Evening Star Newspaper, June 27, 1923, Page 4

! (VERHARDING VST Welcoming Program for First " _President—Guest to Be Most Elaborate. £gecial Dispateh to The Star. (l\'l AU, Alaska, June 27.—Alaska, Kreat northern empire of the es, is preparing a welcome fof I'resident Harding and his party Ut will forever belie the frigidity of the frozen north, Fi3 in 1867 that PR W hoisted at Sitka. the old Ru: sfn capital of Alaska, and fifty-six X come and gone before a Fesident of the United States felt that he could visit this vast territory 1€ history repeats itself, fifty-six more years will roll by before an- other President comes, so this corre- spondent, in this dispatch, is going the editorial “we” with im- ause, perhups, he will another chance. Hence recorded that we are cer- £oing to extend some greeting Harding ANl Alaska Alert. 1 weather the past month tions that it will continue sn for the next two months to come. all Alaska is alert to the histori uicaning of the President's visit. The American flag will be in evidence rywhere, and President Harding, sutive of the Ameri- will be tendered the . respect and homage of every Alaskan, from Scott C. Bone, the territorial governor, down to the humblest redskin and liskimo. July 7. when the transport Hender- son bearing the members of hi Dixon entrance and waters, it will be met b fieet of small vessels, headed by government_yacht, on which w Gov. Scott Bone and his staff. Gov. RBone will extend the oflicial welcome 1o the northland, Scheduled to Lay Corner Stone. \ fow miles distant and the Pr dent will set foot on Alaskan for the first time, in the town Ketchi where he will be met by the ma nd a committee “vher rtended he will 1 e of a new Masonic Tem- The Prestdent will be taken also . on Annette Islan Indian colony. founded by ather Duncan, still ex- natives plan to regale him Harding with a cantata and him a unique entertainment. colorful land of totem poles, towering mountains, glaciers, moun- tain lake! territory so vast that within it without trouble we 3 New England states, isyIva zen’ or more something of intercst hus been pla ned for every day of the President's was the American 10 use punit never lot it tainly to Mr With ide and indic a colorful the be soll where the ous The and the Junean Program Outlined. Juneau, the territori apital, hopea to have the President with her for A day r more. If present plans go through every citizenship element in the territory will be represented at the public reception to bs tendered the President here. Souvenirs of gold and f{vory. wrought by rative 1 be presented to the President Mrs. Harding. tirizzled old ploneers, miners who have mushed their way to inland claims over hundreds of miles of ice and snow, will be on hand to see what the ‘blg boss of the U. S. A. 1oaks like. One of the mostnteresting experl- ences in prospect for the President is when the Gulf of Alaska is crossed by the Henderson to the town of Seward. on Re®urrection bay, where a special train will be waiting to con- ve. the visitors over the Kenal mountains te Anchorage and thence, countinuing by rail, to Fairbanks, the northern terminus of the government rafiroad. The trip will cover 467 miles, and when the end is reached the I’resident ca safely say he has reached the “top of the world.” Plcturcaque Aspects Assured. There will be picturesque aspects to the entire journey. The President will have a view of Mount McKinley. the highest peak on_the American continent, as well as Mount St. Elias and s, and the Fairweather range and the | &lorious scenery of the inside passage. Only one_distressing feature the offing, and Laddle Boy. the esident's dog, would be distressed he knew it." 'Most every one In these parts who owns one or more blooded huskies is preparing to pre- sent one to either the President or Mrs. Harding. 1f they accept the gift and take an Alaskan “huskie back to the White House with them— zood-bye, Laddie Boy! (Copyright, 1623.) 3 KILLED BY MATE, RUN AMUCK AT SEA Then Kills Self When Brave Coeur Reaches Port in Portugal. Slayer B the Associated Press, GALVESTON, Tex.. June 27.—Shoot- Ing to death three men and wounding a fourth in the space of two minutes !s the record of S. Thettos, second oMcor of the Shipping Board steamer Brave Coeur. Unpublished details of tlie tragedy, which ended in the sui- cide of Thettos, were received here today by letter from H. Grotemat, chicf engineer of the ship. Thettos was on watch at the time of the shooting, according to the let- ter. on June 6, secured a gun, went to the room of Capt. J. N. Nellson and shot him and Radio Operator A. Glaiser, who was talking to the captain. thon went to the room of Super-cargo John L. Perry, who w asleep, and killed him. The second Otto Hausler. a seaman, him several times. Thettos retired to his room, . barricading himself thereln, amd efforts to dislodge him were futile. Only two minutes were consumed jn the shooting. The Brave Coeur was headed for Oporto, Portugal, at full speed. On arrival at the port the American consul tried to persuade Thettos to surrender, wihout . result. Lime was dropped into Thettos, room through the ventilator, and as soon as It began to take effect he shot himgelf through the mouth, linger- ing in the hospital until the after- noon of June 9. No motives for Thettos action was known, the letter states, as the men shot, with the exception of the cap- tafn, were most intimate with him. The Brave Coeur, with the bodies of the cantain, supercargo and wire- ‘e operator, is due to reach Gal- veston about July 1. —_— INCREASE FOR RAIL MEN. SCRANTON, Pa., June 27.