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YES AND NO-In the United Nations, U.S. delegate Warren Austin (left) and
Sir Glodwyn Jebb of Britain vote "Aye" en Korean cease-fire proposal. Russia's
Jacob Malik (right) voted "No." Five-point plan was passed by vote of 50 to 7.
Most of Tax Dollar
Will Go for Defense
FDR a century and a half, the United States looked down its nose
at countries which spent most of their money ;on standing armies.
Old World militarism, scoffed Americans, placing their reliance on
straight-shooting volunteers and two big ocean barriers. Those days
are gone now possibly forever.
That truth was emphasized by President Truman's budget for
fiscal 1952, calling for the largest non- ;
wartime budget in American history.
He asked Congress for $71,594,000,000,
more than half of which would go to
the military.
Bigger Budgets Ahead?
Furthermore, Mr. Truman said, the
big budget for the fiscal year which
starts July 1 may be dwarfed in turn
by the budgets for 1953 and 1954, if
further mobilization is required.
"It is one measure," the President
said solemnly, "of the vast new re
sponsibilities thrust upon the Ameri
can people by Communist threats to
freedom in other parts of the world."
The President asked Congress for
$16,500,000,000 in new taxes for pay-as-you-go
financing.
The vast total of this crisis budget
breaks down to about $471 for every
man, woman and child among the
150,697,361 in the 1350 census.
Mr. Truman has suggested that
roughly this amount be collected from
the citizen in 1951. Part of this, of
course, will be in the form of hidden
taxes but the President indicated he
may ask for income tax increases re
troactive to January 1. A federal sales
tax also is being considered.
Budget Breakdowns
If his recommendations are fol
lowed, here's how the tax dollar will
be spent: military services, 58 cents;
foreign aid programs. 10 cents; inter-
benefits, 7 cents; all other expenses,
17 cents.
And here's where the budget dollar
is to come from: individual taxes, 35
cents; corporation taxes, 27 cents; ex
cise (sales) taxes, 11 cents; customs,
4 cents; proposed n2w taxes, 23 cents.
Congress, alone, has the power to
raise or lower taxes.
Mr. Truman's budget message
stirred more Congressional controver
sy than his "State of the Union" ad
dress a fortnight ag).
Congressional Controversy
For one thing, it proposed a slight
increase in non-defense spending. For
another, it called fir many of Mr.
Truman's pet Fair Deal projects such
as the civil rights program and a
major part of the Brannan farm plan.
Most legislative leaders endorsed
his recommendation to finance de
fense outlays on a pay-as-you-go
basis but there agreement stopped.
Many Republicans and Democrats
alike warned that in raising taxes
care must be taken to see the amount
does not cripple the nation's economy.
Non-defense items in the huge budget
appear to be in for careful scrutiny.
Fair Deal Projects
Sen. Harry Byrd (D-Va), long a
critic of Administration finances, said
the President was renewing his so
cialistic Fair Deal measures.
Rep. Joseph W. Martin (R-Mass),
the House GOP leader, called the
President's budget message a "spend-ing-as-usual"
program.
Western Europe was awed by the
colossal military outlays in the pro
posed new American budget Said the
liberal London Daily Star:
Two facts should be remembered
about this biggest of all peacetime
budgets the money must be found
by the American taxpayer and that
at a word from Stalin it need never
be .pent at all"
Sidelights
C The first group of America's big
gest bombers the B-36 with six con
ventional and four jet engines ever
to fly to Europe, landed in Britain last
week after a routine training flight
from Texas. ' j.
9- A Baltimore builder Is advertising
atom bomb shelters for residential
dwellings a't $X2Q0 each.
In Clayton, N. IL, Bill Wetsel, 57.
who claimed to be the world's fattest
man. died last week. He served if
days in the army during World War
I , was given an honorable discharge
with a note that he Was "too large for
(nan, too small for a horse. As a
youth, realizing he was destined to be.
fat. Wetzel set his goal at 700 pounds.
A year ago he tipped the beam at 679
pounds. ; ; - .- . ,
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TRUMAN'S BUDGET DOLLAR
Where It Will Go...
Where It Will Come From...
OnW fetes
Noise
Psychological ; Red Weapon
' MnKAai.
The bloodcurdling Indian war
whoop so feared by American pioneers
has a counterpart in Korea. The Chi
nese Reds are attempting to use horns,
drums and whistles as terror weapons
against American GIs.
Careful examination by U. S. intel
ligence officers shows the Communists
are using sound on a calculated basis.
There apparently is a three-fold ob
jective: First, Communists hope to frighten
the soldier in his lonely foxhole and
make him less effective and - deter
mined when the attack does open.
Second, Communists try to trick
the infantryman into opening fire, dis
closing his position prwnaturely.
Third, th,ey :try to convince the
front-line soldier falsely that his
unit is encircled by noises on all sides
of his position.'
One of the most popular Red noise
makers is a two-tone shepherd's horn.
