National Affairs: A Dual Responsibility

Required by law to send his fiscal 1958 budget to Congress last January, Dwight Eisenhower soon made it clear that his Administration was still trying to find ways to shave the record-breaking $71.8 billion. Later, after Treasury Secretary George Humphrey set off a clamorous flap by predicting that big budgets would lead to a hair-curling depression, President Eisenhower passed the hot budget potato to Congress, saying that it was the "duty" of Congressmen to cut spending—if they possibly could. The House of Representatives tossed the potato right back with a resolution asking the President to point out budget economies. Last week President Eisenhower did just that: he sent House Speaker Sam Rayburn an unprecedented letter suggesting possible cuts of more than $1.8 billion—and deftly plunking the potato back into the lap of Congress.

Fiscal ABCs. The President's letter actually was written by Budget Director Percival Brundage as a result of the continuing study that Ike had originally promised. Moreover, it was fully approved by Humphrey, who thought it was just "fine." It began with some fiscal ABCs that Congress well understands but the general public probably does not: "The 1958 budget, as all Federal budgets, is in effect two budgets within one."

One part is for actual spending during fiscal 1958. It consists of 1) about $45 billion for "programs related to the protection of our country"; 2) about $17.6 billion required by previously passed laws —veterans' pensions, interest on the public debt, etc.; and 3) about $9 billion for the operation of Government departments and such activities as public health.

The other category of the two-in-one budget is for legislative authority under which federal agencies can obligate themselves for future expenditures. It was in this area that the President thought most cuts could be made. Items:

¶ New spending authority for Army procurement and production might be cut by $516 million—but it would be a bookkeeping switch, with the entire $516 million added to "the large amount that will have to be authorized for Army procurement and production in fiscal year 1959."

¶ New spending authority for military public works (a juicy morsel in the congressional pork barrel), down by $200 million by "delaying less urgent projects."

¶New spending authority for the soil-bank program, down by $254 million because farmer enrollment has not come up to original estimates.

¶ Investments of the Federal National Mortgage Association down by $50 million and authorizations for the college housing program down by $25 million (both "Fanny May" and college housing are congressional pets).

¶ New spending authority for the Corps of Engineers (in charge of many of the home-state construction programs beloved by Congressmen), down $13 million.

¶ Budgeted contingent expenses, down by $300 million (a total of $500 million had been budgeted to cover undeterminable emergencies, e.g., a possible need for $2,000,000 for spraying western drought areas against grasshoppers).