Closely related to the mission of the Defense Department is the task of the Federal Civil Defense Administration.  A particular point of relationship arises from the fact that the key to civil defense is the expanded continental defense program, including the distant early warning system.  Our Federal civil defense authorities have made progress in their program, and now comprehensive studies are being conducted jointly by the Federal Civil Defense Administration, the States, and critical target cities to determine the best procedures that can be adopted in case of an atomic attack.  We must strengthen Federal assistance to the States and cities in devising the most effective common defense.

We have a broad and diversified mobilization base.  We have the facilities, materials, skills and knowledge rapidly to expand the production of things we need for our defense whenever they are required.  But mobilization base requirements change with changing technology and strategy.  We must maintain flexibility to meet new requirements.  I am requesting, therefore, that the Congress once again extend the Defense Production Act.

Of great importance to our nation’s security is a continuing alertness to internal subversive activity within or without our government.  This Administration will not relax its efforts to deal forthrightly and vigorously in protection of this government and its citizens against subversion, at the same time fully protecting the constitutional rights of all citizens.

A third objective of the Administration is: 

FISCAL INTEGRITY

A public office is, indeed, a public trust.  None of its aspects is more demanding than the proper management of the public finances.  I refer now not only to the indispensable virtues of plain honesty and trustworthiness but also to the prudent, effective and conscientious use of tax money.  I refer also to the attitude of mind that makes efficient and economical service to the people a watchword in our government.

Over the long term, a balanced budget is a sure index to thrifty management—­in a home, in a business or in the Federal Government.  When achievement of a balanced budget is for long put off in a business or home, bankruptcy is the result.  But in similar circumstances a government resorts to inflation of the money supply.  This inevitably results in depreciation of the value of the money, and an increase in the cost of living.  Every investment in personal security is threatened by this process of inflation, and the real values of the people’s savings, whether in the form of insurance, bonds, pension and retirement funds or savings accounts are thereby shriveled.

We have made long strides these past three years in bringing our Federal finances under control.  The deficit for fiscal year 1953 was almost 9-1/2 billion dollars.  Larger deficits seemed certain—­deficits which would have depreciated the value of the dollar and pushed the cost of living still higher.  But government waste and extravagance were searched out.  Nonessential activities were dropped.  Government expenses were carefully scrutinized.  Total spending was cut by 14 billion dollars below the amount planned by the previous Administration for the fiscal year 1954.