U.S. BUDGET SURPLUS

Press, Volume XCIX, Issue 29262, 21 July 1960, Page 13

U.S. BUDGET SURPLUS

• Election Weapon NEWPORT (Rhode Island), July 20. President Eisenhower would announce today that the United States Government had closed its Budget books for last year with a surplus of up to 1000 million dollars, United Press International reported. The President would give the exact figure at the vacation White House at Newport this morning because he considered the Budget picture “exceptionally glowing,” U.P.I. said.

The news agency said the Republicans were certain to use the surplus—the third in seven Eisenhower Budgets—as a major selling point in the coming Presidential election campaign. Mr Eisenhower and his key lieutenants repeatedly had called for “fiscal, responsibility”-in the face of Democratic spending proposals. U.P.I. said an unforseen spurt in individual tax payments, more than offsetting a drop in corporate tax receipts, was responsible for the increased revenue. The surplus would be used to reduce the national debt, a prime objective of the Eisenhower Administration.

In his ”hold-down-the-expenses” campaign, Mr Eisenhower freely used his veto power to block what he considered extravagant spending programmes. Democrats were not likely to criticise the surplus itself, U.P.I. said, but they had made it clear that they would rap the Eisenhower Administration during the campaign for what they considered neglect of civilian and military needs in the drive for economy. Republicans were expected to reply that the Administration’s fiscal policies had curbed inflation and maintained the value of the dollar.