Indianapolis Times, Indianapolis, Marion County, 10 January 1947 — Page 5

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“penditures, $37,528,000,000; ” $202,000,000.

.

next June 30, “ Wants Exolse Levies Kept

In addition to his $202 million surplus estimate, Mr. Truman made which would increase the 1048 fiscal year

two legislative proposals

surplus to approximately $1,800, 000,000, all ow which he would de

vote to debt retirement if congress

made additional revenue available.

He sald the . additional surplus

funds would be raised by: ONE: Making the post office de. partment self-supporting by hiking postal rates $352,000,000, largely on second class mail, TWO: By extending beyond the June expiration date various war emergency excise taxes on such items as furs, jewelry, electrical appliances, admissions, communica tions and alcoholic beverages.

‘Hardboiled,* Truman Says

Mr. Truman accompanied his budget message with an extraordinary appeal to the public and congress to understand it. it a realistic, tight and hardboiled budget. which simply undertook to

‘carry out government obligations

under programs established by con gress, The biggest proposed figures in millions, are: National defense .... . $11,256 Veterans’ services & benefits 7.343 Interest on national debt ... 5000 International affairs and

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AnaBes ARs yi eats RE be the biggest source of expected government revenue, as usual. Here

{Personal income tax [Corporate “income tax....... Excise (sales) taxes.........

be up in the 1948 fiscal year from the §$18,637,000,000 expected from that source .in the current fiscal year. Corporate income taxes will be. down from the current $9,227,000,000, largely because of repeal of the excess-profits tax. Mr, Truman sald expectation of greater personal income tax revenue In fiscal 1948 was based on expectation of higher, incomes in that year, His experts estimate that the national income—the earnings of all of us—will jump $1 billion to a peak of $166 billion in fiscal 1948

11 ‘Billion for Defense

The budget cut national defense deeply from $14,726,000,000 in. the current: fiscal year to $11,256,000,000 in fiscal 1948, Of this sum the army will get $6,658,000,000 and the navy $4,423. 000,000 for a total of $11,081,000,000, The remainder of the national de|fense appropriation will be spent by other departments and .agencies

vital materials; " ? The combined army-navy figure Is a reduction of $2,431,000,000 from the sum the two departments estimated they needed in the next fiscal year. As the largest budget item, national defense is an ares in which the Republican congress Imay seek further economies. However, Senator Taft's speech |p

last night’ stated that budget re-| ductions should be made “without!

'eutting the. armed services.” | Sees ‘Proper Balance’

Mr, Truman argued that further. jcuts in national defense spending | would be unsafe in,the world as it is. | “Though we expect the United | Nations to move successfully toward {world security,” he told congress, {any cut in our present estimate! {for 1948 would immediately weaken | our international position. This| large part of the budget, in my, | judgment, represents a proper baljance between economy and se‘curity.” The President said the national defense estimate contemplated go{ing ahead with “projects of the

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Demands More Economy

‘purpose this year. A Atomic Energy Gets $444 Million

how much might be saved the tax-

No budget provision was made

ing program recommended by Mz Truman, indicating he does nob expect that project to get under way for at least 18 months.

the national defense part of the budget for 1948 and turned up in the non-agricultural natural resources division... Mr. Truman recommended an atomic energy appropriation of $444 million*and put

‘|his emphasis upon {its peace-time use, But he said it continued to|

be of major military significance,

British Loan Included If the Republican congress is. able to eut national defense spending, it is sure to try to slice down the $3,510,000,000 allotted in the budget to international affairs and finance. . Truman regards practically all of these items as fixed expenses but the G. O. P. is skeptical. Here is how most of the foregoing sum would be spent (in millions) : » British 108M ...ee0eiveiveins .. $1200 Export-import bank loans..,. 730] UNRRA 305 War department iSccupied

Philippine aid [State department .. venvs. 113 Proposed foreign relief. . waran iy 326 This latter sum would be for special assistance .to nations' which cannot support themselves temporarily. They were: not listed but rae was suggested 8s an ex-

DE eublicans threaten to swing the [axe widest among federal em!ployees. Mr. Truman reported that

army and navy research, a sum slightly. larger than for' the same

The budget made no estimate of

payer if the armed services were unified ‘into a single department of national defense. But he said unification would be an important step toward economy and éfficiency.

