COLOSSAL FIGURES

Manawatu Standard, Volume LXIV, Issue 39, 14 January 1944, Page 5

COLOSSAL FIGURES

U.S. WAR BUDGET

FLOOD OF PRODUCTION (N.Z. Press-Association. —Copyright.) (Rec. 11 a.m.) RUGBY, Jan. 13. President Roosevelt, in his Budget Statement to Congress, estimated the United States war expenditure in the coming financial year at 99,000 million dollars, contrasting with the current year's estimate of 92,000 millions The President explained that the Budget covered the year ending June 30, 1945. "This is a period which, I am certain, will be crucial in the history of the States and of mankind, a period which will see decisive action in this global war," he said. "While we move toward the complete defeat of our enemies we must lay the groundwork for the return of the nation to peaceful pursuits. "We shall continue to adjust our war programme promptly to changing strategic necessities. I shall use all the authority available to prevent needless expenditures. As we win the battle of production of the instruments of modern war we enter a period of decisive action in many battlefields throughout the world. We have attained superiority in war production. Production alone, however, does not assure victory; we must fight, and fight hard." Mr Roosevelt said that the military expenditure in 1940-41 was only onetenth of the current annual estimate. The rapid increase in war expenditures mirrored the' gigantic effort in which the country had converted and diverted half of its resources to war purposes. In the production of munitions the United 'States now almost equalled the rest of the world. A situation had now been reached in which there was an excess of supplies of some types of munitions and deficiencies in others. These excesses and deficiencies depended on rapidly changing strategic conditions. Every effort was made to adapt production to changing conditions as rapidly as possible. A special committee undei the Joint Chiefs of Staff was scrutiny ising military requirements item by item, cutting out or cutting back the programme in the light of strategic developments. The Lend-Lease requirements of the Allies were subject to a similar scrutiny. The construction of many escort vessels had been cancelled so as to push on the construction of landing vessels. In a number of cases labour and material had also been released for urgent domestic needs of indirect war imnortance. TAKING NO CHANCES.

The estimate of 90,000 million dollars was based on the assumption that the war would continue throughout the fiscal year 1945. "In our military planner and in our production and financial plan, ning . .wo cannot rely safely on hopes-of an earlier victory," the President added.

"Tf the. war should continue on nil fronts throughout the year or longer we shall be prepared. If an unfavourable turn in military events should result in an increased demand for munitions we shall, with the available facilities, pour out even more munitions than those scheduled and the expenditure will bo "larger." Mr Roosevelt then gave figures showing that he now recommended specific appropriations of 17,000 million dollars, of which 7000 millions were for war purposes. In the spring appropriations would be asked for the Armed Forces totalling 53,000 million dollars, including: Army 20.000 millions, and Navy, 33,000 millions. In 1945 the appropriations were estimated at 70,000 millions, plus 38,000 millions in rcappropna'tions, making a total of 108,000 millions for that vear. This'compares with 115,000 millions in the 1944 fiscal year. By the end of the fiscal year 1945 the United States will have appropriated about 397,000 million dollars, but of that sum 105.000 millions will be unexpended, so that the total cost of the war to that time will he about 292,000 millions. The total war programme from June, 19.40. to December, 1943. reached 344.000 millions. By adding to this 42,000 millions in new appropriations, 10,000 millions in new contracts, 1500 millions for the army •and navy between now and May 1, a total of about 397,000 millions is reached.—Official Wireless.