Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-01-22
Senator George Is Dubious
About the Effectiveness of
Americas Economic Aid

Foreign Relations Committee. says
this country's Point Four program
Is open to REORGANIZATION.
In an exclusive interview. he told
three Associated Press writers that
he has gone along with this coun-
try's economic aid program but
cannot see that 1t has been really
effective. Asked If he thought that
in state of competitive co-exist-
ence with the Soviet, the big Ameri-
can weapon is economic, he replied:
II very much doubt It,"
ST would like to re-examine the
success Of the Point -Four program
and would like to determine whether
or not 1t is being wisely directed"
he said.
Senator George, who has spent
80 Of his n years in the Senate, Is
one Of the most widely respected
men In Government. by Republicans
as well as by his own Democratic
Party. President, Eisenhower once
said he would not indulge in politi-
cal mudslinging against a party
which included a man like Senator
George.
He was interviewed by Jack Bell.
head of the APPS star in the Senate:
John Hightower. Pulitzer prize
winner noted for his INTERPRETERS
on foreign affairs, and Elton Fay,
military affairs expert who heads
the Pentagon STAFF.
Their questions covered . wide
range Of subjects, domestic and for
eign. which viii be before Congress
n this election year. Here are the
questions and the Senator's an
gwers.
@. Senator. President Eisenhower
has predicted that the budget will
b balanced in the next fiscal year.
What are your views on that? Do
you think that's possible or likely?
A. ! think the President said 1t
would be balanced at the end Of
this current fiscal year. June 80.
1855. think that Is possible.
q. In view Of that, how do you
expect budget balancing In the next
year, though, with an additional
billion dollars In expenditures and
some additional funds asked for
foreign aid?
A. It would be very difficult to
balance the budget for fiscal SO
and 81. the next flscal year. It
can only be balanced. in my judy
ment, BY reducing the expenditures
asked for and by making all the
necessary economies that can be
made, but particularly II a, high
level of business prosperity con-
tinues in this country. which would
produce more than the estimated
revenue.
@. Senator, you have urged tax
reduction. How can the budget be
balanced II there II tax reduction?
A. / think that the high level Of
general prosperity which obtains
In all industry except agriculture
and q few minor related areas win
produce more than has been esti- =
mated In way Of receipts. ! think.
also. that while many appropria-
lions may be slightly increased that
the expenditures will be somewhat
less than has been advertised to
the public. ,E +
Tex Reduction
q. II 1t comes to q question OF
either reducing taxes or balancing
the budget, which would you favor?
A. Well, would like TO see the
budget actually balanced or brought
into practical balance. because
think 1t is an unsound fiscal policy
to borrow money to make any tax
reduction, and don't think that is
absolutely necessary-not yet. And
I believe that the budget may be
brought into practical balance and
at the same time give q leeway for
some tax reduction.
@. Senator, II there IL actually q
balanced budget, would you favor
reducing taxes before paying some
thing on the debt?
A. Oh. yes. / would like to see the
debt paid, but the debt today is
above $275 billion. Even token
payment would extend tax reduo-
ton so far into the future that even
the youngest people now living
would never be able to realize any
thing from 1t. I therefore believe
we should reduce taxes. because the
American people have borne a very
heavy burden. They have done 1t
to meet the expenses and demands
and recommendations Of the execu-
tive branch Of the Government, and
I believe they are entitled to some
consideration. Also, sensible and
reasonable reductions Of taxes will
not necessarily reduce revenue, but
will probably increase 1t.
@. Senator, you spoke Of . bad
condition of the farm economy. DO
ydf think the Presidents recon-
mSfidations ON his new farm PRO-
gram are adequate to lift that econ
omy III the immediate future?
A.eNo, do not. think that the
Presidents, recommendations. to
the extent that they did 60. move
In the right direction. but think
they are not adequate to meet the
immediate necessities Of agri-
culture. As { long run program, I
think 1t would be helpful to agri-
culture. ~ . tsg.a
Form Prices 10
q. Can you tell MS briefly what
you think should be done to. meet
the problem Of falling farm prices?
A. Well. think this. The Presi-
dents message very properly
stressed the burden Of the sur
pluses but he stressed It. Sur
pluses are not necessarily q curse
or q plague as the President said in
his message. They may be bless
ing. se
Let me say this---that in 1854 we
had great drought In the areas
where one of the basic CROPS are