Evening star., 1961-01-17
Financial Plan for 1862

fIn0ncI0I Plan tor 1867
President Eisenhower has remained
faithful to his philosophy of prudence
In fiscal management and his confidence
IN the basic strength Of the national
economy in presenting his final Federal
budget, for fiscal 1862, to the Congress.
Making the point, as he has done before,
that the budget is financial plan"
rather than simple prediction, he has
submitted estimates and legislative pro-
posalS that would yield surplus of.
approximately SIS billion for the IL
months ending June 80, 1862.
This Is not a niggardly budget,
either IN estimated expenditures or
receipts. Totals in both categories are
at new high levels for any of the eight
years Of Mr.. Eisenhower's two-term
administration. Spending Is calculated
at $500 billion, up 50 billion from this
year, with major national security needs
accounting for the highest total since
the Korean war period. On the revenue
side, the President estimates Federal
receipts of $82.3 billion-reflecting.
sizable Increase Of $3.3 billion over
fiscal 1861.
Mr.. Eisenhower is aware, of course,
that this final version of his own concept
OF financial planning will be at the
mercy OF a new administration and
new Congress Of the opposite party.
He is aware, too, that the Democratic :
platform and campaign promises
indicated strong support for increased
spending, particularly in certain do
mestic welfare categories that are not
allotted substantially higher figures In
his own budget. In fact, 1T was In
seeming reference to this opposition
viewpoint that he emphasized that "the
test Of necessity rather than desira-
bility" had been applied to his own
spending estimates, and that he
inveighed against running the Govern
ment "by credit cards (and) improvi-
IDENTIFY spending today at the expense
Of tomorrow"
On another front, too, Mr.. Eisen-
hover no doubt is aware Of the potential
pitfalls awaiting his financial plan.'AS
he did unsuccessfully last year, the
President has recommended that postal
rates be raised to Offset the wnopping
deficit Of the mail service-in this case
by enough to produce an extra $160
million this year and an added $843
million in fiscal. 1862. Similarly, he
asked for increases in the gasoline tax
and higher levies on aviation fuels
None Of these has drawn majority favor
on Capitol Hill.
1t Is on the revenue side, however,
that Mr.. Eisenhower's estimates may
face the sharpest attack. It is there that
he takes his position of unshaken con-
fidence in the current state of the,
economy and the tax yield which it
should produce for the fiscal year in
question. The figures, he said, are based
on an outlook for higher production,
employment and income as calender
1861 progresses, and he promises in the
Economic Report to be released
tomorrow detailing Of evidence that
gross national product and personal
incomes will rise to new high levels
this year. Secretary of Treasury
Anderson supported this optimism by
suggesting that the estimates may well
prove to be conservative" and that the
economic advance now in prospect
should readily produce" the increases
in Federal revenues assumed in the new
budget. Other quarters, including Demo-
cratic spokesmen, have expressed a
contrastingly gloomy view on the state
of the economy.
Federal budget-making, or fnan-
cial planning, is an intricate and diffi-
cult job at 'best-with its II months
time lag before the final returns are in.
international tensions, honest differ
ences Of opinion on domestic economic
trends and change in administrations,
all contribute an element of doubt
toward the accuracy or the fate of this
particular budget. But as with all blue
prints it can be changed-if necessary
or desirable in the national interest.
Vassor's Tooth
Vassar College, celebrating It's Tooth
anniversary, has seen-and has been a
leader in-revolutionary changes In
female education" since its founding
on January 10, 1861, by Matthew Vassar,
Poughkeepsie businessman with
novel idea. The idea, radical at the