Cabinet also agreed to "contain public spending to promote savings that can be redirected to subsidise the price of essential products," he said.

This will promote savings and return as much as $20 billion this year to the private economy.

But "this has the opportunity to confront a number of challenges, to put in place a tax structure that promotes long-term growth, capital formation and savings."

Further reductions are surely feasible and could promote savings on defense in both countries.

He said that was essential to promoting savings and investment and to stimulate the flagging economy.

His last televised work with Benny was in 1970, when they both appeared in a public service announcement together to promote savings and loans.

Mr. Hamilton said the long-term health of the economy required further reductions in the budget deficit to promote savings.

Initiatives to promote savings are expected to be presented Monday in President Bush's 1991 budget proposals.

Congress can promote private savings in a number of ways.

Other studies addressing effective ways to promote savings among the poor show promise for commitment savings accounts that limit the owner's access to the funds.