Evening star. [volume], January 16, 1957, Page A-9, Image 9

About Evening star. [volume] (Washington, D.C.) 1854-1972

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BUDGET MESSAGE:>
Eisenhower Outlines
1958 Spending Plans
Following is a partial text of President Eisenhower's
budget message to Congress today outlining his plans to spend
$71.9 billion in the fiscal year beginning next July 1, together
with his legislative recommendations to the new Congress:
To the Congress of the United
States:
I am presenting with this mes
sage my recommended budget for
* the United States Government
for the fiscal year 1958. which
begins next July 1.
This is the fourth budget
which I have transmitted to the
Congress.
In my first budget message—
that for the fiscal year 1955—1
emphasized the administration's
determination to chart a course
toward two important fiscal goals
—balanced budgets and tax re
ductions.
Reductions in spending evi
denced in the 1955 budget made
possible a large tax reduction
and tax reform program.
The 1956 budget was balanced.
The 1957 budget will be bal
anced.
A balanced budget is proposed
for 1958.
I believe this policy of fiscal
integrity has contributed signifi
cantly to the soundness of our
Nltion's economic growth and
that it will continue to do so
during the coming fiscal year.
Objectives Outlined
This budget is for the first fies
cal year of my second term in
office. In making plans for the
coming year, I have been guided
by the following national ob
jectives:
1. Peace, justice, and freedom
for our own and other peoples:
2. Powerful armed forces to
deter and. if need be, to defeat
aggression:
3. A healthy and growing
economy with prosperity widely
shared;
4. Enhancement of individual
opportunity and the well-being
of all our people:
5. Wise conservation, develop
ment, and use of our great nat
ural resources:
6. Fiscal integrity:
7. A well-balanced choice of
programs at home and abroad; >
and
8. Increasing international
trade and investment essential
to the growth of the economies
of the United States and the rest
of the free world.
We have made considerable
progress toward these goals. We
will continue this progress in the
years ahead.
Budget Policy
Today, almost 12 years after
World War 11, the United States
has demonstrated that it is pos
sible to sustain a high employ
ment economy independent of
war and continually unbalanced
Federal budgets. Adjustments to
changing economic circum
stances have been and are being
made successfully. Productivity
and living conditions have im
proved. With sound public and
private policies, the prospect for
continued economic growth is
bright.
Attainment of that goal is pos
sible only with prudent manage
ment of the Government's fiscal
affairs. Our Federal budget must
contribute to the Nation's finan
cial stability and to the preser
vation of the purchasing power
of the dollar. Maintaining a
sound dollar requires of us both
self-discipline and courage. At
a time like the present when the
economy is operating at a very
high rate and is eubject to in
flationary pressures. Government
clearly should seek to alleviate
rather than aggravate those
pressures. Government can do its
part. But business and labor
leadership must earnestly co
operate—or what Government
can do in a free society at a
time like this will not prevent
inflation.
N'o Tax Cut in Sight
For the Government to do its
part in "the coming year, taxes
must be retained at the present
rates so that receipts will exceed
budget expenditures and the
public debt can be further re
duced.
Expenditure and Appropriation
Policy. While taking present
economic conditions into con
sideration. the budget must
reflect the general responsibili
ties of a Government which will
be serving 172 million people in
the Fiscal year 1958. In the face
of continuing threats to world
peace, our collective security
must be strengthened through
alert international policies and
a strong defense. Progress to
ward greater equality of oppor-.
tunity for all of our people as
well as toward a balanced devel
opment and conservation of our
national resources must go for
ward. Emphasis must continue
upon promoting, through pri
vate enterprise, the development
and productivity of our economy.
Schools, Roads, Homes Needed
We must move forward in some
areas of investment while we
hold back in others. For exam
ple. the needs for schools, high
ways, and homes are so urgent
that I am proposing to move
ahead with programs to help
our States, cities, and people un
dertake such construction at a
prudent rate. However, in view
of the present active competi
tion for labor, materials, and
Where it comes frm
The BUDGET
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// MMul mini Inn ,<• 290 1
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II ;
equipment, I am not recommend
. ing some other desirable con
• structlon projects, and I have
asked thq head of each Federal
, agency to watch closely the tim-;
;ing of construction and to post-!
pone work which can be approp
; riately put off until a later date.
