A Billion Saved

"The American people have responded and will respond to the leadership of a political party which evidences a healthy regard for the people's money," said Treasury Secretary Robert B. Anderson to the Republican platform committee last week. And as a monument to the Eisenhower Administration's healthy regard, Anderson & Co. posted a $1.1 billion surplus for the 1960 fiscal year (closing June 30). By snapping back into the black after 1959's peacetime record deficit of $12.4 billion, the U.S. actually realized a year-to-year improvement of some $13.5 billion, which itself is a record.

The surplus was won despite the steel strike, which lopped some $500 million off expected Government income, and despite defense spending that was $225 million above estimates. Principal factors were relentless pressure on all fronts against federal spending--16 of the 22 major Government agencies spent less than anticipated--and some luck down on the farm. Bad weather at home and good demand from abroad made for lighter wheat crops and heavier cotton exports, helped cut Department of Agriculture outlays by $277 million.

Only November could tell whether, as Anderson hoped, the voters would bless the Republicans for the surplus--or whether, as an aftermath of big spending promises made during the campaign, the surplus might some day wind up in the Smithsonian with such artifacts of the good old days as Dolley Madison's inauguration gown and the Spirit of St. Louis.

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