for the- universal (military) train‘tion facilities,

Atomic energy disappeared from

voountries) 74... .ieiiiidiiinse 645 | 137

i

all citizens ble. to do so to buy United States savings bonds. He recommended that congress re-examine the services government renders to the public or to private individuals to determine what, if any; of them should be put on a pay-as-you-go basis. He said all services could not be so financed. But he suggested as a starter that a ‘reasonable shore” of the cost of providing specialized transportasuch as airways, should be recovered. It is understood that the administration also favors tapping truck operators for a further share of highway costs. : Wants Funds Repaid Realization of Mr. Truman's estimate of a $202 million surplus at the end of fiscal year 1948 depends on congressional agreement to a transfer of corporate funds, The Federal Deposit Insurance Corp. would repay to-the treasury $239,- = 000,000 originally advanced to set it up in business, Mr. Truman also asked congress to repeal existing federal reserve bank authority to make direct loans to industry. Repeal would release to the treasury $140 million in funds now reserved for-.-that purpose, There is no reason to believe congress will refuse to authorize the proposed repayments. But if congress balked, Mr. Tru{man's 1948 fiscal year budget would show a $177 million deficit instead of a $202 million surplus.

0

County Teachers Meet Tomorrow

The second Marion county teachers’

Claypool hotel.

| federal civilian personnel has bees] 2

reduce to 2,300,000 and will be {down to 2,100,000 by the end of fis{cal 1948. Th number of employees in 1939 was 900,000. Mr. Trumén informed’ congress that the vet{erans’ administration, the post of{fice and the treasury, together, em{ploy almost 900,000 civilians now. Debt Already Reduced Mr. Truman reported that the {national debt had been reduced by $20 billion from ifs 1945 peak of $279 billion. And he promised reduction would continue. He urged

held, ; Speakers will include Don Bolt, Brazil, Ind.; Ralph McDonald, Washington, D. C.;. E. M. Dill, former Indiana Boys’ school superintendent; A. D. Beeler, Butler university history professor; Miss Frances Holiday, Butler university education department; Lloyd N. Blue, Indianapolis public schools, and Dr. P. M. Bail, dean, Butler university educational department.

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Increased Spending. Certain, Says Gates (Continued From Page Orie)

self-supporting departments pros pects were for increased needs. | SIX: State office building, and plaza. ‘The governor recommended the program for expanding statehous&* grounds and available office

space be started off with funds for purchase of the necessary ground. This need has been estimated at nearly $2 million,

SEVEN: He pointed out that through the war years the state's highway system has been allowed to deteriorate, With five years of “catching up” 'to do, he said, the program of the highway department promises to be expensive. Less expensive but equally emphasized were Governor'Gates’ requests for improvements In the parole and probation system, management of fiscal affairs, creation of a state revenue department. In the last two instances he offered programs designed, by increasing efficiency, to boost revenue without increasing the burden on taxpayers. -

Commends Labor

On the labor front, the governor commended labor for its war job in Indiana, reminded the legislature that Indiana had been relatively frée from serious labor- -management troubles. He pointed out that he had no desire to see punitive or unduly restrictive labor legislation passed. The expected bill to curb the kuklux klan and similar hate groups was promised by the governor, who

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wholesalers be thrown open to anyone who ‘could qualify under the law, thus ending the possibility of

licenses. ; “ He proposed a series of changes in the convention system of nominating candidates for state office which were regarded as inferring the governor would oppose a direct primary, He suggested tightening of thé proxy system, secret balloting in the convention and reversing the.‘order of nominations as minimum necessary Telorms,

Divorce Suits Half Of Marriage Total

Times State Service

RUSHVILLE, Ind, Jan. 10.— During 1946 there were almost half as many persons filing suits for

inte step, he conceded, ‘might

He' did urge that licensing of |

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activity will. average slightly} in 1946. Any recession : ably would .be a short one and would call for no change in budget policy. ECONOMY" get . . . no department or agency feels that its needs are fully met

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penditures, rather than to include them. It has been necessary for us to be more hard-boiled in mak~ ing many decisions than I like to

GOVERNMENT PAYROLLS — The number of civilian government

workers has been reduced from| war-time peak of 3,770,000 to 2,300,-f

000. A further cut is contemplated, NATIONAL DEFENSE-Any cut below the $11,256,000,000 budgeted

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for the army and navy would weak+ ‘en this country’s position in international affairs. Budget is for a 1,070,000-man - army; 571,000-man navy. Merger recommended to achieve economy and greater effilclency. Universa] military training recommended. VETERANS-—No federal soldiers’ bonus for world war 1I veterans. government must spend 1$7,343,000,000 for present veterans services and benefits. ATOMIC ENERGY~—The big job now is to exploit peace-time uses of atomic energy to the fullest, but ‘it remains a major military significance,” $444 million allotted for

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