It is also important to hold
to a minimum any increase in
Government personnel in the
/coming period.
| ... About seven-tenths of the
estimated increase between 1957
’ and 1958 is for the military
functions of the Department of
1 Defense, reflecting the higher
• costs of producing, operating.
■ and maintaining the complex
i new weapons and equipment be
ing delivered in growing quanti
ties to our defense establishment.
! Other major increases are for
the Department of Health, Edu
i cation and Welfare including
my proposal for aiding school
construction, and for the Atomic
. Energy Commission.
The figures contained in this
! budget for the fiscal years 1957
i and 1958 are not precisely com
parable to the actual figures for
prior years. Under the provisions
of legislation enacted last year,
the financial transactions for
the greatly expanded Federal
aid highway program are in
cluded in a self-liquidating trust
fund and are not in the budget
totals.
Revenue Policy.—lt is my firm
belief that tax rates are still too
high and that we should look
forward to further tax reduc
tions as soon as they can be
accomplished within a sound
budget policy. . . However, the
reduction of tax rales must give
way under present circumstances
; to the cost of meeting our urgent
national responsibilities.
For the present, therefore. I
ask for continuation for another
year of the existing excise tax
rates on tobacco, liquor, and
• automobiles, which, under pres
ent law, would be reduced next
April 1. I must also recommend
that the present corporate tax
rates be continued for another
year. . .
Relief for Small Business
In the area of taxation. I am
especially interested in the prob
lems of small business. . . . Some
• relief in the tax burden affect
ing small business . . . which
will give help with a minimum
loss of revenue should have early
consideration by the Congress.
The present estimates of
budget receipts for 1958 are
based on the asumption that the
, Nation will continue to have a
high level of business activity
with increasing national income,
and that the present tax rates
will be continued. They are the
best estimates we can make at
this time, but, since they relate
to a period 6 to 18 months away,
significant changes may take
place before the fiscal year 1958
is ended.
Debt Policy The successive
reductions in the debt from 1956
through 1958 are modest in
relation to its total size. Never
theless, I hope that these reduc
tions, plus the collection of cor
poration tax payments on a
more nearly current basis . . .
will make it unnecessary to ask
the Congress again for a tem
porary increase in the legal
limit of $275 billion to cover
seasonal borrowing during the
coming fiscal year. . . .
Receipts front and payments
to the publir—The restraint on
inflationary presures which will
be exerted by the budget sur
plus in the fiscal year 1958 will
be reinforced by net accumula
tions in the trust funds which
the Government administers.
These ‘trust fund accumulations,
such as those for highways and
for old-age and survivors and
disability insurance, are the ex
cess of current receipts over cur
• rent payments. . . . The receipts
from the public are estimated to
exceed payments to the public
i by $3 billion in the fiscal year
1958
i; Budget Programs
And Performance
By far the largest part of the
• budget for the coming fiscal
'year. 63 per cent, will be devoted
to maintaining and improving
i our own defenses and to 1
strengthening the defenses and
economies of other nations in
/the interest of collective security
i and world peace. Civil benefits
will account for 24 per cent of
• budget expenditures: interest, 10
per cent; and all other opera
• tions, administration, and con
tingencies, 3 per cent.
Protection, including collective
. security.— As a simple matter of
self-preservation, we must main
• tain our own strength and
• promote world stability by help
ing to build up the strength of
friendly nations. At the samei
time, we must actively advance
• our other efforts for lasting,
i peace and Inform the world in
all appropriate ways of our
[ peaceful alms.
'! The new and more powerful
weapons which are being de
livered to our armed forces in in-
BALANCED BUDGETS
ACHIEVED IN HALF
OF POSTWAR YEARS
Ts President Eisenhower's
forecasts are borne out. the
Government will have a 50-
50 record for balanced budg
ets over the 12-year period
dating from 1947.
Former President Truman
came up with surpluses in
fiscal 1947, 1948 and 1951.
Mr. Eisenhower produced
i Ins first surplus of $1.6 bil-
I lion in fiscal 1956, which
ended last June 30.
. His new budget estimates
sent to Congress today indi
cate a surplus of $1.7 billion
j next June 30 with prospects
, of operating $l.B billion in
J the black in the new 1958
fiscal year starting July l.
' creasing quantities and varieties
are much more costly to produce.
