs"
More than few Americans, 1t is true,.
take decidedly reserved view of the Presi-
dents optimism. Senator Symington, for
example, argues and with considerable
cogency-that the administration has been
following seriously risky course in econ
omizing on military expenditures. And it Is
certainly correct to say, as Treasury Secre-
tary Humphrey has himself acknowledged,
that plans for further cuts in Federal out
%ho olf 1ycr fvyO
premise that the Kremlin will refrain from
grave new adventures in aggression.
Nevertheless, with all that said, the fact
remains that the administrations advance
toward a balanced budget, the deliberate
shift from continual deficit financing, Is
contributing significantly to the strength OF
our national economy. Certainly, II 1t con-
tinues, II it Is not upset by Communist ac-
ton, 1t Is bound to benefit the American
people as whole.