—Six hun- dred_employes of the Scranton Railway Company were granted an Increase in ‘wages ranging from 3 cents an hour to a flat 7 per cent {ncrease in an award handed down by the arbitration board today. % “Conductors and motormen receiyed an increase of from 3 to 5 ocents an hour, while dispatchers and trackmen were included in the other advance. The new. scals . is retroactive te April 1. wounding L4 of | looms | He left the bridge about 2 pm. | He | officer then fired at| Constant Watch on in Salt L The full text of the President’s ad- dress at Salt Lake City last night on | taxation and expenditure follows: My Fellow Countrymen: There is a suggestion of persomal tribute in choosing my toplc for an address-in |Salt Lake City. I have so long asso- clated Senator Smoot with great prob- lems of taxation, and have witnessed so much of his able and faithtul en- deavor to enforce economy and there- by lft the burdens of taxation, that I find myselt involuntarily thinking, when I come to your state, of the menace of mounting taxes and grow- ing public indebtedness. The re- moval of this menace i8 not alone a federal problem, for we are recording gratifying progress so far as the na- tion is concerned, but the larger Mmenace today is to be faced by mu- nicipality, county and state. The federal government is diligently seek- ing to prove itself a helpful example, but the improved order must come in the units of government into which federal government mnever intrudes. There is no particular reason why I should speak of it, except that we are all concerned about general public welfare, and I have thought that pos- sibly a recital of federal accomplish- ment would serve to encourage in a state and local work which must be done. 10 ihort tme before I became Pres- tdent a trusted but cynical old friend jsaid to me one day that he under- {xtood 1 intended to make a specialty of economy in administration. I ad- 1 my aspirations in that direc- , and he replied: ! ell, that's the right idea, but don’t tell anybody about it. You may Ilhlnk it will be appreciated, but it { will not. ery time you lop some- body off the government pay roll or keep him out of a profitable piece of government business you make him and all his friends and assoclates your enemlie: d, on the other side, not a soul in the country will ever thank you for,it. Evervbody grum- bles about takes, and nobody ever demonstrates any appreciation of the man that tries to save them from taxes.” { Warned Against Speech. A short time before we left Wash- ington on the present trip another triend sald to me: “The administra- tion has saved the country a good deal by reducing its expenses and cutting down the tax burden. But take my advice, and don't talk to any of your audiences about ft. Peo- ple always grumble about taxes, but they don't want to hear anybody talk {to them on that subject.” { To which I replied that I believed, In the present state of affairs, all such rules were suspended, and any public man who had anything cheerful to say on the subject of taxes and gov- ernment expenses, would find plenty jof audlences altogether willing to listen to him. I belleve the American {people are so profoundly interested {in the subject of taxation and gov- {ernment costs nowadays, that an au- dience like this will even be willing to let me talk to them a few minutes on the subject. One of the financlal incidents to our participation in the war was to loan a vast sum of money to our {allies. I wonder how many of you {ever stop to think that the $10,000. 000,000 which we advanced to our ai- {1ies, after our entrance into the war. was just about the same as the total cost of the clvil war to North and South together. four years and strained every nerve and resource of the nation. Yet its actual cost to the governments of both sides was considerably less than the amount we advanced to the allled governments during the world war. Spent More Ourselves. And that was only a mild begin- ning of our financial transactions in war. For every dollar we loaned to {our allies, we spent about three more on our own account. In a little more than three years, between the day war was declared and peace was |signed, we spent twice as much imoney out of the public treasury as ! had been spent by the national gov- ernment in all of its previous history. {1 am not going to talk to you today about whether the money was ail wisely spent. Whether it was or not, the results were worth all they cost, {and a good deal more. What I pro- | pose to present to you now is some , consideration of the fact that no mat- ter how willing we were to make the {sacrifice, no matter how cheerfully !we incurred the obligations, we had |to face at the end the big and very | practical reality that these obligations ! must be pald. You have inferred from what I sald {a moment ago that we spent roundly {$40.000.000,000 on the world war. {How many of