, operate, and maintain than the,
; weapons they are replacing/
Furthermore, we are now en
; gaged in the development of a
whole new family of even more:
advanced weapons for all the,
services. . . . During the transi- !
/tion, we must continue to pur
chase enough of the current
! types to preserve our readiness
j until the effectiveness of the ad-|
; vanced weapons is demon-;
strated in tests. . . .
The introduction of new equip- ■
1 ment and weapons with vastly ■
greater combat capability is also
having a powerful impact on
! concepts of military strategy,
1 tactics, and organization. The
; combat power of our divisions,
wings, and warships has in
creased to such an extent that it
is no longer valid to measure
military power in terms of the
number of such units. . . .
Nuclear Expansion Set
Our nuclear weapons and our!
ability to employ them constitute'
the most effective deterrent to;
an attack on the free nations.
We shall continue to expand our
• nuclear arsenal until an agree
ment has been reached for re
duction and regulation of arma
ments under safeguarded in
spection guaranties.
At the same time, we are In
creasing the portion of the
production of fissionable ma- 1
' terials allocated to peaceful uses'
at home and abroad and we look!
forward to the day when all pro- '
duction may be used for peace
ful purposes. . . .
World events continue to dem- '
onstrate the value of our pro
grams of mutual assistance. Con
tinued assistance, both military
and economic, to friendly nations
will provide the essential margin
beyond their own resources need
ed to support and strengthen
their defenses and their econo
mies. The intensified world-wide
conflict of ideas also requires a
further increase in our programs
of international information.
Civil Rights During the
past four years, the Government
has acted affirmatively to ad
vance to everyday well-being of
our people by helping to improve
their economic opportunities,
helping to provide safeguards
against economic and physical
hazards, and helping to build
needed public assets. The Gov
ernment's leadership in assisting
the people to satisfy their own
needs been so exercised that '
steady progress has taken place
without paternalistic interfer- i
ence. M
In the fiscal year 1958 we shall '
continue to move forward with '
many civil benefit programs al- 1
ready established by law’. 1
To aid agriculture in its ad- 1
justments to new technologies !
and to changed world production
and consumption patterns, the
soil bank program will help re- 1
duce the production of surplus '
crops. Additional marketing re- '
search and service activities will
develop new markets and new}
uses for our farm products.
Watershed protection, aid to low- ,
income farmers, and assistance ,
in overcoming the problems of .
drought, wind erosion, and floods
will be expanded. . . .
Increased expenditures will
be made for sound programs of j
health research and grants for ,
hospitals, clinics, and diagnostic i
and rehabilitation centers. . . . ;
Interest—Expenditures for in- !
terest arc estimated to rise SIOO
million to $7.4 billion in the ,
fiscal year 1958, despite reduc- i
tions in the public debt in 1956,'i
;1957 and 1958.
I , . , —■ i
Legislative Program j(
This year I discussed only a|!
few of the administration's leg- !
islative recommendations in the ,
State -of - the - Union message/
Therefore, this part of the ,
i budget message is devoted to a ,
discussion of other major pro- 1 ,
posals for legislation on which ,
I recommend that the Congress ,
take action during the present ,
session. The legislative program
i is one on which the Congress,j
and the Executive agencies •
■ should be able to work together
successfully. ... ,
In the immediate future, ij
shall forward a message empha
sizing the urgency of enactment;
of an adeqaute program of Fed-j
eral aid for school construction.;
and a message on my proposals
for amendment of our immigra-j|
tion laws. . . . This budget pro- .
vides for the start of a four-year !
program of aid for school con- '
struction.
! Two areas need earnest and j
prompt attention with a view
to determining whether new na
tional policies should be adopted
in the light of reports and recom
mendations now pending in the
Congress. These are numerous
detailed recommendations of the
second Hoover Commission which
the committees were unable to
consider prior to adjurnment of
the 84th Congress and the pro
posals made by the Advisory
Committee on Transport Policy
and Organization. . . .
