Evening star., 1960-01-01
Balanced Budget
Tied to Steel Strike
MueIIerSees
Prospectof
GoodYeur
By the Associated Press


The prospect Of q record busi-
ness year and the possibility of
a balanced budget despite last
years steel strike were held out
today by Government officials.
In world affairs, it viii be
q year Of challenge to the
United States and its hopes for
peace, Secretary Of State Her.
ter commented.
Declining to characterize his
New Years statement as either
optimistic or pessimistic, he
said there is "a new atnos-
phere Of hopefulness for the
solution of world problems" {"
but added there has been no
real change in Communist
intentions.
Secretary Of Commerce Muel.
Ter added . few ifs also to his
prediction that the national
output win reach the rate Of
$500 billion q year within the
next six months and continue
upward.
Warns ON Imitation
Should there be excesses
in credit, severe imitation and
stubborn selfishness in strike
deadlocks," Mr.. Mueller eau
toned, then prosperity could
be checked"
The revived talk Of q bal
anced budget was more q hope
than q prediction. but Treas
ury officials said that even IL
it isn't achieved the deficit win
be smaller than they had
feared . couple of months ago.
Formal September estimates
of q SOS million surplus for the
year ending next June 80 had
been all but abandoned as the
steel strike dragged on. In
stead there was talk of q $500
Million deficit.
But barring q resumption Of
the strike this month, oficials
said there still is . good chance
Of breaking even. Their esti-
mates Of the steel strikes eff
fects had gone too far, they
indicated.
Budget Proposal Due
The next official estimate Of
the situation Is due January
10, when President Eisenhower
sends to Congress his budget
proposals for the next fiscal
year.
Two minor developments yes
terday dampened further the
prospects Of any quick steel set
tlement, despite the increased
prodding of administration Of
ficials who have been talking
with both sides.
The United SteelworkerS
Union prepared q new court ac-
ton saying the companies are
not providing reports required
under the old contract. It also
took issue with some Of the
companies advertising state
ments.
The union contends that the
aft-Hartley law injunction.
under which its members are
working temporarily, reinstated
all terms of the old contract. It
says the companies are not
making the required reports on
lnion-management unemploy-
ment funds. 1t proposed court
action to force compliance.
But 1t was not clear how
much the unions new actions
reflected the bitterness devel-
oped during the long negotia-
tions, and how much it was Q
part Of the jockeying for MEM
Der and public support. Union
vote 10 DAYS hence or
whether to accept the COM
oanies' latest offer, and both
sides are trying to make q good
showing then.
Mr.. Mueller obviously was
considering the steel strike and
,ther possible adverse condi-
ions in his New Years caution
hat prosperity could be
checked.
He accompanied his fore.
,astS with some 1859 statistics.
The old years total output, he
,stimated, was about $478 bill
ion, or 6 per cent over 1858
ven when imitation is dis
'ounted. Employment averaged
i5.5 million for the year, up
IS million from 1858, and con-
umer spending was up 5 per
ent in terms of goods pur-
hased.