us ever stopped to {think that that was rather more than !the total wealth of the nation at the Itime of the civil war. We paid out {of our current taxes, while the war | was going on, more than 25 per cent |of its cost; that is, as much as the | entire national weaith so late as the {year 1820. At the beginning of { August, 1919, the public debt reached {the highest point in its history, $27,- 1500,000,000. ' That was just about ten | times the amount of the national debt {at the close of the civil war. { Too Clowe to See Effect. We are still too close to the events {of the great war to be able to realize the enormous burdens placed on our | country. Quite aside from the large operations of public finance which it necessitated, private finance has been called upon from the very beginning in 1914 to make special arrangements for financing the huge foreign trade that resulted from Europe's extraordi- nary demands. Long before we were in the war our financial machinery had been compelled to shoulder the financing of an enormously exag. gerated export trade to the warring powers. For a time Burope with- drew gold from us in great quantities, but presently it returned in yet great- er, bringing to us and to the Eu- | i of maintaining the exchanges and supporting the gold standard. Costs of evervthing rose to an artificially high basis, and in every direction ex- penditure was stimulated. Altogether, the war was not only the greatest horror the world has ever known, but the greatest orgy o spending. This was inevitable, but that fact does not make the results any easier to deal with. The cost of government, of business, of every do- mestic establishment went up enor- mously. Every business man. and every ~ hous knows how it affected his 2 éoncern. I want to lu‘[ell% of the ways in which it affected the whole business of gov- government of the states, the nation, the expenses of every revenue-ralsing and spending division throughout the natlon. Reocently I have been furnished with some specific figures on this subject of the cost of government by the bureau of the census. I am not proposing -to Impose upon your pa- tience with an elaborate presentation of figures, but I want to suggest a few that will point my observations about the enormously increased cost of government everywhere. Take the cost of state governments. [ am in- formed that the revenues of the states in 1913 gregated $368,000,000, and that in 1921 they had inoreased to $969,000,000; that is, they had fa- creased 161 per cent, and ovwr{ dollar of that increase had to come in some way or othar from the publis, Zise The clvil war lasted | ropean countries the difficult problem ; THE EVENING AASKAISSTIRRED | Harding Warns States and Text of President’s Address Stressing Need of Economy Officials to Insure Wise Use of Public Funds Urged ake City. 1expenditures of the states in 1913 aggregated $383,000.000. and in 1921 they were $1,006,000.000; an increase of 163 per cent. The indebtedness of the states in 1913 amounted to $423,000,000, and in 1921 to $1.012,- 000,000; an ‘Increase of 139 per cent. City Government Higher. Turn now to the cost of city gov- ernment. The census bureau has complled data on the governments of 227 of the large cities. It is shown that these “cities in 1913 collected $890,000,000 in all revenues, and in 1921 they collected $1,567,000,000; that is, they were compelled to take 76 per cent more in taxes in 1921 than they had taken in 1913. The same group of clties expended in 1913 $1,010,000,000, and in 1921, $1 000,000—an Increase of 71 per cent. The total debt of this group of cities in 1913 was $2,901,000,000, which by 1921 had n’ to $4,334,000,000—an Increase of 49 per cent County administration appears, from the rather limited Information which at this time the census authori- tles have been able to produce, to have shown a much larger propor- tionate increase in cost and tax col- lections than did the government of cities. It is stated that for 381 countles, distributed among 38 states, and regarded as fairly typical, the increase in receipts from principal sources of revenue increased 127 per cent from 1913 to 1922; that is, for every hundred dollars of revenue col- lected in 1913, $227 was collected In 19 And that is not all of it. The total indebtedness of these same 381 countles increased 195 per cent in the same period; that is, for every hun- $295 of indebtedness in 1922 tics were not available dealing with cities and towns of less than 30,000 population; nor _with townships, sohool ‘districts, drainage districts, irrigation districts, road districts and other subdivisions which exercised the power to raise revenues and incur debts. It {3 well known, however, that substantially similar increases have affected all these taxing sub- divisions. States’ Cost Is Higher. The figures of both the Treasury and the census bureau, in short, make it perfectly plain that whereas the cost of the federal government is being steadily reduced. the cost of stato and local governments is be- ing just as steadily increased vear by year. In nearly all of the states the cost of state and local govern- ment_increased from 1913 to 1822, The Treasury made up statistics on this point for one group of ten states