S. 228. A bill for the relief of Irene Ezitis;

S. 229. A bill for the relief of Michael David Montgomery;

S. 230. A bill for the relief of Jenny Evely Elsie Duncan;

S. 231. A bill for the relief of Otmar Sprah; and

S. 232. A bill for the relief of Hugo Kern; to the Committee on the Judiciary. By Mr. SMITH of New Jersey:

S. 233. A bill for the relief of Jeno Cseplo;

S. 234. A bill for the relief of Thomas Szabo;

S. 235. A bill for the relief of Rev. Armando Fuoco;

S. 236. A bill for the relief of Amir Hassan Sepahban;

S. 237. A bill for the relief of Augusta Barrois;

S. 238. A bill for the relief of Alexander Hahn and Suzanne Hahn;

S. 239. A bill for the relief of Mr. and Mrs. Frank Goto; and

S. 240. A bill for the relief of Isabel Eileen Burn; to the Committee on the Judiciary.

the Judiciary.

By Mr. SPARKMAN:

S. 250. A bill to amend the Social Security Act so as to prescribe circumstances under which the Federal old-age and survivors insurance system may be extended to State and local employees who are covered by retirement systems; to the Committee on Finance.

By Mr. BRICKER (for himself,
Mr. MCCARRAN, Mr. AIKEN, Mr.
BARRETT, Mr. BEALL, Mr. BɛN-
NETT, Mr. BRIDGES, Mr. BUSH, Mr.
BUTLER of Nebraska, Mr. Butler
of Maryland, Mr. BYRD, Mr.
CAPEHART, Mr. CARLSON, Mr.
CASE, Mr. CHAVEZ, Mr. CORDON,
Mr. DANIEL, Mr. DIRKSEN, Mr.
DUFF, Mr. DWORSHAK, Mr. EAST-
LAND, Mr. ELLENDER, Mr. FERGU-
SON, Mr. FLANDERS, Mr. FREAR,
Mr. GILLETTE, Mr. GOLDWATER,
Mr. HENDRICKSON, Mr. HICKEN-
LOOPER, Mr. HOEY, Mr. IVES, Mr.
JENNER, Mr. JOHNSON of Colo-
rado, Mr. JOHNSTON of South
Carolina, Mr. KERR, Mr. KNOW-
LAND, Mr. KUCHEL, Mr. LANGER,
Mr. MCCLELLAND, Mr. MALONE,
Mr. MARTIN, Mr. MAYBANK, Mr.
MUNDT, Mr. PAYNE, Mr. POTTER,
Mr. PURTELL, Mr. ROBERTSON,
Mr. SALTONSTALL, Mr. SCHOEP-
PEL, Mr. SMITH of New Jersey,
Mrs. SMITH of Maine, Mr. SMITH
of North Carolina, Mr. STENNIS,
Mr. TAFT, Mr. THYE, Mr. TOBEY,
Mr. WATKINS, Mr. WELKER, Mr.
WILLIAMS, Mr. YOUNG, Mr. GRIS-
WOLD, and Mr. MAGNUSON):

S. J. Res. 1. Joint resolution proposing an amendment to the Constitution of the United States relative to the making of treaties and executive agreements; to the Committee on the Judiciary.

By Mr. MCCARRAN (for himself and Mr. BRICKER):

S. J. Res. 2. Joint resolution to impose limitations with regard to executive agreements; to the Committee on Foreign Relations.

By Mr. MCCARRAN:

S. J. Res. 3. Joint resolution proposing an amendment to the Constitution of the United States relative to the taking of private property; and

S. J. Res. 4. Joint resolution proposing an amendment to the Constitution of the United States to restore the same rights to the Indian tribes which are enjoyed by all citizens of the United States; to the Committee on the Judiciary.

By Mr. MAYBANK:

S. J. Res. 5. Joint resolution to authorize the American Battle Monuments Commission to prepare plans and estimates for the erection of a suitable memorial to Gen. John J. Pershing; to the Committee on Rules and Administration.

By Mr. CORDON:

S. J. Res. 6. Joint resolution to provide for a continuance of civil government for the Trust Territory of the Pacific Islands; to the Committee on Interior and Insular Affairs.

