Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-12-30
KnowIand Gives
DebtCutPriority
BY J. A. O'LEARY

Dy - IA " LGahI
Senate Republican Leader
Knowland of California lined up
today with those who want Con-
gressS to put reduction of the ma
tional debt ahead of tax reduc-
ton If the Federal budget is bal
aneed in 1856.
One of the first leaders to re-
turn to Washington for the ses-
sion which opens Tuesday. Sen
ator Knowland also commented
on these other major issues:
Farm relief - Congress will
pass a bill early in the session to
improve the economic condition
of farmers. but viii not go back
to the rigid 80 per cent Of panty
for price supports already voted
by the House.
New Start on Reads
.Highways-A new start prob
ably will have to be made on the
best method of financing a.
stepped-up highway program,
since the House turned down both
the Eisenhower bond issue and q
pay as you = go plan recon-
nended by its own leaders last
summer. r
Natural gas regulation-Sen-
ator Knowland said the House
approved bill to exempt produc-
ers of natural gas from Federal
regulation cuts across both DEM
ocratic and Republican lines in
the Senate. He believes there
will be enough votes to pass the
bill, if it can be brought to q
vote, but pointed out that 1t
could encounter prolonged de-
bate. For this reason he believes
it will have to be taken UP early
If anything is to be done on 1t In
this Congress.
Disaster insurance-The floods
of 1855 undoubtedly will prompt
such legislation. but the Repub-
lican leader said it would have
to cover disasters in general
rather than floods alone. Sen
ator Knowland indicated he is
inclined to flavor suggestions
made to the Senate Banking
Subcommittee last month by adj
miniStration spokesman that the
efforts should be to work out this
problem through private insur-
ance companies with some Fed
eral assistance rather than make
it an outright Government func-
ton.
Compromise to be Key
Discussing the session as a
whole. Senator Knowland said
that whatever is done will have
to involve compromise between
the parties in view Of the close
division. especially in the Senate.
which consists of 40 Democrats
and II Republicans.
The Republican leader made
no fiat prediction on what will
happen to the administration
announced plan to ask for $40
billion in new foreign aid funds.
a substantial increase over this
year. He said he expected it
would produce a lot of debate.
On the subject of taxes. Sem
ator Knowlard said he does not
expect the President to recon-
mend tax reduction in the State
of-the- Union essage. He
pointed out that it will be desir-
able to await the April Is tax re-
turns, and tc see what economic
conditions exist in the country
next year.
Senator Knowland said he ex-
poets there will be demands for
tax reduct IN in Congress. but ne
does not believe the American
people would want tax reduc-
ton that would have to be paid
out of borrowed money.
The California Senator Said he
thought sound fiscal policy would
suggest putting a balanced
budget first. some payment on
the debt second and further tax
reduction third.
Time for Action
Pointing out that the debt is
now approximately $3.50 billion
the Senator SAID, IF we are ever
going to whittle it down. the
time to do it is when business
is good and money is coming
in"
He pointed out that even II
1t were possible to pay 81 billion
q year on the debt 1t would take
280 years to pay 1t off. If pay
ments were made at the rate OF
81 million a day, or $685. million
annually, he said, 1t would take
over 500 years to pay 1t off.
Perhaps / am somewhat old
fashioned. but I think 1t is time
somebody gave this considera'
tion," said Senator Knovland.