The Harnessing of Two Logics

The basic problem of the U.S.--and of the free world--is to preserve its dynamic economic and political freedoms as it builds up military defenses against global Communism. This is a problem which the U.S. has not really met squarely since the Communists began their march at the end of World War II. Last week President Eisenhower was ready to come to grips with it.

Fixing his heavy, horn-rimmed glasses in place, the President faced his weekly press conference and began to read in a low voice. "I would like to present to you . . . with fairly broad strokes, what I consider the sensible framework . . . [for] an ever more effective posture of defense." Quickly he came to the heart of his defense-security philosophy: "I have always firmly believed that there is a great logic in the conduct of military affairs. There is an equally great logic in economic affairs. If these two logical disciplines can be wedded, it is then possible to create a situation of maximum military strength within economic capacities.

"If, on the other hand, these two are allowed to proceed in disregard one for the other, you then create a situation either of doubtful military strength, or of such precarious economic strength that your military position is in constant jeopardy. It has been the purpose of this Administration ever since it took office, finding itself confronted with a crazy quilt of promises, commitments and contracts, to bring American military logic and American economic logic into joint, strong harness."

Continuous Improvement. In this harness, said the President, U.S. policy will not be based on the philosophy of preparing for war by,any certain year of maximum exposure, "but will be based on the sounder theory that a very real danger not only exists this year but may continue to exist for years to come; that our strength, which is already very real, must now be made stronger, not by inefficient and expensive starts and stops, but by steady, continuous improvement." Under this "new, fresh" policy, the "old misleading labels" would be changed, the "paper divisions and cardboard wings" disregarded, the "artificial arithmetic" erased, and a long-term program established.

Then the President got down to figures: "This morning I told the legislative leaders that already we can see our way clear to ask the Congress to appropriate at least $8.5 billion less new money for fiscal year 1954 than had been asked for by the previous Administration."

Harry Truman had asked for $72.9 billion in new appropriations--$41.5 billion for the military, $7.6 billion for foreign aid, $2 billion for atomic energy, and $21.8 billion for other purposes. Dwight Eisenhower did not break down his proposed cuts, but defense (which eats up almost two-thirds of the budget) would have to bear the brunt. Bob Taft later told reporters how the slicing would be done: $5 billion off the military budget, $1.8 billion from foreign aid, $250 million out of the atomic-energy program, and $1.2 billion in the other departments.

"I Shall Sleep Well." Would this cut mean a balanced budget and a tax cut in 1954? No, said the President. This is a cut in requests for new appropriations (some of which will be spent in 1954. some much later). The deficit and taxes will be controlled by 1954 expenditures, partly from appropriations approved by Congress before this year. However, progress is being made every day toward an eventually balanced budget.

To implement the new approach. Eisen hower had sent Congress a plan to reorganize the Department of Defense (see below). But he was not ready to answer in detail the question which correspondents tried to ask in a number of ways: How will the cuts affect the size and strength of the Air Force, the Army and the Navy? There would be more buildup than originally planned during 1954, the President said, but it is not yet possible to say what the final result will be.

When the President's news hit the headlines, his economy-minded critics were afraid he had not cut far enough, and defense-minded critics feared that the results of his cuts might impair U.S. security. But any who thought Dwight Eisenhower had lost his sense of balance between the two logics had not listened to his short, off-the-cuff speech at midweek to the U.S. Chamber of Commerce. Said he: "These [defense-security] costs are going to be lowered at the earliest possible moment. But they are never going to be lowered beyond that point that you can, with justification, say: 'I shall sleep well tonight because my country, its system, its liberties, are safe.' "

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