Health Budget Un
Substantial budget increases’
are recommended for existing |
activities which will improve the’
health of the American people i
The Congress is also urged to;
enact legislation under which 1
the Federal Government can
help the medicai and dentnl
schools to build moie and better
teaching, as well as research,
facilities to prevent the already
acute shortage of trained medl-
How Budget Balances
By the Associated P^ess
The following official resume compiles President Eisen
hower's new budget proposals with estimates for the. current
fiscal year ending next June 30 and with final figures for the
year ended June 30. 1956 <in millions of dollars)•
Summery of Budget Receipts and Expenditures
Description:
i « . i IM« ltt*7 IPSH
Budget Receipts A«*lu»l Estimate Estimate
Individual income taxes $35,334 $38,500 $41,000
Corporation income taxes 21,299 21,400 22,000
Excise taxes 10,004 10,691 11,071
Employment taxes 7,296 7,750 8,420
Estate and gift taxes 1.171 1,380 1,475
Customs 705 775 800
•Miscellaneous receipts 3.012 2,991 3.283
Deduct—
Transfers to trust funds 6,971 8,979 10,273
Refunds of receipts 3.684 3.880 4.156
Net budget receipts 68,165 70,628 73,620
Budget Expenditures
Major national security 40,845 41,303 43.621
International affairs and finance „ 2,151 2,767 2.878
Veterans’ services and benefits ... 4.804 4.906 5,085
Labor and welfare 2,778 3.035 3,542
Agricultural, agricultural resources 9.060 9.560 8,123
Natural resources 1,361 1,649 1.836
Commerce and housing 5,958 6,574 6.904
General government 1,633 1,873 1.455
! Interest .. . : 6,846 7.260 7,360
Allowance for contingencies 200 400
Gross budget expenditures 75.436 79,127 81,203
Dedbct applicable receipts 8,896 10,227 9.396
Net budget expenditures 66,540 68,900 71,807
Budget surplus 1,626 1,728 1,813
•Includes taxes not otherwise classified.
________________________________
Where Money Will Go
By the Associated Press
The following official table summarizes first by functions
end then by Government subdivisions the way President
Eisenhower's budget today projects the spending of $71,807,-
000,000 in the fiscal year 1958, beginning July 1, together with
comparative figures for the current fiscal year U 957) and
! the one ended June 30, 1956 <in millions of dollars):
IlrftrriiHlon 11t.%7 t!».»8
By f unction Actual Estimate Estimate
Major national security $40,641 $40,965 $43,335
International affairs and finance 1.846 2.382 2,444
Veterans’ services and benefits 4,756 4.851 5.027
Labor and welfare 2,776 3.032 3.538
Agriculture and agriculture resources 4,913 4.701 4,965
Natural resources 1,104 1,371 1.538
Commerce and housing 2,028 2,269 1,748
General government . 1.629 1.870 1.451
Interest 6 846 7.260 7,360
Allowances for contingencies 200 400
Net budget expenditures 66,540 68,900 71,837
B.v Agency
Legislative branch 85 109 122
The judiciary 37 40 44
Executive Office of the President 10 11 12
Funds appropriated to the President:
Mutual security 4.201 4.102 4.356
Other 272 35 89
’rdependent offices:
Atomic Energy Commission 1.651 1.940 2.340
Veterans Administration 4.731 4,857 5.068
Other . ... 601 1.456 386
»'eneral Services Administration 523 690 654
lousing and Home Finance Agency 39 719 391
Department of Agriculture 5,177 5,152 5.330
Department of Commerce 1,293 644 772
Dept, of Defense—Military
functions 35,791 36.000 38.000
Dept, of Defense—Civil functions . 573 649 700
Dept, of Health, Education and
Welfare ... 2.071 2.361 2.831
Department of the Interior 512 652 704
Department of Justice 216 214 226
Department of Labor 412 409 418
Post Office Department 463 459 58
Department of State 142 184 230
Treasury Department ... 7,719 7.992 8,132
District of Columbia < general fund > 22 27 43
Allowances for contingencies 200 400
Net budget expenditures 66,540 C 8.900 71.807
cal manpower from becoming
critical. It is also time to enact
the necessary statutory basis for
expansion and improvement of
voluntary health insurance plans
under which smaller insurance
companies and non-profit as
sociations could pool their
resources and experience.
In the welfare field, additional
funds are likewise provided in
the budget, and the Congress is
urged to enact a new program
of grants to the Stales to help
fight juvenile delinquency.
Social Legislation Mapped
In lecent years, a succession
of legislative enactments has
moved a long way toward the
goal of universal Social Security
coverage, but there are a num
ber of collateral steps which will
add much to the meaning of
our Social Security system as a
whole. In part, these steps can
be taken by budgetary action,
for example, by giving particular
attention to the needs of the
rapidly increasing number of
older persons in our society.