By Mr. SALTONSTALL (for himself and Mr. FERGUSON):

S. J. Res. 7. Joint resolution authorizing the President of the United States of America to proclaim October 11 of each year General Pulaski's Memorial Day for the observance and commemoration of the death of Brig. Gen. Casimir Pulaski; to the Committee on the Judiciary.

By Mr. SMATHERS:

S. J. Res. 8. Joint resolution proposing an amendment to the Constitution relating to the nomination and election of candidates for President and Vice President, and to succession to the office of President in the event of the death or inability of the President; to the Committee on the Judiciary.

By Mr. FREAR:

S. J. Res. 9. Joint resolution to authorize the issuance of a stamp in commemoration of the life of Emily P. Bissell; to the Committee on Post Office and Civil Service.

By Mr. FREAR (for himself and
Mr. WILLIAMS):

S. J. Res. 10. Joint resolution designating the period beginning on the Sunday before Thanksgiving Day and ending on the Sunday after Thanksgiving Day of each year as Homemakers Week; to the Committee on the Judiciary.

JOINT COMMITTEE TO INVESTIGATE QUESTION OF PRESIDENTIAL ELECTION AND SUCCESSION

Mr. GREEN submitted the following concurrent resolution (S. Con. Res. 2); which was referred to the Committee on Rules and Administration:

Resolved by the Senate (the House of Representatives concurring), That there is hereby created a joint congressional committee to be composed of five Members of the Senate to be appointed by the President of the Senate and five Members of the House of Representatives to be appointed by the Speaker of the House of Representatives. The joint committee shall select a chairman from among its members. A vacancy in the membership of the joint committee shall not affect the power of the remaining members to execute the functions of the joint committee, and shall be filled in the same manner as in the case of the original appointment.

SEC. 2. It shall be the duty of the joint committee to make a full and complete study and investigation of all matters connected with the election of the President and Vice President from the time of the nomination of the President and Vice President, through the time of their election and time of their inauguration until the termination of their respective terms of office, with the purpose of making the law certain as to the Presidential election and succession. These matters shall include, but shall not be confined to, the following:

(1) Whether or not the President and Vice President should be elected by the electoral college, as at present, and if so whether or not the members should be legally bound to vote in accordance with their instructions.

(2) Whether or not candidates for President and Vice President should be nominated by national political conventions, as at present, and, if so, recommendations which should be made to the parties for improving the convention process, and, if not, a method which would be preferable.

(3) Whether or not provision should be made for the case where before the election of presidential electors, or after such time but before the election of President and Vice President, a candidate for the Presidency or for the Vice Presidency dies, declines to run, or is found ineligible to take office if elected.

(4) Whether or not provision should be made for the case of the death of any of the individuals from whom the House of Representatives may choose a President whenever the right of choice shall have devolved upon it, and for the case of the death of any of the persons from whom the Senate may choose a Vice President whenever the right of choice shall have devolved upon it.

(5) Whether or not a constitutional amendment should be proposed under which failure of candidates for President and Vice President to receive a majority of the electoral votes shall be resolved by popular vote rather than by the House of Representatives.

(6) How it shall be determined whether the President, or individual acting as President, is unable to execute the powers and duties of the office, and how the duration of such inability shall be determined.

(7) Whether or not provision should be made for an individual to execute the office of President in case of removal, death, resignation, or inability, both of the President and Vice President, where by reason of removal, death, resignation, or inability there is no individual upon whom the powers and duties of such office would otherwise automatically devolve.

(8) Whether there are, or should be any differences between the status, powers, duties, and privileges of an elected President and of any other individual executing the office of President.

(9) Whether or not the term of the Vice President or other individual succeeding to the Presidency should be limited to a duration of approximately 2 years, a new presidential election to coincide with election of Members of the House of Representatives where such individual succeeds to the Presidency during the first or second year of the term for which the President was elected.

SEC. 3. The joint committee shall report to the Senate and House of Representatives the results of its study and investigation together with its recommendations, including drafts of any legislation recommended and of any proposed constitutional amendments considered necessary or desirable. The joint committee shall submit its final report to the Senate and House of Representatives not later than June 30, 1953, and thereupon the existence of the joint committee shall terminate.

