1 0 MAIL TRIfUNE, IMM, Oron, Monday, January 1 9. 1 959
Ike's
Budget (Sail
s voir ..Boost
Dm
uissiilo
Washington -(UPD- President
Eisenhower charted an $800,
000,000 increase in missile
spending today and disclosed
that the first Atlas intercon
tinental missiles will be in
combat units by summer.
His record peacetime de
fense budget also, unfolded
plans for expanding air-atomic
power with new supersonic
and missile-launching bomb
ers to meet "any major threat
to our national security."
. The military spending blue
print sent to Congress called
for $40,945,000,000, to run the
armed forces in the fiscal
year starting July 1.
By putting the squeeze on
other elements of military
strength, the President was
able to expand missile, bomb
er and space research outlays
while holding the total in
crease over this year's budg
et to $145,000,000. .
As if in challenge to skep
tical Democratic congressmen
who have contended the lid
on defense spending is too
low, Eisenhower said:, ,
"This budget assures that
essential defense needs. are
met."
He said his aim Is a well-
rounded force, under, unified
direction and properly
equipped, ready for any land
of military emergency.
The military forces of fis
cal 1960 will comprise 2,520,-
000 men with an air armada
of more than 29,000 planes, a
fleet of 864 ships, 17 Army
and Marine divisions and
growing missile units for both
defense and offense.
For the first time since the
Korean war ended, Eisenhow-
ed did not order any substan
tial cuts in manpower. He
told the Air Force to trim by
a "moderate" 5,000, but add
ed that with the Communists
"constantly probing the free
world positions" no .further
cuts were warranted.
Missiles got dominant-emphasis.
Their procurement was
allotted $3,825,000,000, up
$493,000,000, and were given
a lion's share pf the $364,
000,000 increase wor weap
ons research, development
and testing.
Eisenhower said the first
Atlas missiles "will be. at
launching sites" by June 30
when the current fiscal year
ends and "additional missiles
will be put in place in 1960
The first squadron of . the
, 6,300-mile -missiles, at Chey
enne, Wye, will have about
10 missile launchers:
The President also said
more Thor and Jupiter inter
mediate . range missiles will
be deployed over the next 18
months. The first v 1,500-mile
range Thors are in England
now and Jupiters are slated
for Italy. .
Money for the Titan inter
continental ballistic missile,
a year behind the Atlas in de;
velopment, was increased 50
per cent. The- Minute Man
ICBM, a solid-fueled, easier-
to-handle weapon expected to
be operational in 1963, was
down for 40 per cent more.
Nike. Hercules, Bom are
and Hawk anti-aircraft mis
siles, all atomic-capable, were
slated for expanded produc
tion.
The Army was told .to . end
production of . its 200-mile
range Redstone r missile, de
ployed to Germany last sum
mer, and . speed up its succes
sor, the solid-fueled Pershing
The Navy will press devel
opment of its Polaris to be
fired from nuclear subma
rines. But it got no go-ahead
to build more than the nine
Polaris-carrying subs now
scheduled. . '
Eisenhower said develop
ment of the Nike-Zeus missile
system, for defense against
ballistic missiles, would be
speeded.
Other highlights of the new
weapons program:
Greater production of the
B52G bomber and the Hound
Dog guided missiles it will
carry.
The B58 bomber, which
flies about 1,300 miles an
hour, will start to replace the
Strategic Air Command's 500-
mile-per-hour B47.
Development of the 2,000-mile-an-hour
B70 jet bombers
and F108 long-range inter
ceptor of similar speed ' will
be pushed. .
Glance at Fiscal
Budget for 1960
Washington -4CP0- The fiscal
1962 budget at a glance:
Taxes-lVi cents a gallon in
crease in gasoline tax. All
other present taxes continued.
Postal -Another $350,000,-
000 boost in postal rates; no
details on what rates would
be raised. i -
Spending - Down . $3.9 bil
lion from this year's record
peacetime high of $80.9 bil
lion; nearly $41 billion for de
fense, with accent on missiles.
Revenue Income up $9.1
billion from this year's $68
billion, with anticipated sur
plus of about $100 million,
Washington -TOPD- President
Eisenhower today envisioned
world-girdling network of
weather stations in space.
