Monday, Jun. 02, 1952

The Reluctant Spenders

In the heyday of Marshall Plan spending, ECAdministrator Paul Hoffman had one persistent warning for the governments of Europe: after the Marshall Plan expires in 1952, the U.S. Congress will be reluctant to vote any more funds for economic aid. Last week a reluctant House of Representatives made good Hoffman's prediction, voted to slash some $1.7 billion--most of it in economic aid and Point Four funds--out of the Administration's $7.9 billion Mutual Security bill.

The big cuts came in two days of runaway voting which the Democratic leadership was powerless to head off. Toward the end of the first day of debate, the Democrats mixed up their signals and allowed too many Administration members to go home early. The Republicans suddenly found themselves a majority on the floor, seized control and never let go. G.O.P. Boss Joe Martin deftly fended off Democratic delaying maneuvers, pushed through two drastic economy amendments sponsored by Ohio's John Vorys. These cut a total of $726.5 million and came on top of the $1 billion cut recommended by the House Foreign Affairs Committee.

Speaker Sam Rayburn himself descended from his rostrum to try to repair the damage. Said he: "I am not happy about our situation in the world, nor in the U.S., nor in this House . . . I notice this House, in glee, and . . . without a great deal of reason, cutting the appropriations in this bill . . . below what those in charge, and who are supposed to know the most about world affairs, said was necessary." But the Vorys cuts carried--the most important one by 221 to 137 (160 Republicans and 61 Democrats--mostly Southern --voted for, 127 Democrats and ten Republicans voted against).

This week, in the Senate, the Administration launched its battle to regain the lost ground. The Senate Foreign Relations Committee had recommended a cut of $1 billion in the Truman program, but Committee Chairman Tom Connally promptly made it clear he would yield no further. "The way to get real economy is to defeat this bill entirely, give them nothing, vote for not one dime for the Mutual Security program," roared Texas Tom. "Then you can go home and stretch yourselves before your constituents and say, 'I saved $7 billion'--and let the world go to hell."

Last week the House also: P: Voted down an amendment raising Social Security retirement payments, by refusing (150-140) the two-thirds vote necessary to make the amendment a special order of business. Reason: most members wanted additional time to study American Medical Association charges that one provision in the bill added up to "socialized medicine."

The Senate:

P: Confirmed (52-18) Federal Judge James P. McGranery, 51, of Philadelphia as Attorney General of the U.S. P: Heard a report from its Banking & Currency Committee recommending that the Wage Stabilization Board 1) be stripped of its industry and labor members and be composed solely of public members; 2) be limited to acting only on stabilization of wages and not on other labor demands (e.g., the union shop).

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