SEC. 4. For the purposes of this concurrent resolution, the joint committee,

or any duly authorized subcommittee thereof, is authorized to hold such hearings, to sit and act at such times and places during the sessions, recesses, and adjourned periods of the Congress, to employ counsel, clerical and other assistants, to require by subpena or otherwise the attendance of such witnesses and the production of such correspondence, books, papers, and documents, to administer such oaths, to take such testimony, and to make such expenditures, as it deems advisable. The cost of stenographic services to report such hearings shall not be in excess of 25 cents per hundred words. The expenses of the joint committee, which shall not exceed $10,000, shall be paid one-half from the contingent fund of the Senate and one-half from the contingent fund of the House of Representatives, upon vouchers approved by the chairman of the joint committee. Disbursements to pay such expenses shall be made by the Secretary of the Senate out of the contingent fund of the Senate, such contingent fund to be reimbursed from the contingent fund of the House of Representatives in the amount of one-half of the disbursements so made.

STUDY OF ANTITRUST LAWS

Mr. MCCARRAN submitted the following resolution (S. Res. 14); which was referred to the Committee on the Judiciary:

Resolved, That the Committee on the Judiciary, or any duly authorized subcommittee thereof, is authorized and directed to make a comprehensive study of the antitrust laws of the United States and their administration, interpretation and effect, to determine the nature and extent of any legislation which may be necessary or desirable to

(a) clarify existing statutory enactments, and eliminate any conflicts which may exist among the several statutes comprising such laws;

(b) rectify any misapplications and misinterpretations of such laws which may have developed in the administration thereof;

(c) supplement such statutes to provide any additional substantive, procedural, or organizational legislation which may be needed for the attainment of the fundamental objects of such statutes; and

(d) improve the administration and enforcement of such statutes. SEC. 2. For the purposes of this resolution, the committee, or any duly authorized subcommittee thereof, is authorized during the sessions, recesses, and adjourned periods of the Eightythird Congress to employ upon a temporary basis such technical, clerical, and other assistants as it deems advisable and, with the consent of the head of the department or agency concerned, to utilize the services, information, facilities, and personnel of all agencies in the executive branch of the Government. The expenses of the committee under this resolution, which shall not exceed $, shall be paid from the contingent fund of the Senate upon vouchers ap

proved by the chairman of the committee.

PROCEDURES IN TAKING CUSTODY OF BOOKS, PAPERS, OR RECORDS AND PERSONS FOR COMMITTEES

Mr. MCCARRAN submitted the followlowing resolution (S. Res. 15); which was referred to the Committee on Rules and Administration:

Resolved, That upon certification by the chairman or the acting chairman of a standing committee of the Senate that two-thirds of the members of the committee have voted to require the production of specified or identified books, papers, or records in the custody of an officer of the Government of the United States, the President of the Senate shall issue his warrant, returnable at a time when the Senate is meeting, commanding the Sergeant at Arms to obtain the books, papers, or records specified by the chairman or the acting chairman, and in the event of the refusal of the officer of the Government of the United States having custody thereof, to deliver the required books, papers, or records, to take the said officer into bodily custody forthwith, and bring him before the bar of the Senate, then and there to answer questions as to his refusal.

LOYALTY CHECKS ON SENATE EMPLOYEES

Mr. MCCARRAN submitted the following resolution (S. Res. 16); which was referred to the Committee on Rules and Administration:

Resolved, That hereafter when any person is appointed as an employee of any committee of the Senate, or any Senator, or of any office of the Senate, the committee, Senator, or officer having authority to make such appointment shall transmit the name of such person to the Committee on Un-American Activities of the House of Representatives, to the Federal Bureau of Investigation, and to the Central Intelligence Agency, together with a request that such committee, Senator, or officer be informed as to any derogatory information in the possession of such agency concerning the loyalty of such person, and in any case in which such derogatory information is revealed such committee, Senator, or officer shall make or cause to be made such further investigation as shall have been considered necessary to determine the loyalty of such person.

Every such committee, Senator, and officer shall promptly transmit to the Committee on Un-American Activities of the House of Representatives, to the Federal Bureau of Investigation, and to the Central Intelligence Agency a list of the names of the incumbent employees of such committee, Senator, or officer, together with a request that such committee, Senator, or officer be informed of any derogatory information contained in the files of such agency concerning the loyalty of such employee.

