Monday, Sep. 14, 1959

Balance in Jeopardy

Not only the thick, juicy spending slabs but the little, thin million-dollar slices can unbalance the delicate 1960 budget, warned the White House's sharp-eyed budget inspectors last week. Deputy Budget Director Elmer B. Staats told the Senate Post Office and Civil Service Committee that the bureau's January forecast of $77 billion spending had already been raised "significantly" (to about $79 billion, by relatively trivial millions). Result: the paper-thin $70 million surplus appears to be wiped out completely.

Since Congress has refused to pass a requested $350 million increase in postal rates and to cut down farm price supports, only better-than-hoped-for expansion in business can raise tax revenues to keep the 1960 budget at or near balance. So Staats sternly opposed annual slices of $15.5 million to $22 million proposed for health benefits to retired federal workers.

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