| Show I We Hope Congress Has Courage and Wisdom to Drive for Economy Now Glow There are increasing signs of congressional congressional congressional con con- I gressional concern over federal finances Some Democratic members of the senate appropriations committee are reported drafting a bill to slice about off federal expenditures Congressional Congressional Congressional tax experts reported recently that revenue in the next fiscal year would be substantially less than President Truman had estimated adding to the deficit danger A number of prominent Democrats are kicking over the traces on the administration administration administration admin admin- program of spending and taxation tax tax- Senator Tydings of Maryland said he believed expenditures could and should i be cut enough to avoid a 3 tax increase I 1 Senator McCarran of Nevada said I There must be a reduction in normal I government expenditures Generally these sentiments were echoed by Senator George Congressman Doughton Senator Russell Senator Maybank and other Democratic leaders Vocally at least there is plenty of support in congress for a program of federal retrenchment But there is still doubt that when the chips are down the economy advocates will stand firm Most economists agree that a tax in increase increase increase in- in crease at this time when the economy is teetering between good and bad times would be unwise There are two t other alternatives One is to accept deficit financing While this would be preferable preferable preferable prefer prefer- able to a retarding business-retarding tax increase it would be dangerous as establishing the precedent of red ink federal financing during peacetime and in a period of prosperity prosperity prosperity pros pros- and high governmental revenue Senator Byrd put it very well when he said If we cant can't or wont won't run this government on a balanced budget now I doubt that we shall ever return to sound financing To you and me that means our credit would be destroyed and our system of government doomed The best course is reduction of federal expenditures so as to bring the budget for the next fiscal year into balance With fixed costs for interest on the public public public pub pub- lic debt veterans benefits federal contributions contributions con con- to retirement funds federal I public works commitments and grants- grants in-aid in programs amounting to more than annually the job of trimming federal expenditures is not easy A recent report of the committee for economic development on federal tax and expenditure policy should help congressmen congress congress- men in charting a safe course One of or orthe the major points made is that the government government govern govern- ment is trying to do an unprecedented number of things at once The question is then asked Can we afford to expand government activities so rapidly and on so many fronts at once Or are we reaching reaching reaching reach reach- ing the margin where the economic and social costs of such activities outweigh their benefits In other words the issue must be faced squarely as to whether our financial financial financial finan finan- cial picture does not require a moratorium moratorium moratorium morato morato- on new federal spending proposals no matter how worthy The committee for economic development development development develop develop- ment also contends that the administrations administration's administrations administration's administrations administration's tion's budget procedures stand in need of reform and that there is still bad organization deficient procedures and the lack of incentives to do things in the least expensive way in the federal The committee further commends commends commends com mends the report of the Hoover commission commission commission commis commis- sion for early consideration and appropriate action Of course concern over zooming federal federal federal fed fed- eral expenditures is not new It has been expressed time and again with again with rarely any result in actual economy There are two reasons to hope that this time there may be some economy achievement One is that the concern is bipartisan The Theother Theother Theother other is that we have the Hoover program program program pro pro- gram for federal retrenchment and re reorganization reorganization reorganization re- re organization ready for use We Ve hope the congress has the courage and the common sense to strike for federal federal federal fed fed- eral economy now while the iron is hot |