He disclosed long-range
plans for such a network in
message to Congress budg
eting billions for space ex
ploration, atomic arms and
power, and scientific research
and development in many
fields.
In all three categories, he
said,' the government pro
poses to set new spending rec
ords during the fiscal year
starting July 1.
The Pesident told Congress,
however, that he is budgeting
nothing for nuclear weapons
testing in fiscal 1960 "on the
assumption" that a test ban
agreement will be reached in
the East-West negotiations
now going on in Geneva.
But he said the atomic pro
ving grounds in Nevada and
the Pacific will be maintain
ed on a standby basis for
resumption of weapons tests
if the Geneva talks fail; And.
Worfld-(Eordlliii.g Network off Weather Stations
Dn Space Envisioned in Eisenhower's IBudget
he added that this country
will go ahead with "devel
opment and demonstration"
of peaceful uses of atomic ex
plosions. Space Exploring
The president said "exten
sive space explorations are
being initiated." He forecast
manned space flight, explor
ation of the moon and plan
ets, and use of satellites "as
relays for the intercontinent
al transmission of messages,
voice, and television."
Other programs, he said,
"look toward the ultimate es
tablishment of a worldwide
system of satellite weather
observation."
Being developed, he said,
are nuclear rocket engines
and a chemically fueled en
gine with a million pounds
of thrust. The most powerful
existing US. rocket engines
have upwards of 300,000
pounds of thrust.
y For the . National Aeronau
tics and Space Administration
the President asked authority
to commit $485,000,000, an
increase of $135,000,000 over
the current fiscal year.
He estimated actual spend
ing by NASA in fiscal 1960
at $280,000,000 compared
with an estimated $153,000,
000 this year and $89,000,000
by its predecessor agencies in
fiscal 1958.
These expenditures include
only those for civilian space
projects by the civilian space
agency. Administration sour
ces estimated total federal
space spending, including de
fense department projects, at
roughly three-quarters of a
billion dollars.
The President also budget
ed record amounts for the
Atomic Energy Commission
and the National Science
foundation. Here are esti
mates of their spending this
year and next compared with
1958:
Atomic Energy commision:
1958, $2V4 billion; 1959, $2V4
billion; 1960, $2 billion.
National Science founda
tion: 1958, 050 million; 1959,
$110 million; 1960, $140 mil
lion. In the new year the
Science Foundation will put
out $80,000,000 in research
grants, $20,000,000 more than
in 1959 and more than twice
the 1958 total. ,
AEC Budget
Most of the AEC's budget
increase will go for raw ma
terials. Weapons will be pro
duced "at current high levels
to meet a variety of military
needs."
The AEC will continue to
develop ship and rocket pro
pulsion, civilian power, and
nuclear explosives "for such
peaceful purposes as mining
and earth moving."
Also in the budget are
three multi-billion volt atom
smashers ; nd new experimen
tal devices for turning the H
bomb energy into peaceful
power.
The President estimated to
tal federal expenditures by
all agencies for scientific re
search and development at
$5,484,000,000. This com
pares with $4,841,000,000 in
fiscal 1959 and $3,498,000,000
in 1958.
FORESIGHT
Springfield, 111. -(UPD- When
Illinois Gov. William G. Strat
ton left Saturday for a week
of sking at Sun Valley, Idaho,
he took his physician, . Dr.
Kenneth Schepp, with him
just in case. "I think this
shows foresight," said Strat-ton.
GLASS
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Record Spending Proposed for
Water Resources Development
Washington (UPD Presi
dent Eisenhower today pro
posed a record-high spending
program for development of
the nation's water resources,
but for the second year run
ning he ruled out any new
construction starts.
In his budget recommenda
tions to Congress. Eisenhower
called for total expenditures
of $1,115,000,000 for Bureau
of Reclamation and Army En
gineers projects in fiscal
1960.
The figure compared to the
previous high of $1,073,000,
000 which was actually ap
propriated for work on flood
control, navigation and irriga
tion projects of the two agen
cies in fiscal 1959.
