Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-10-30
President Sees
$500 Million
Defense Boost
Expects New Price
Rises. but Discount.
Fears of Depression
Ry GARNET ID. MORNER


President Eisenhower said
today that defense spending
for the current fiscal year
probably viii 60 over q tenta-
tive $3s billion ceiling by more
than $500 million.
At the same time. the Pres
ident indicated at q news con-
ference that he has about given
UP hope Of holding total Fed
eral expenditures for the year
to $40 million.
He blamed what he called
almost inevitable price in
creases for rising defense
expenditures.
AS regards the Nations econ
omy as a whole, the President
discounted fears Of q depres-
sion. He described the present
situation as "the economy TAX
ing hreather" after a long
upsurge.
He begged on giving any adj
vice to consumers as to how to
cope with the rising cost Of liv-
ing except to suggest that they
should buy less when prices are
going up.
Not . Real Ceiling
The President emphasized
that the s3e billion ceiling put
on defense expenditures by for
mer Secretary Of Defense Will
son was not a sacroSanct figure.
He recalled that the $50
billion figure had been set pv
the Armed Forces Chiefs of
STAFF two years ago as the min
imum needed TO provide ade-
quate defense.
Since that time. he pointed
out, prices have risen generally.
He remarked incidentally that
the military as well as other
Government departments are
facing the need to raise wages.
Under these circumstances,
the President said he had au-
thorized Secretary of Defenae
McElroy to spend more than
the tentative $3S billion CELL
ing II necessary.
He said 1t has been agreed
that defense expenditures now
can so $500 million over the
rate to which they would be
limited BY the $50 billion fiscal
year ceiling to meet obligations
now ready for payment.
For the whole fiscal year
the excess probably will be
more than that. Mr.. Eisen-
hover added.
Can Stay Within Limit
He said the extra $500 mil
lion being allowed now was
agreed upon by the Defense
Department. Budget Bureau
and Treasury Department as a
figure that would still keep the
Government within the author
lied national debt limit.
With defense expenditures
rising. the President said the
total budget could not be kept
to $40 billion without serious
'rstardations" elsewhere.
Mr.. Eisenhower did not re-
late the need for spending more
money for defense directly to
any possible stepup in missiles
programs as a result Of Russia's
recent successes in that field.
He said the chief concern Of
his scientific advisers was what
Americas position relative to
Russia would be in this field 10
years from now rather than the
present situation.
A scientific advisory group
that met with him recently
sought his support. the Presi-
dent added, In awakening the
country to the necessity Of In.
creasing the output Of scientists
by American colleges and uni
versities even If that involved
material Federal aid.
He said the committee Is pre-
pairing a plan laying out hts
part in such a program and
promised that IF possible I'll
do it."
Not Complete Curb
Concerning the cost Of living.
the President said the rising
curve had fiattened out over
the last four to five years.
showing the effect of many
measures taken by the Govern
ment to try TO stabilize the
dollar. But he emphasized that
success is not complete in this
field. Rising prices seem al
most inevitable, he went on. in
view Of the pressures for BUSH
ness TO expand, full employ
See DEFENSE, Page "A