During those 2 months we spent $676 million less than we spent last July and last August, a year ago

This is one of the most important issues of the campaign--whether the Government is going to turn its back on the mounting needs of a growing country under the pretense of a 'conservative fiscal philosophy.'

Our aid became increasingly selective and concentrated in fiscal 1963.

Fiscal 1963 saw the beginning of significant economies in the management of aid programs by the Agency for International Development.

Policies designed to protect our balance of payments produced major results in fiscal 1963.

An unbalanced economy does not produce a balanced budget.

Unless we grow more, unless we employ fiscal and monetary policies that stimulate employment, we are going to have a recession in the winter of 1961.

I am sure that the first thing we must do is balance the budget.

I share your concern about the magnitude of Federal expenditures.

I wish to emphasize to the full extent of my ability the necessity, as a fundamental to recovery, the utmost economy of governmental expenditure of all kinds.

Pending the compilation and analysis of this statement I wish to suggest that you refrain from actually obligating money available for expenditure during the current fiscal year except in those cases where such postponement or elimination will clearly be to the detriment of the public welfare.

Our American system requires that municipal, county, and State governments shall use their own resources and credit before seeking such assistance from the Federal Treasury.

Prosperity cannot be restored by raids upon the Public Treasury.

The normal amount now is $125 million a year, and the provisions are that $75 million to $80 million be advanced in the balance of this fiscal year, to be repaid by donations over the subsequent 5 years.

I find from the Director of the Budget that the estimate at the first of June indicates that we shall close the fiscal year on July 1 with a surplus of about $100 million to $110 million.

Pursuant to authority contained in Sections 5 and 6 of the Act of Congress, approved June 10, 1922, the rates prescribed in said Act are hereby announced as effective for the fiscal year ending June 30, 1930, for the rental and subsistence allowances of officers of the various services entitled thereto.

I don't think in all my experience, which has been very large with people that come before me in and out of the Government with proposals for spending money, I have ever had any proposal from anyone as to what could be done to raise money, and very few suggestions of what could be done to save any money.

Sometimes linked with the proposal for an immediate large expenditure is the suggestion that it ultimately will result in a saving.