The total increase resulted
from higher' recommended
expenditures for the Army
Engineers while the Reclama-
Summary of Major
Budget Proposals
For Fiscal 1960
Washington IUPD Here is
a summary of major proposals
in President Eisenhower's fis
cal 1960 budget: "
Taxes - Raise gasoline tax
1V4 cents a gallon to pay for
rising costs of highway con
struction. Boost aviation gas
oline tax 2V4 cents a gallon
and impose a new tax of 4Vi
cent a gallon on jet fuel
passing both on to consumers.
Extend present corporate
and excise tax rates another
year to June 30, 1960. No in
come tax cuts this year but
a promosed reduction "in the
reasonably foreseeable fu
ture." if budget stays bal-
lanced.
, Defense - $40,945,000,000
for defense, about $145,000,
000 more than - fiscal 1959,
with heavy emphasis on mis
siles and defenses against mis
sile attack. Slight cut in Air
Force manpower would be
only change in active duty
personnel.
Space - National Aeronau
tics and Space Agency would
get : $280,000,000 next year
and $45,000,000 added to this
year's , $153,000,000. Long-
range projects include man
ned space flight, missile shots
to the moon and planets, and
worldwide network of weath
er and communications satel
lites. Postal Rates -Another $35,
000,000 increase. Specific pro
posals will come ' later.
Farmers- A $779,000,000
drop in farm aid, bringing it
to $6,000,000,000. Advance
conservation authorizations
reduced; legislation promised
to cut price support outlays.
Water Projects- No new
starts; stretch-outs of existing
projects where possible. Nev
ertheless, on all-time high
spending total of $1,100,000,
000. Education-$150,000,000 for
loans to college students and
grants to states under science
keyed defense education pro
gram; $75,000,000 added to
this year's $40,000,000. No
mention of aid for school con
struction. Aid of $181,000,
000 proposed for school dist
ricts affected by federal in
stallations, . with increased
.state-local participation stress
ed.
Federal subsidies-Increase
state local-private participa
tion in slum clearance, pub
lic assistance, disaster relief
and other programs. Elimin
ate Federal aid to states for
vocational education and the
waste treatment facilities aft
er 1960.
Interest rales -Encourage
private lending by raising in
terest rate ceilings on veter
ans and FHA housing loans.
Boost interest rates on rural
electrification, college hous
ing and ship mortgage loans
to cover government costs on
them.
Arialion-A four - year pro
gram to share costs of build
ing runways and control tow
ers but withdrawal from air
port grants in the future.
Foreign aid-Total of. $3,
498,000,000 with overall re
duction of $383,000,000 from
this year. Military aid would
drop by $462,000,000 but
economic aid would rise $79,-
000,000 with increased emph
asis on repayable "develop
ment loans."
Housing No authorization
for new public housing. ; A
six-year $1,350,000,000 pro
gram of grants for urban re
newal, with states and cities
called upon to pay more, plan
better and obtain private fi
nancing.
Veterans - A $110,000,000
drop from last year's $5,100,
000,000 pensions would be
granted on the basis of need,
Pension program would be
modernized "in light of soc
ial developments and in
changes."- ' -
Atomic energy-No weapons
tests budgeted: continued em
phasis onf peaceful uses of
nuclear power and develop
ment of nuclear-driven naval
vessels; no step-up in plans
for developing an . atomic
plane. .
Debt limit-This year's $12,
900,000,000 deficit will in
crease public debt to $285,-
000,000,000 by June 30. Re
quest will be made to boost
permanent debt limit by $2,-
000,000,000 to that figure.
Other legislative recom
mendations-Statehood for Ha
waii; extend minimum wage
and unemployment compen
sation coverage; crack down
on racketeering in labor un
ions; allow TVA to sell rev
enue bonds to finance power
facilities; a $55,000,000 pro
gram of loans and grants to
areas with chronic unemploy
ment.
tion Bureau program was cut
down from last year.
The. President asked for
$864,00,000,000 for the "en
gineers, compared to $808,-
000,000 actually appropriated
in fiscal '59. He requested
$251,000,000,000 for the
Reclamation Bureau, compar
ed to $265,000,000 appropriat
ed for ' the current business
year. ,
Eisenhower continued to
take the long view in his ap
proach to the water program
with his fiscal '60 recommendations.
He said that because of the
extremely high level" of
federal commitments on proj
ects already underway, he
would not support starting
any new ones in the coming
fiscal year.
