The Key West Citizen Newspaper, January 9, 1953, Page 10

Truman Lays 76 Billion, 600 Mill ion $ Budget Before Critical GOP Congress THE BUDGET AT A GLANCE For year ending June 30: 1953 $68,665,000,000 74,600,000,000 sesseryassesernrerene5$ 18, 600,000,000 Deficit Year-end debt ‘BUDGET GENERAL By FRANK O'BRIEN WASHINGTON ( — President Truman today laid a $78,600,000,000 valedictory budget before Con gress, and Republicans promptly cried “fantastic” and promised to cut it sharply. But that was the customary re- action of Democratic Congresses, too, and they frequently fell short of January pledges to trim. away billions of dollars. Only time could tell whether, under the GOP, things would be different. Truman’s estimate of govern- ment spending was for the fiscal year 1954, which begins July 1. The total was four billion dollars higher Aspelrouth’s Shoe Center The Name To Remember In Shoes 604 DUVAL sT. than spending projected by the President for the current fiscal year and 12% billions more than in fiscal 1952, which ended last June .30. The increases were aimost en- tirely for national security pro- grams and pointed, Truman said, toward a 10 billion dollar deficit 18 months from now. Truman called for a big increase in foreign aid, mostly for military help to the nation’s European al- lies. But he also included two bil- lions for economic, rather than military, help. Some members of Congress have been urging that all purely economic aid to foreign countries be halted. The whole foreign aid section promised to be a controversial one. Majority congressional desire, as expressed in a recent survey by The Associated Press, is for re- duced spending abroad. The budget message Truman DIAL 2-2532 JOHN BLACKWELL Austin vick Chevrolet 1950 Fordor Clean sent Congress today, \11 days be- fore he leaves office, is subject to revision by the incoming Eisen- hower administration, which has indicated it will be scrutinized closely and revised, probably start- ing in April. As is customary, the President sent the- 20,000-word message to Congress, and did not read it to the legislators himself. It was about 10,000 words shorter than last year’s. The budget called for expendi- tures in fiscal 1954 equal to $489.15 for every man, woman and child the Census Bureau estimates will be in the United States on Jan, < 1954, half way through the 12- month budget period. The President said: 73 cents out of every dollar in the budget would go toward programs directly re- lated to national security, and 14 cents more toward paying for past wars. The President made no proposals for increased taxes. But he told a Republican Congress whose lead- ers have been talking wistfully of a tax cut: “I do wish to make it clear that in my judgment it would not be wise to plan for a large budget deficit during a period when busi- ness activity, civilian employment, and national income are reaching unprecedented heights.” It would still be “the course of prudence and wisdom” to strive for a bal- anced budget, he added, The dominant feature of the bud- get_was military costs. Truman predicted that expendi- tures for military services in fiscal 1954 would reach $46,296,000,000— exclusive of atomic energy outlays of $2,700,000,000. That compares with $44,380,000,000 in the current fiscal year and $39,727,000,000 in fiscal 1952. The President indicated that atomic energy expenditures would soon result in more weapons, with atomic plant expansionout ended. Altogether, the Presidént said, enough from City Loan Company to finish the job?” © When you're in need of concrete help, just call City Loan Company. They'll smooth things out for you with ready cash. CITY LOAN CO. OF KEY WEST 524 SOUTHARD ST. DIAL 2-5681 JANUARY Clearance SALE Tudor A Real Buy Fordor Riviera Radio, and w.w. Tires ALL NEW CAR TRADE-INS The Finest Selection In The South... Guaranteed ‘o Suit You and Your Purse 1946 949 Pick-Up—Good Conv, Radio, Nice JOHN PEARSON Fordor—Radio, Seat Covers, Good Page 12 national security programs would add up to $57,300,000,000—73 per cent. of the predicted outlay for the year. That included military services, international security and foreign relations, atomic energy, defense production and écoonmic stabilization, civil defense and merchant marine activities. “This is ar expensive program,” Truman said, “but our national