PREPARATION AND PRINTING REVISED RULES AND MANUAL

Mr. JENNER submitted the following resolution (S. Res. 17); which was referred to the Committee on Rules and Administration:

Resolved, That the Committee on Rules and Administration be, and it is hereby, directed to prepare a revised edition of the Senate Rules and Manual for the use of the Eighty-third Congress, and that 1,500 additional copies shall be printed and bound, of which 1,000 copies shall be for the Senate, 200 copies for the use of the Committee on Rules and Administration, and the remaining 300 copies shall be bound in full morocco and tagged as to contents and delivered as may be directed by the committee. PROPOSED CHANGES IN NUMBER OF MEMBERS ON CERTAIN STANDING COMMITTEES Mr. CASE submitted the following resolution (S. Res. 18), which was referred to the Committee on Rules and Administration:

Resolved, That section (1) of rule XXV of the Standing Rules of the Senate (relating to standing committees) is amended

(1) by striking out "thirteen" in subsection (a) (relating to the Committee on Agriculture and Forestry) and inserting in in lieu thereof "fifteen";

(2) by striking out "twenty-one" in subsection (b) (relating to the Committee on Appropriations) and inserting in lieu thereof "twentythree":

(3) by striking out "thirteen" in subsection (c) (relating to the Committee on Armed Services) and inserting in lieu thereof "fifteen";

(4) by striking out "thirteen" in subsection (d) (relating to the Committee on Banking and Currency) and inserting in lieu thereof "fifteen":

(5) by striking out "thirteen" in subsection (e) (relating to the Committee on Post Office and Civil Service) and inserting in lieu thereof "eleven":

(6) by striking out "thirteen" in subsection (f) (relating to the Committee on the District of Columbia) and inserting in lieu thereof "eleven":

(7) by striking out "thirteen" in subsection (g) (1) (relating to the Committee on Government Operations) and inserting in lieu thereof

"eleven":

(8) by striking out "thirteen" in subsection (h) (relating to the Committee on Finance) and inserting in lieu thereof "fifteen":

(9) by striking out "thirteen" in subsection (i) (relating to the Committee on Foreign Relations) and inserting in lieu thereof "fifteen":

(10) by striking out "thirteen" in subsection (j) (relating to the Committee on Interstate and Foreign Commerce) and inserting in lieu thereof "fifteen":

(11) by striking out "thirteen" in subsection (k) (relating to the Committee on the Judiciary) and inserting in lieu thereof "fifteen":

(12) by striking out "thirteen" in subsection (1) (relating to the Committee on Labor and Public Wel

fare) and inserting in lieu thereof "fifteen";

(13) by striking out "thirteen" in subsection (m) (relating to the Committee on Interior and Insular Affairs) and inserting in lieu thereof "eleven";

(14) by striking out "thirteen" in subsection (n) (relating to the Committee on Public Works) and inserting in lieu thereof "eleven”; and

(15) by striking out "thirteen" in subsection (o) (relating to the Committee on Rules and Administration) and inserting in lieu thereof "eleven."

SEC. 2. Section (4) of rule XXV of the Standing Rules of the Senate is amended to read as follows:

"(4) Each Senator shall serve on two standing committees and no more; except that not to exceed eighteen Senators of the majority party, and not to exceed three Senators of the minority party, who are members of the Committee on the District of Columbia, the Committee on Government Operations, or the Committee on Post Office and Civil Service may serve on three standing committees and no more."

GOVERNMENT POSITIONS NOT UNDER CIVIL SERVICE

Mr. CARLSON submitted the following resolution (S. Res. 19); which was referred to the Committee on Post Office and Civil Service:

Resolved, That the Civil Service Commission be, and it is hereby, directed to furnish the Senate with a full and complete list of all offices, positions, places, and employments, listing the same by departments, bureaus, boards, commissions, and independent establishments, including the government of the District of Columbia, unofficial observers, special attorneys or special agents, and Federal employments of all kinds, with the amount of salaries of each attached, under the Government of the United States and not under civil-service rules and regulations.