The bugle alio is widely used. The
Chinese, short on radio communica
tions, use the bugle to signal attack,
withdrawal and reassembly.
A favorite Red trick during the
middle of an attack is to blow taps.
Since taps is trie American bugle call
for the dead, the Chinese apparently
believe it demoralizes GIs.
Sometimes drums are used as well
as whistles and chimes.
Intelligence officers say these sound
weapons no logger are effective al
though they riet with some initial
success.
ww i Mm IP II . . 1. . . . ..- I
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'IKE' ON TOUR-Cen. Eisenhower chats in Copenhagen with SENTENCED lis Koch was TRAGEDY First rescuer, man (right) nears airliner In which seven were burned
Mrs. Eugenie Anderson, U.S. ambassador to Denmark. At given life for murders at Buch- i to death at Philadelphia airport. Heroic stewardess, who saved many, died
right Is the Danish foreign minister, Ole Bjoern Kraft, enwald concentration camp.! trying to rescue baby. This picture was taken seconds after the crash.
DECISION:
THE United States was mobil
izing as never before in peace
time history. Feeling against Rus
sia was practically universal but
there unanimity stopped.
There was debate in and out of
Congress on how, when and where
to stop Red aggression.
There were calls for throwing the
Soviet Union out of the United Na
tions, declaring war, dropping the
atom bomb.
Look to the Leader
It was an open question who was
alarmed more by the welter of con
flicting claims and charges Russia or
America's democratic partners.
Sen. Styles Bridges (R-NH) said
the U. S. already was fighting com
munism in World War III and called
for a break in diplomatic relations
with the Soviet Union.
Gen. Eisenhower, new commander
of western Europe's international
army, was on a tour of the North At
lantic treaty countries. He said,
"Aroused and united, there is nothing
which nations of the Atlantic com
munity cannot achieve."
Take Tour Choice
But at home political leaders were
saying other things. These were some
of the statements:
Sen. Robert Taft (R-Ohio): "We
cannot defend Europe in a land war
in which the Russians are superior.
Let us build up the U. S. sea and air
power to dominate the world."
Former President Herbert Hoover:
"West Europe must provide troops to
erect a sure dam against the Red
flood and that before we land an
other man or another dollar on their
shores."
Dates
Monday, January 22
American Institute of Electrical
Engineers convenes in New York
City.
Tuesday, January 23
Anniversary (106th), Congress
declared Election Day to be the
Tuesday after the first Monday
in November,
Wednesday, January 21
Anniversary (103rd), gold dis
covered in California.
Friday, January 26
Birthday (71st), Gen. Douglas
MacArthur.
Republican National Commit
tee meets in Washington.
Saturday, January 27
American Physical Society
meets in New York City.
American Academy of Ortho
pedic Surgeons convenes in Chi
cago. Sunday, January 28
National Youth Week starts.
IT
World Awaits U. S. Leadership
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COLD, WHITE HELL War Is everything Sherman said it was to GIs fighting withdrawal near Seoul.
Sen. Tom Connally (D-Tex.): "There
are many who . . . will accept inter
nationalism if it can be bought at the
bargain counter."
Taft also called the State Depart
ment's acceptance of the United Na-
In Short . . .
Captured: In Mexico, Oklahoma
desperado William E. Cook, suspected
of killing eight persons, after a 10
day international manhunt.
Sentenced: By a German court, Use
Koch to life imprisonment for caus
ing the murder of Buchenwald con
centration camp prisoners during the
war.
Sentenced: Dr. Gordon Seagrave,
World War II Burma surgeon, to six
years at hard labor for treason for
aiding rebel tribesmen.
Declared: By Marshal Tito of Yugo
slavia, that he was ready to join in a
Socialist Third Force to strengthen
peace in the world.
Atom
Mass Production?
A month ago Sen. Brien McMahon
(D-Conn), chairman of the Senate
House Atomic Energy Committee, re
vealed a $1,050,000,000 program to
build plants for development of more
effective atomic weapons in South
Carolina, Kentucky and other places.
Domestic A-bomb tests will be held
in Nevada.
In his budget message to Congress,
the President hinted the United
States might be going into something
like mass production of A-bombs.
The reference was hi his statement
that in the fiscal year which starts
July 1, extensive work will be carried
on in development of what he called
"industrial-type production" of weap
ons of the latest approved design.
For the new fiscal year, Mr. Truman
wants $1,277,000,000 for the AEC, a
substantial increase over the AEC's
estimated expenditures this year. He
also proposed the AEC be given $370,
000,000 for new contracts next year.
Of this total, $129,744,000 would go
into the manufacture, testing, storage
and handling of atomic weapons; part
of a $19498,000 item for fissionable
materials would go to producing of
U-235 and plutonium for the weapons,
and $90,000,000 tor construction of
additional facilities,
Mr. Truman made no mention of
work on the hydrogen bomb which
scientists think may be as much as
1,000 times more powerful than the
A-bomb. - -.