security depends on it...until the free world is secure against’ the Communist menace.” An additional 11 billions, or 14 per cent of the budget, would largely be chargeable to past. wars. This was for interest on the na- tional debt and veterans’ services and benefits. All other government expendi- tures in fiscal 1954, Truman said, would come to $10,300,000,000, about the same as in the current fiscal year and $1,300,000,000 more than in fiscal 1952. This amounted to 13 per cent of the total. This was the division of military services spending: Air Force $17,47,000,000; Army $15,358,650, 000; Navy $11,804,000,000. Truman said this was to bring the Air Force in fiscal 1954 up to 133 wings of its 143-wing goal, the Army to 2 divisions, the Navy to 904 com- batant vessels with an air arm of 16 carrier groups, and the Marines to three divisions with an air arm of three wings. In the face of expressed con- gressional hostility to increasing foreign aid outlays, Truman said mutual security and foreign rela- tions costs in fiscal 1954 should increase $1,826,000,000 from expen- ditures in the current fiscal year, to $7,861,000,000. He asked that appropriations for mutual security be increased by $1,100,000,000 to $7,600,000,000. However, over-all, the new bud- geet called for eight billion dollars less in new appropriations than Truman asked a year ago. It predicted a shrunken deficit this year, but a deficit of nearly 10 billion dollars in fiscal 1954, And, the President said, if things go according to his estimates and plans, the national debt by 1954’s end will be but a billion dollars short of the legal limit of 275 bil- lion dollars. Budget messages, looking a year and a half into the future, are al- ways a bundle of estimates. And Truman acknowledged at the out- set of his message today that cir- cumstances made this one subject to even more than usual revision. “The President-elect,” Truman said, “will be entirely free to pro- Pose changes.” But for this spending blueprint he shouldered the entire responsi- bility. Besides the estimate that feder- al expenditures would climb to $78,600,000,000 in the coming fiscal year, the highlights of the budget message were: 1. The deficit next June 30, at the end of this 1953 fiscal year will be about $5,900,000,000, instead of the previously estimated 10 bil- lions. This reflects a slow down in_rearmament spending. of fiscal 1954, Truman estimated, spending during the year. At the end of fiscal 1952, last June 30, the year’s deficit was four billion dollars. The President thus | predicted a deficit increase in the | current fiscal year of nearly two billion dollars and another four | billion dollar jump in the next fis- eal year. ° 2. The public debt, which stood at 259 billion dollars at the end | of fiscal 1952, will increase to 264 billions by next June 30, and to 274 billions by June 30, 1954. The legal limit on the public debt of 275 billions can be changed by Congress if it wishes. 3. The government will need $72,900,000,000 in new appropria- tions from Congress in fiscal 1954. This compares to $80,800,000,000 -Truman requested last January, ANY AUTOMOBILES THING THE KEY WEST CITIZEN But by June 30, 1954, at the end | the deficit will be $9,900,000,000, | reflecting .peak defense buildup | Friday, January 9, 1958 ‘and to $92,90,000,000 requested the year before, in the fiscal 1952 bud- get message. 4. The government’s income tax receipts except for trust funds) will be about the same this fiseal year and in fiscal 1954 — $68,697,000,000 in fiscal 1953 and '$68,665,000,000 in fiscal 1954. Reve- nue in both years would thus be approximately 6% billions above receipts in fiscal 1952. This budget does not take effect until July 1, and runs for the 12 months after thet. Law requires the President to submit his budget nearly six months in advance of its effective start. PAKISTAN STUDENTS PROTEST FEE INCREASE KARACHI, Pakistan (®—Students protesting a 45 per cent increase in tuition fees clashed here with Karachi police, who fired shots to put down violent rioting. At least six persons were reported killed and 50 were hurt. The students overturned and set ablaze the automobile of Home Minister Mushtaq Hemad Gurmani who went into the streets in aB effort to pacify them. Many af- rests were made. 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