AMENDMENT OF STANDING RULE RELATING TO CLOTURE

Mr. JENNER submitted the following resolution (S. Res. 20); which was referred to the Committee on Rules and Administration:

Resolved, That subsection 2 of rule XXII of the Standing Rules of the Senate (relating to cloture) is amended by inserting before the word "following" the word "fifth"; and by striking out "by two-thirds of the Senators duly chosen and sworn" and inserting in lieu thereof "by two-thirds of the Senators present and voting."

SPECIAL ASSISTANT TO MINORITY MEMBERS OF SENATE

Mr. BRIDGES submitted the following resolution (S. Res. 21), which was referred to the Committee on Rules and Administration:

Resolved, That the minority Members of the Senate are authorized to appoint a special assistant to the minority who shall perform such duties as may be pre

scribed by such minority Members and who shall receive compensation to be fixed by them at a basic rate of not less than $7,320 or more than $8,000 per annum to be paid out of the contingent fund of the Senate.

CONTINUATION OF STUDY OF ORGANIZATION AND OPERATION OF INTERSTATE COMMERCE

COMMISSION

Mr. TOBEY submitted the following resolution (S. Res. 22), which was referred to the Committee on Interstate and Foreign Commerce:

Resolved. That the time within which the Committee on Interstate and Foreign Commerce may complete the investigation authorized by Senate Resolution 332, agreed to June 26, 1952. hereby is extended to June 30, 1953.

CONTINUATION OF INVESTIGATION OF CERTAIN TRANSPORTATION AND COMMUNICATIONS PROBLEMS

Mr. TOBEY submitted the following resolution (S. Res. 23); which was referred to the Committee on Interstate and Foreign Commerce:

Resolved, That the time within which the Committee on Interstate and Foreign Commerce may complete the investigation authorized by Senate Resolution 50, Eighty-first Congress, agreed to April 11, 1949, as continued by Senate Resolution 308, Eighty-first Congress, agreed to July 27, 1950, Senate Resolution 55, Eightysecond Congress, agreed to February 19, 1951, Senate Resolution 154. Eightysecond Congress, agreed to June 29, 1951, and Senate Resolution 258. Eightysecond Congress, agreed to January 24. 1952, hereby is extended to June 30, 1953.

PROPOSED STANDING COMMITTEE ON
VETERANS AFFAIRS

Mr. FERGUSON submitted the following resolution (S. Res. 24); which was referred to the Committee on Rules and Administration:

Resolved, That commencing with the Eighty-fourth Congress, rule XXV of the Standing Rules of the Senate (relating to standing committees) is amended by

(1) striking out subparagraphs 10 through 13 in paragraph (h) of section 1;

(2) striking out subparagraph 16 through 19 in paragraph (1) of sec

tion 1:

(3) inserting in section 1, after paragraph (0), the following new paragraph: "(p) Committee on Veterans' Affairs, to consist of 13 Senators, to which committee shall be referred all proposed legislation, messages, petitions, memorials, and other matters relating to the following subjects:

"1. Veterans' measures, generally. "2. Pensions of all wars of the United States, general and special.

"3. Life insurance issued by the Government on account of service in the Armed Forces.

"4. Compensation of veterans.

"5. Vocational rehabilitation and education of veterans.

"6. Veterans' hospitals, medical care, and treatment of veterans.

7. Soldiers and sailors' civil relief.

"8. Readjustment of servicemen to civil life.";

(4) striking out section 4 and inserting in lieu thereof the following:

"(4) Each Senator shall serve on 2. standing committees and no more; except that 18 Senators of the majority party, and 6 Senators of the minority party, who are members of the Committee on the District of Columbia, the Committee on Expenditures in the Executive Departments, or the Committee on Post Office and Civil Service, shall serve on 3 standing committees and no more. During any period in which the minority party has a total membership of 15 Senators or less, such 6 Senators of such party who shall be members of 3 committees may be members of any 3 standing committees."

EXPANDING FOREIGN INVESTMENTS Mr. CAPEHART (for himself and Mr. MAYBANK) Submitted the following resolution (S. Res. 25); which was referred to the Committee on Banking and Currency:

Resolved, That the Committee on Banking and Currency, or any duly authorized subcommittee thereof, is authorized and directed to make a thorough study of means and methods for increasing and expanding our international trade, through the operations of the Export-Import Bank, the International Bank for Reconstruction and Development, and such other agencies and devices as would facilitate increasing American investment abroad and expanding international trade. The committee shall report to the Senate at the earliest practicable date the results of its study, together with such recommendations as it may deem advisable.