Other steps will require legisla
tion. First, the unemployment
insurance system should be ex
tended and improved. Similarly,
congressional action is recom
mended to extend the Fair Labor
Standards Act to additional
workers. . . . The Federal 8-hour
laws should be revised and
brought up to date and legisla
tion should be enacted to assure
j equal pay for equal work. A
I modest program of grants under
which the States can increase
their efforts to improve occupa
tional safety should be initiated. 1
Likewise, legislation should be;
i enacted to require the registra
tion of employe pension and wel-j
fare funds to protect the in
terests of beneficiaries.
■ Os particular importance are
.recommendations to protect and
| foster the initiative of the small
j businessman. The Small Business
Act should be extended. In order j
that small business may have
I better opportunity to secure
adequate financing, tssups of
I securities up to $500,000 should
be exempted from the regular;
registration provisions of the 1
Securities Act of 1933. Similarly.!
the Congress should enact legis
lation providing for notification
to the Federal Government of
proposed business mergers, and
should amend the procedural
provisions of the anti-trust laws
to facilitate their enforcement..
Wage reporting for income tax,
and Social Security purposes
should be consolidated and
simplified. ...
Aid to Labor Surplus Arras
I repeat mv recommendation
of last year for the prompt en
actment of appropriate authority
[Under which communities can be
[assisted in solving bnsic problems
iof persistent unemployment.
Wr should not let another year
i'.'o by without taking the neces
sary action to place the Post
Office on a pay-as-you-go fiscal
basis. The oaEe for adjusting
postal rates needs no further
justification. ...
Recommendations concerned
with proposed legislative changes
in our housing laws will be found
In the section of my budget
analysis carrying the heading
“Commerce and Housing.”
(The analysis included the
following:
Aids to Private Housing.—
The Government encourages
private housing primarily
through insurance of mort
gages by the Federal Housing
Administration and guaranties
of loans by the Veterans Ad
ministration. Increased de
mands for credit for other pur
poses last year made these in
sured and guaranteed mort
gages unattractive to many
private lenders at the maxi
mum interest rates then pcr->
mitted. As a result, many
potential buyers were unable to
borrow for the purchase of
homes, and as the demand fell
off, builders curtailed the num
ber of new homes begun. To
bring interest rates on insured
mortgages into line with mar
ket rates of interest, the Fed
eral Housing Administration
has permitted adjustments in
all rates which were not al
ready at their statutory ceil
ings. Legislation is recom
mended to permit similar in
terest rates on loans guar
anteed by the Veterans Ad
ministration. so that more
veterans may obtain these
loans. . . . Legislation is also
proposed to adjust the inter
est rate on direct loans so as
to keep it the same as on
i guaranteed loans, in conform
| ity with past practice.)
Farm Law Changes Asked
With respect to farm legisla
tion, certain changes are being
recommended in the corn pro
gram. Farmers who use all the
wheat grown on their own farms
for seed, feed, or food should be
exempt from marketing quotas
and penalties. The basic author
ity for disposal of surplus farm
commodities for foreign curren
cies . . . should be extended for
1 year and an additional $1 bu
llion of authorization for lasses
,under this title should be pro
vided. Legislation should also
be enacted authorizing the bar
ter of nonstrategic Government
owned agricultural surpluses to
the nations of Eastern Europe.
... I urge once again the
i Prompt enactment of legislation
which will enable the Fryingpan
'Arkansas multiple-purpose dam
project to get underway in the
fiscal year 1958.
| I also recommend prompt
action by the Congress to de
cide how the Niagara power proj
ect can best be developed.
Gas Rill 17rged Again
In returning the Harrls-Ful
bright, natural gas bill to the
84th Congress without my ap
proval I slated that legislation
conforming to the basic objer-
I tlves of thut bill was needed. 1
am still of that opinion. If Is
■ essential that consumers of
natural gas be protected We
imusL endeavor to make sure
EARTH SATELLITE,
ANTARCTIC COSTS
TOP S4O MILLION
By the time the niuch
i heralded International Geo
physical Year is over, at the
end of 1958, the United
States will have spent more
than S4O million in the
cause of science.
