Truman Suggests U.S. Scholarships; Smithies Foresees No Raise in Taxes

President--Truman yesterday asked Congress for a $30,000,000 federal scholarship fund to help capable high school graduates go to college. He included this request in his $35,444,000,000 budget proposal.

Dr. Earl J. McGrath, Commissioner of Education, said that both "aptitude and means" tests would determine the stipends of the selected students which would not exceed $800 a year. The youths would choose their own colleges.

McGrath stressed that there would be no federal control, but rather that each state would determine the details of the tests and would dole out the money.

Meanwhile, other aspects of Truman's unprecedented peace-time budget met varying reactions. Congressmen of both parties, many of whom face an election year, attacked the budget as extravagant, inflationary, and "shocking."

Arthur Smithies, professor of Economics, said last night that the budget entails inflationary dangers, but that "national security warrants the risk." Expanding this idea, Smithies stated that Congress probably would not touch Truman's 51 billion dollar military request, the largest single item in the budget.

Despite the fact that the President wants a four and a half billion dollar tax rise. Smithies foresees no such boost in the fiscal year 1952-53.

Commenting on the rash of angry shouts in the nation's capital. Smithies feels that Congress might do a little subtracting, but doubts "if they'll do very much cutting."

This budget is bigger than any two years spending, put together, in the first five years after World War II.