RULES OF THE SENATE

The Senate resumed the consideration of the motion of Mr. ANDERSON (for himself and others) that the Senate take up for adoption rules of the Senate for the Eighty-third Congress.

So the motion of Mr. ANDERSON (for himself and others) was laid on the table.

PROPOSED CHANGES IN NUMBER OF MEMBERS

ON CERTAIN STANDING COMMITTEES Mr. JENNER, by unanimous consent, from the Committee on Rules and Administration, to whom was referred the resolution (S. Res. 18) proposing changes in the number of members on certain standing committees, reported it with an amendment and submitted a report (No. 1) thereon.

Ordered, That the resolution lie on the table.

RECESS

On motion by Mr. TAFT, at 5 o'clock and 26 minutes p. m.,

The Senate took a recess until 12 o'clock m. on Friday next.

FRIDAY, JANUARY 9, 1953 (Legislative day of Tuesday, January 6, 1953)

The PRESIDENT pro tempore called the Senate to order at 12 o'clock m., and the Chaplain offered prayer.

THE JOURNAL

On motion by Mr. TAFT, and by unanimous consent,

mittee on Appropriations and ordered to be printed:

To the Congress of the United States:

I am transmitting with this message the budget of the United States Government for the fiscal year ending June 30, 1954.

This budget represents my judgment as to the amount of funds needed to carry forward our programs for the security and welfare of our people and for world peace. It is based, like all those I have transmitted in previous years, on the policy that the Government should undertake to do only what is essential for the safety and well-being of the Nation, and that what must be done should be done in the most efficient manner.

This budget has been prepared under unique circumstances. It is the first budget since the adoption of the twentieth amendment to the Constitution to be presented to the Congress by a President who will leave office a few days after its transmission. My successor will be inaugurated as President on January 20. His will be the Executive responsibility during the time when this budget is being considered by the Congress, and his will be the responsibility for the administration of Federal programs for the period of time covered by this budget. I have done all in my power to ease the problems of transition to the new administration, including informing the President-elect, through a representative of his choice, of the background and considerations which have entered into the preparation of this budget. However, I wish to make it clear that neither my successor in office nor any of his staff has participated in the decisions herein represented. The President-elect has no responsibility for the amounts included in this budget, and will be entirely free, of course, to propose changes in them.

This

Because of the particular circumstances, there is one significance difference between this budget and others I have transmitted. In previous years, the budget estimates have included the cost of new legislation which I recommended to the Congress. Such a practice is a sound rule for Federal budgeting. year, however, I am not transmitting specific proposals for new legislation. Accordingly, the usual estimates of the fiscal effects of such legislation are not included. For example, neither estimated expenditures for aid to medical education nor estimated receipts from increased postal rates are included. I still support these and certain other legislative proposals as strongly as ever, but since I will not be in office during the fiscal year 1954, I do not think it proper

for me to transmit specific new legislative proposals or to budget for them. However, funds are included in this budget to carry forward certain activities already under way which will require renewed legislative authority to continue into the next fiscal year, such as the programs under the Mutual Security Act and the Defense Production Act.

In this budget, I am recommending that the Congress enact 72.9 billion dollars in new authority to incur financial obligations during the fiscal year 1954. Total expenditures, from these funds and from balances of authorizations previously enacted, are estimated at 78 6 billion dollars. Receipts under present tax laws, which provide for the expiration of some of the post-Korean tax increases, are estimated at 68.7 billion dollars. On this basis, the deficit is estimated at 9.9 The following table billion dollars. table shows the budget totals for the five fiscal years 1950 through 1954:

These figures show very clearly the budgetary impact of the defense mobilization program on which we embarked after the Communist aggression in Korea in June 1950. This program required, among other things, that we increase our active military forces by about 2 million men and women, equip

those larger forces with new and improved weapons, and maintain them for an indefinite period. These were steps judged necessary not only to carry out the commitment we undertook in Korea, but also to increase our defense preparedness in the light of the continuing possibility of fighting on a much larger scale. We are now well along in this program. Our Armed Forces have long since reached the level of 3.6 million; the initial equipment to outfit them has been ordered, and much of it has been delivered.