This was revealed today
in the President’s budget for
fiscal 1958. The budget
shows that this country has
poured $38,729,320 into its
two chief IGY projects—the
space satellite program and
the Antarctic “Operation
Deepfreeze.’’
Added to this figure—rep
resenting expenses of the
National Science Foundation
—are unspecified sums out
of Defense Department and
Atomic Energy Commission
budgets.
The satellite project is
costing an estimated sl4?-,
million this year.
President Interested
In Judicial Reports Plan
’ By MIRIAM OTTENBERG j
President Eisenhower today
informed Congress he is "deeply
interested” in a suggestion that
the Chief Justice of the United
States be invited to address Con-;
gress annually on the work of
the judiciary.
At the same time, he urged
I Cong ress to carry out the pro
posals of the Judicial Confer
ence of the United States' for
additional Federal judgeships.!
The Conference has recom
mended 35 more District court
I Judgeships, two more on the
circuit bench and permanence
for four temporary judgeships/
j The President also proposed
two measures affecting the old
er judges. One, indorsed bv the
Judicial Conference, would re
quire chief judges of District and
circuit courts to give ur> their
administrative duties at the R ge
of 70.
The other recommendation
‘would clear the wav for apooint
ment of another judge when a
Federal jurist reaches 70 and
chooses not to retire. Under this
that there will be continued ex
ploration and development of
‘adequate field supplies of gas,
jand that producers' sales prices
'are arrived at fairly and com
petitively. In this way, and with
[authority vested in the Federal
Power Commission to regulate
interstate pipelines as to the
price at which sas may be
iChareed as an item of cost in
[fixing their rates, the price to
ithe public will be fair. Legisla
tion freeing gas producers from
(public utility-type regulation is
essential if the incentives to find
and develop new supplies of gas
/are to b° preserved and sales of
gas to inter-Rtate markets are
not to be discouraged to the
detriment of both consumers and
> producers, as well as the national
5 interest. . . .
i Chief Justice Report
1 Although it is not within mv
4 province to make any recom
mendation, lam deeply interested
in the suggestion which has beer
made that, the Congress should
consider inviting the Chief Jus
tice of the United State to ad
dress the Congress annually on
the work of the Judiciary and to
present the recommendations of
the Judicial Conference.
I recommend again that the
Congress enact suitable legis
lation providing for home rule in
the District of Columbia.
Statehood
I also recommend the enact
ment of legislation admitting
Hawaii into the Union as a State,
and that, subject to area limita
tions and other safeguards for
the conduct of defense activities
so vitally necessary to our Na
tional security. Statehood also be
conferred upon Alaska.
T.ie platforms o r both major
parties have advocated an
amendment of the Constitution
to insure equal rights for women.
I believe that the Congress should
mak° certain that women are
not denied equal rights with men.
;I believe that the Congress should
! propose a constitutional amend
ment lowering the voting age in
' Federal elections. ...
Seventy-two nations have now
signed the charter of the In
ternational Atomic Energy Ag
ency, which was established un
der the auspices of the United
Nations. Prompt action by the
Congress is needed to authorize 1
full participation by the United
States in the work of this agency
* Other Items Listed
* The remaining items to which
■ special attention should be di
? rccted are 1 1 > authorization to
* the President to make awards for
distinguished civilian achieve
-5 ment. <2 > establishment of a
‘ Federal advisory commission on
1 the arts, 1 3) acquisition and
‘ maintenance of an official resi
r dence for the Vice President and
‘ <4> amendment of the Govern
s ment Corporation Control Act to
provide for budget and audit
’ control over Government corpor
ations which are authorized, di-
Jrectly or indirectly, to obtain or
utilize Federal funds . . .
, It is always difficult to make
1 plans nnd forecast expenditures
_'a year or more in advance This
' is particularly true when Historic
‘ events are taking place in East
ern Europe when United Nations
. forces are deployed In the Mid-
I die East, when uncertainties
‘‘abound in other parts of the
“world, and when in our rwn
[land economic change Is con
tinuous. This budget has taken
- Into account present conditions
c and developments which today
. appear most likely at home and
i abroad . It is a carefully
- balanced budget—balanced In its
I I receipts and expenditures, bal
s anced In its choice of orograms.
fff consider it well adapted to the
e needs of the present and the
e’future.