. The President did say that work on
an atomic engine for ship propulsion
has progressed.
li.
tions cease-fire order for Korea "the
most abject appeasement since Mu
nich. That decision was made, he
American military leaders con
ferred in Tokyo with Gen. MacArthur.
In Korea, Allied troops pulled back
Book
30 for GBS
The last thing George Bernard
Shaw, the great Irish playwright, ever
wrote was his signature on an Income
tax return.
Blanche Patch, his secretary for 30
years, had to steady the old man's
wrist as he wrote for he couldn't see.
In his last years she says GBS was
color blind, nearly deaf and obsessed
with groundless fears of impending
bankruptcy.
Miss Patch, author of a book, "Thir
ty Years with GBS," says at 90 a
phobia about surtax took hold of him
and a spate of little economies fol
lowed in the Shaw household. The
playwright died November 2.
Miss Patch said Shaw, in his still
unpublished will, left her $1,400 a
year for life.
where communist pressure was too
heavy, struck back where it was light.
Gen. J. Lawton Collins, U. S. Army
chief of staff, said, Tm not going to
look into the future, but as of now we
Intend to stay and fight"
Quotes
Bishop Eugene McGuinness of
the Oklahoma City-Tulsa Catho
lic Diocese, commenting on a
Vatican order banning Catholic
priests from membership in Ro
tary Clubs: "As far as we're con
cerned, we're going to forget it."
Dr. Hu Shin, former Chinese
ambassador to the United States:
"Stalin is not going to destroy
himself by opening a second
front in Europe.''
EDUCATION: Facing a Crisis
Long Pull Ahead
American colleges face a crisis in
the national mobilization. Already en
rollment in many institutions is drop-
Controls
Are A head
ONE reason wage and price con
trols may be months away is
that the government hasn't a staff
big enough to impose and enforce
ceilings.
At its World War II peak, the
Office of Price Administration had
60,000 paid workers around the coun
try and 250,000 volunteers.
The new price boss is Michael V.
Disalle. A month and a half after ap
pointment, he has a staff of perhaps
330 people.
President Truman has made it clear
that wage and price controls are com
ing The only question is when.
Record Costs
Living costs are now at their high
est in history. The nationwide cost of
living index, prepared by the Bureau
of Labor Statistics, is now 31 per cent
higher than in June, 1946, when OPA
price controls were abolished.
Living costs have risen more than
three per cent since the outbreak of
Korean fighting last June. New gov
ernment figures, expected momen
tarily, probably will show costs still
rising.
Last July, the President started
down the trail leading toward con
trols when he asked Congress "for
very limited powers: to allocate de
fense materials and curb credit as a
brake on inflation.
He did not ask, and did not want,
curbs on wages or price.
Barnch View
Late in July, Bernard Baruch urged
Congress to pass legislation going all
out on controls. Mr. Truman disagreed.
But the Baruch view won such sup
port that by September Congress en
acted a law giving the President
greater standby powers than" he had.
sought including the power to clamp
ceilings on wages and prices.
On September 9, Mr. Truman cre
ated a board to -handle prices and
wages. It is called the Economic '
Stabilization Agency (ESA) and has
two branches: the Office of Price Con
trols and the Wage Stabilization
Board.
Three-way ESA
Alan Valentine, an educator, heads
ESA. Under him are Cyrus Ching, th
wage boss, and Disalle, the price boss.
In its grant of standby powers to
Mr. Truman, Congress inserted one
provision. Under the law wages can
not be controlled unless at the same -,
time prices are or vice versa.
Last week Disalle wanted to freeze,
all prices for 30 days but Valentine;
disagreed.
ping as students flock into the armed
services.
What college enrollments will be
next fall is anybody's guess. Drafting,
of 18-year-olds would strike another
blow.
The Association of American Col
leges, meeting in Atlantic City re
cently, fears that many small colleges
may be closed by the wholesale in
duction of men of college age.
College presidents and deans from
67S institutions proposed that ROTC
(Reserve Officers Training Corps)
programs be increased and. that stu
dents in theology, medicine, dentistry
and other health fields be deferred
from the draft.
They also advocate that qualified
young men who have completed basic
training be furloughed to colleges for
further education to maintain the flow
of educated personnel as an important
element of national strength.
Dr. James' B. Conant, president of
Harvard, proposed that a three-yeas
degree be granted and that graduate -and
professional school terms i bo-
shortened.
In his annual report to Harvard
Overseers, Dr. Conant said he foie--saw
partial mobilization but not glo
bal war for. many years.
Dr. Conant also suggested that fac
ulty members be rotated In federal;
administrative ' service rather . than,
signing up "lor the duration" as wash,
the custom jn World Wars I and IL
Other educators, stress the need of ,
expanding training for college women.,
' Some proposals even approach the ,
hystericalr There are advocates that
colleges revamp' curricula to admit
youths of 1ft after completion of two
' high school years. ' - J .
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