Eisenhower pointed out
that of the total $1,100,000.
000 recommendation for 1960,
an estimated $869,000,000
would be spent on construc
tion of p r o j ects already
started.
He said that the amount of
monev that would be re-
ouired in the next few years
to complete the water build
ing program already under
way would be so great that
no new projects should be
undertaken at this time.
Prof est Certain
The President's recommen
dations were certain to bring
a new storm of protest from
Western senators and con-
pressmen, who went over his
head last, year and succeeded
in getting new projects autho
rized despite his fiscal 59 no-new-starts
edict. '
Interior Secretary Fred A.
Seaton, apparently anticipat
ing another adverse reaction
from capitol hill, said the
President's recommendations
are "sound" and "realistic."
Seaton said that the water
program was over-ioaaea
with construction starts under
D e m o c ratic administrations
and that the President's pro
posals will "help bring it
under control.'.
$32 Per Capita Cut
In Federal Spending
Washington -(UPD- President
Eisenhower's fiscal 1960
budget adds. up to a $32 per
capita cut in government
spending compared to this
years figures.
Part of the cut is based on
a bigger population-more peo
ple to share the cost.
The new budget calls for
spending $77,000;000,000, Bas
ed on an estimated population
of 179,000,000 on Jan. 1, 1960
-the middle of fiscal 1960-this
figures out to $430 for every
man, woman and child in the
United States.
This year's spending will to
tal about $80,900,000,000.
Based on a population of 175,-
000,000 as of Jan. 1, 1959-the
middle of the current fiscal
year - this comes to $462 per
capita.
Oregon Projects
Get $35,000,000
Washington -flJPD- President
Eisenhower today proposed a
nearly $35,000,000 program
for Corps of Engineer and
Reclamation Bureau projects
in Oregon during fiscal 1960.
He asked Congress to ap
propriate $9,600,000 for work
on Cougar Reservoir, $8,300,-
000 for Hills Creek Reservoir;
and $7,000,000 for the Dalles
Dam, all engineer projects.
The President also asked
for the following amounts for
additional corps projects:
Columbia River Channel,
Vancouver , Wash., to the
Dalles, Ore., $1,600,000;
Rogue River at Gold Beach,
$1,500,000; Multnomah Drain
age District No. 1, $703,000;
Willamette River Bank Pro
tection, $500,000; and Inter
state Bridge, Ore. and Wash.,
$1,130,000.
In addition, he asked . for
these amounts for Reclama
tion Bureau projects: .
Crooked River, $2,833,000;
Rogue River Basin, Talent Di
vision, $2,700,000; Wapinitia
Project $39,000; and the Kla
math Project, $522,000.
BOREDOM CURED
Reading, England -flJPD-Old
age pensioner Walter Kilmin
ster, 80, who married Mrs.
Constance Mace, 64, after
only two dates, explained: "I
was bored and I wanted some
thing to do."
HOST:
TO
im
WORLD!
1 853 ' J959
Yes, every ona of us, who lives here In Oregon, will literally be a host at this greatest of all birthday parties
. . : and the Stanford Research Institute says that eight million guests from all parts of the world will attendl
Although both the Centennial Exposition and the International Trade Fair will be held in Portland, starting
June 10th, actually ALL OF OREGON will become a vast centennial exposition grounds for the entire year,
1959! Centennial year offers an opportunity to tell the world of Oregon's scenic beauties, her cities, her people
her growing industries and bustling trade. Our world-wide guests will see first hand our great resources,
enjoy our matchless tourist attractions, learn about tha rich-heritage of history that is ours-the faith and cour
age of the pioneers who followed the Oregon Trail a century ago! . . ., Oregon's Centennial observance is
important to us, here In the Rogue River Valley. We have much to offer and to show Exposition guests who
come in 1959. Here we have incomparable, sapphire-blue Crater Lake, great forests and sweeping farms and
orchards, historic Jacksonville and the Shakespearean Festival! ... We must all be GOOD HOSTS . . . offer
our warmest brand of hospitality to Centennial guests . . . tidy up our roadsides and communities and I put
our best foot forward when company comes. It will be profitable as well as pleasant to be hospitable hosts
In 19591 . ... .
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JJJ LrQ Li ijJ
CELEBRATION
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