THE EVENING STAR Washington, D. C. *
WEDNESDAY. JANt’AKT 16, H»J
S3B Billion Asked to Run
Military Establishment
Continued From First Pagej
fleet and replacing it will be the;
all-jet B-255. These heavy;
bombardment wings also are!
being increased from 30 to 45
planes each.
The fighter planes which are
employed to escort the slower
B-36s will be moved out. Be
cause of rapid advances in;
guided missiles, tactical aircraft
used for support of ground troops
will be reduced as the Army takes
over more of this work.
Nuclear 'Flat-top' Set
The world’s first nuclear
powered aircraft carrier will be
started for the Navy, which has
earmarked $3lO million for it.
Four more atomic submarines
will be laid down, three of them
designed to fire guided missiles.
Among the 19 new' ships and 12
{proposal, when a judge does not 1
retire at 70 and the Judicial
Conference certifies the need for
another judge, the President
W'ould be authorized to appoint
jan additional judge. When the
;judge over 70 either dies or re
tires. the vacancy thus created
would not be filled.
First Comment on Proposed
This budget message is the
first time the President has com
mented officially on the proposal’
for periodic addresses to Con
gress by the Chief Justice. His
comment, which appears in a
■ section of the message devoted
/to "other major proposals for
[ legislation on which I rccom
. mend that the Congress take ac
, tion during the present session,";
. follows:
I "Although it is not within my
. province to make any recom
, mendation, I am deeply inter
ested in the suggestion which
lias been made that the Congress
1 should consider inviting the
Chief Justice of the United
j States to address the Congress
1 annually on the work of the
1 judiciary and to present the
’ recommendations of the Judicial
Conference.”
' 2 Jurists Originated Idea
The proposal for periodic ad
-1 dresses by the Chief Justice was
' first publicly advanced in Nov
[ ember. 1954, by Deputy Attorney
[ General William P. Rogers. The
! idea originated within the judici
! ary itself. Its authors were the
' late Chief Judge Harold M.
1 Stephens of the Court of Appeals
1 for the Third Circuit.
Both jurists expressed belief
. that the judiciary needs a
[ spokesman who would make
. Known the needs of the courts
r to Congress and the people.
; After Mr. Rogers’ speech, let
, ters of indorsement poured in
I from leaders of the bench and
I bar all over the country. As soon
q.s Congress went into session in
January, 1955, resolutions were
introduced in both houses to
provide for the address periodi
■ cally.
Testimony F’avored Plan
l
j A Senate Judiciary subcom
. mittee held hearings on the pro
. posal early in February, 1955.
, The testimony was overwhelm
y ingly in favor of the resolution,
f Witness after witness empha
sized crowded court dockets, in
, creasing backlogs of cases, un
; derstaffed courts, inadequate ap
j propriations. delayed action on
proposals for improvement in the
!administration of justice and
delayed justice.
Action in both houses was post
i poned indefinitely, however. At
, the time, there were those who
. thought Chief Justice Warren
might want to become a candi
s date for President, although he
. had repeatedly stated that he
; had no intention of doing so It
was also a time when Southern
• Democrats were angry with the
i Supreme Court. Some contended
i such an address would break
. down the principle of separation
1 of powers arising from the Con-*
- stitution, although others pointed
out repeatedly that the Chin!
j Justice already reports to Con
. gress—in writing.
1 Proposal Revived
The proposal was revived re
’ cently when the executive com-
Vmittee of the Attorney General’s
' Conference on Court Congestion
j and Delays in Litigation in its
; first report recommended that
/Congress invite the Chief Justice
.to appear personally before a
1 joint session at the beginning of
every Congress to report on be
‘half of the Judicial Conference
i “on pending urgent requirements
of the Federal courts and on long
, range programs to meet future
needs before they become cri
. tical.”
J “It is essential,” said the group
, of jurists and lawyers, “that the
I courts be provided with a spokes
man to make known to Congress
I directly and effectively recom
mendations which will advance
/the proper administration of jus
tice and which are therefore of
! common concern.”
.• , i
•ictMs SMI Mm
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3 BALANCED
BUDGETS 111
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MciMitniMm Htciisls 173* Mm
CipmMuris IN J • tifnoiwii pi I
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•«m *. . SB 1 129
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fiicutlfi Office If TM Pranlißt - taum of Tfct lui|«i
siship conversions planned by the
. Navy, there will be three cruisers,
/five destroyers and eight frigates,
Jail capable of firing guided mis
/siles.
i The least change appears to
,! be In the Marine Corps. It will
. continue to maintain three divi
sions and three air wings. The
' divisions will be equipped with
atomic weapons.