New obligational authority, primarily to finance the purchase of military weapons and equipment, rose sharply after the attack on Korea and reached a peak of 92.9 billion dollars in the fiscal year 1952. Since then, new obligational authority has been declining. The amount recommended for the fiscal year 1954 is 20 billion dollars less than the amount enacted for 1952.

Although new obligational authority is declining, expenditures are still rising. This is due to the long lead time involved in the procurement of military equipment-the time required to design, produce, test, and deliver such complex items as planes, tanks, ships, and guns,

after contracts are let. Because of this long lead time, most items of military equipment are not usually delivered and completely paid for until 2 or sometimes 3 years after they are ordered.

Each year from 1951 through 1953, new obligational authority has exceeded expenditures, because new obligational authority represented for the most part orders being placed, and expenditures represented for the most part payments for goods being delivered. In the fiscal year 1954, fewer orders will be placed, but more goods will be delivered. As a result, expenditures are expected to exceed new obligational authority for the first time since before Korea.

Under our present defense program, military expenditures are expected to reach their peak in the fiscal year 1954 and to start declining in subsequent years. If our Armed Forces are stabilized at their presently approved goals and if no new aggressions occur, new obligational authority and expenditures may be expected to level off in future years at the amounts necessary to maintain these forces and to replace current equipment with new and better items as they are developed. It is difficult to forecast with any precision the amount by which total Federal expenditures may be expected to drop in future years under these assumptions, but it may be in the neighborhood of 15 billion dollars. In my judgment, however, a drop of this magnitude cannot be expected for at least 2 or 3 years.

BUDGET ΕΧΡΕΝDITURES

This budget is dominated, as the last three have been, by the cost of national security. About 73 percent of all budget expenditures in the fiscal year 1954 will be for six major national security programs-military services, international security and foreign relations, the development of atomic energy, the promotion of defense production and economic stabilization, civil defense, and merchant marine activities. In the fiscal year 1954 these programs will cost approximately 57.3 billion dollars.

An additional 14 percent of budget expenditures in 1954 will be for interest and for veterans' services and benefits. These expenditures, which will amount to approximately 11 billion dollars, represent for the most part a continuing cost of World War II; in addition, they include the costs of services and benefits for the growing number of veterans of the fighting in Korea.

The remaining 13 percent, or 10.3 billion dollars, will be for all other activities of the Government. Some of these activities such as the port security program of the Coast Guard and the internal security program of the Federal Bureau of Investigation-have a direct bearing on our national security. Others such as our programs for agriculture, housing and community development, education and general research, labor, social security, welfare, and health-help to assure our continued social and economic progress and to strengthen the Nation for the long, hard period of world tension that lies ahead

In the preparation of this budget, every Government program-including those directly concerned with national security-has been reviewed in the light of the current outlook for international developments, in the light of the heavy tax burden, and in the light of the longterm needs of the Nation. The recommended estimates reflect our constant effort to adjust expenditure programs to make sure they are at the minimum level consistent with our national objectives. Proposals for military procurement, for example, reflect our policy of relying. wherever possible, on a continuing flow of weapons and equipment from production lines, rather than on the accumulation of large inventories of reserve stocks.

Increased funds have been included in this budget only for those programs where, in my judgment, a clear and definite need exists that cannot be longer deferred without impairing the public interest. In the case of several regulatory agencies, such as the Interstate Commerce Commission, the Federal Trade Commission, the Securities and Exchange Commission, and the Federal Communications Commission, earlier cut-backs were so severe that steps have been taken in this budget to restore some of them. Even in these instances, however, the policies have been strict. Funds have been provided for handling increased workloads or backlogs of unfinished work only when failure to do so would result in delays which would have to be made up later at an even greater expense, or in a serious impairment of an agency's ability to carry out the responsibilities assigned to it by law. It would be shortsighted to do less.

Because of the overriding requirements of the national security programs, many important Government services to businessmen, farmers, and the public at large have been held, in recent years, to levels below those justified by our growing population and expanding economy.