All this is cause for concern—­but it is not cause for panic.  For our monetary and financial position remains exceedingly strong.  Including our drawing rights in the International Monetary Fund and the gold reserve held as backing for our currency and Federal Reserve deposits, we have some $22 billion in total gold stocks and other international monetary reserves available—­and I now pledge that their full strength stands behind the value of the dollar for use if needed.

Moreover, we hold large assets abroad—­the total owed this nation far exceeds the claims upon our reserves—­and our exports once again substantially exceed our imports.

In short, we need not—­and we shall not—­take any action to increase the dollar price of gold from $35 an ounce—­to impose exchange controls—­to reduce our anti-recession efforts—­to fall back on restrictive trade policies—­or to weaken our commitments around the world.

This Administration will not distort the value of the dollar in any fashion.  And this is a commitment.

Prudence and good sense do require, however, that new steps be taken to ease the payments deficit and prevent any gold crisis.  Our success in world affairs has long depended in part upon foreign confidence in our ability to pay.  A series of executive orders, legislative remedies and cooperative efforts with our allies will get underway immediately—­aimed at attracting foreign investment and travel to this country—­promoting American exports, at stable prices and with more liberal government guarantees and financing—­curbing tax and customs loopholes that encourage undue spending of private dollars abroad—­and (through OECD, NATO and otherwise) sharing with our allies all efforts to provide for the common defense of the free world and the hopes for growth of the less developed lands.  While the current deficit lasts, ways will be found to ease our dollar outlays abroad without placing the full burden on the families of men whom we have asked to serve our Flag overseas.

In short, whatever is required will be done to back up all our efforts abroad, and to make certain that, in the future as in the past, the dollar is as “sound as a dollar.”

III.

But more than our exchange of international payments is out of balance.  The current Federal budget for fiscal 1961 is almost certain to show a net deficit.  The budget already submitted for fiscal 1962 will remain in balance only if the Congress enacts all the revenue measures requested—­and only if an earlier and sharper up-turn in the economy than my economic advisers now think likely produces the tax revenues estimated.  Nevertheless, a new Administration must of necessity build on the spending and revenue estimates already submitted.  Within that framework, barring the development of urgent national defense needs or a worsening of the economy, it is my current intention to advocate a program of expenditures which, including revenues from a stimulation of the economy, will not of and by themselves unbalance the earlier Budget.