/ Personnel - wise the armed
i forces will remain about the
same—2.B million. It was ex
plained that while a four to six
per cent cut in military man
power had been considered last
: fall, the Hungarian and Middle
, East situations brought about an
. abandonment of such thoughts.
,; It will be another year ’’at least”
l before further consideration of
. a reduction takes place.
Peacetime Record Set
Expenditures for the program
would be the largest In peace
time history.
Heres the President’s pro
posals as to money:
Spending—s3B billion as com
pared with $36 billion this year,
divided as follows: Army, $9.1
billion: Navy. $10.4 billion, and
I Air Force, $17.6 billion.
New contractual authority—
s3B.s billion against $36.8 billion.
The Army would get $8.9 billion;
Navy, $10.9 billion; and Air
Force, $17.6 billion.
However, the military actually
will place contracts for $40.6 bil
: lion during the year. This comes
about through unspent funds
still on the books, money from
surplus sales, etc. The larger
total would be divided thus:
Army, $9.7 billion: Navy, sll.l
biliion; and Air Force SIB.B
billion.
Explaining the big sums, Mr.
Eisenhower said:
“We are now engaged in the
development of a whole new
family of ever more advanced
weapons for all the services.
Large expenditures will be re
quired to bring these weapons
into use.”
Aircraft Spending Rises
A total of $7.3 billion worth of
contracts would be placed for
aircraft, including 100 more B
-525. The total is slightly above
this year Spending for aircraft
was estimated at $6.7 billion.
Research and development
contracts would total $1.6 billion
or slight;y less than this year,
since the big ones for intercon
tinental and intermediate range
ballistic missiles already have
been placed. Spending for re
search and development con
tracts already will approach $1.6
billion.
Major precurement and pro
duction expenditures are esti
mated at $12.2 billion or $542
million more than in the current
year. Expenditures for guided
missiles will be up 35 per cent
' and ship construction up about
12 per cent.
Breakdown of F’orces
Here is a breakdown of the
i military forces M>\ Eisenhower's
i plan would provide:
• Army—Approximately 1 mil
i lion officers and enlisted person
nel. It now has 991,600. In ad
dition to the divisions and atomic
supoort commands, there would
continue to be nine regimental
' combat teams. Anti-aircraft bat
talions would be reduced from
■ 133 to 127. Mr. Eisenhower ex
plained that, the Nike missile
■ program would be expanded and
spoke of the inci eased us* of
new weaoons and equinmem; “in
cludin'! thos» with nuclear capa
bilities” in anti-eirerafe defenses.
! A total of 697,000 dril 1 -status re
! servi-ts. including 400,000 Na
tional Gmrdsm"n. Aircraft will
number 5,000. compared with
4.700 r.ow.
) Navy—A strength of around
375.099, compared with the pres
ent 637.199. A total of 983 ships',
| including 422 warships. The
, number of warships would be
inert'-’sed by 16. Support craft
, would be cut. Seventeen carrier
. air groups. Twenty carrier air
j squadrons, an increase of one.
. A reserve of 150.000 and nearly
J 50,000 in the Marine Corps. Ai v
. craft—ll 800 The Navy would
11 place orders for 1.250 planes,
l mostly fighters.
Air Force —A strength of 925 -
000, or some 10.000 .more than
now. Defense official's said 690
planes in the reduction are due
- to changing the Civil Air Patiol
■ from a military to a civilian
» status. They said 18.000 of the
i planes to be maintained, or half
i tne total, are combat types,
t nearly all modern jets. The Air
i Force would order between 1,500
i and 1.600 planes, mostly Heavy,
f expensive bombers and inter
ceptors. All the 11 heavy bomber
wines would be equipped with
> B-525.
; Airborne Post Digger
RUIDOSO. N. M. (/Pi.—The
) Mescalero Apaches took to the
’ air to build a fence high in the
• White Mountains. They solved
i the problem of getting steel
■ fence posts into place by hiring
the pilot of a light plane to fly
• them in and drop them at cor
f reel intervals along the strip
the fence was to be built.
A-9