Arizona, Connecticut, Michigan, Minnesota, New Hampshire, Ohio, Oregon, South Dakota. Washington, and Wisconsin. For this representa- tive group it is shown that while federal taxes paid by these ten states declined from in 1920 to $650,000,000 in 1922, state and local taxes rose from 000.000 to $965,000,000 in the same period. In another tabulation, cover- ing twenty-elght states. which was the entire number for which the sta- tistics were avallable, it was shown that from 1919 to 1921 there w increases in local taxes in twenty- three states and reductions in only five. In spite of the enormous bur- | den’ of paying for the war and pay- Iing interest on the war debt, state and local taxes in 1922 represented 60 per cent of all taxes paid. their the same matter. We hear much about the grievous burden of the in- come tax, and every one of us who pays It is able fully to sympathize with every one else who pays it. But it is fair to consider what our rme taxes would be If we lived in some of the other debt-burdened countries of the world. A married citizen of the United States, with two children and an income of $5,000, paid $68 tax on that income iIn 1922. If he had been a citizen of Canada he would have pald $156. If the German tax rate had been applied to his income, it would have cost him $292. If he |had been a Frenchman the French [ PRESIDENT TOURS ZION PARK ON WAY TO SPEAK IN IDAH (Continued from First Page.) whence the Copper river and North- | western railway is to be taken to Cordovia, where the Henderson will I be in waiting. On tke return from Cordovia stopg are to be made at Sitka, on the 21st, and, if time per- mits, at Anette Island on and Metlakhatla on the 23d. ECONOMY PLEA SCORES. Harding Challenge to Cities May Have Political Reaction. BY DAVID LAWRENCE. SALT LAKE CITY, Utah, June —President Harding disclosed in his speeches here a well defined objec- tive to influence the state, county and municipal governments of the whole country to economize. In some respects the address which the President dellvered here was the most important of mis trip, for it cut at the heart of the political unrest of the nation—the burdens of taxa- tion. Mr. Harding has found out one thing about the last election which was 8o difficult at that time to anal- yze. He has discovered that local issues were so striking that they in- directly affected the chance of sen- ators and representatives in many sections of the country. Feeling dis- satisfied with the existing order, the electorate registered its protest in every concelvable way without ex- actly knowing where the responsi- bility for the high cost of everything began or ended. Has Studied Problem. Mr. Harding has set out to show that the states and cities are spend- ing far beyond their means and are ipiling up @ debt which is even big- ger in proportionate growth than the federal debt. The statistics which || were revealed by the President have for some time been under discussion in_Washington by the inner circle, and the President chose as a toplc for his speech subject of tax- ation, not because he could promise immediately any reduction in federal taxes, but because he thinks the states and citles are spending too much money and the federal govern- ment fs getting blamed for it by un- thinking voters. ‘The states have increased their debts to & total of more than & billion dol- lars, while the debts of 237 cities have| flnn. up to nearly four and a half bil- on. The figures in both instances are for 1921, and the President says frankly he hasn’t the data to what has hap- pened since, but he doesn’t think the states and cities are cutting down their debts by very much, and he points proudly to the record of the federal government, which, since the war, has steadily reduced the public debt so that this month it is about twenty-two and alf billions, or a out of about five bilifons. % On the matter of taxes paid, how- dred dollars of debt In 1913 they had | Statis- | over a billion dollars! Let me present another aspect of | rate would have required him to pay $96, and If he had been a British citi- {men, -instead of glving up the 368 which he pald to Uncle Sam, he would have drawn his check for $320.76. The me man, with an income of $10,000, would have paid $456 income ax in the United States and $1,128.32 in England. Reduction Planned. The great burden of the war wi of course, impo: on the nation government, The Department of the Treasury states that in 1917 the fed- eral government's revenues were $1,- 044,000,000; in 1918 they were $3,925,- 000,000; in 1919 they were $4,103,- 000,000; in 1920 they were $5,737,000,- 000; and in 1921 they were $4,902,- 000,000. For 1922 the total dropped to $3,565,000,000, and for 1923 it is esti- mated at $3,753,000,000. Assuming continuation of the present basis of federal taxation, the récelpts for 1924 are calculated $3.638,000,000, and for 1926 at $3,486.000,000. Not all of this revenue is raised by direct taxation. The Treasury estimates indicate that in 1923 only $2,925,000,000 and in 1924, $2,850,000,000 will be produced by direct taxation; the remainder will come from various miscellaneous receipts of the govern- ment. You will, T am sure, be inter- ested in the Treasury's statement that whereas In 1914 the per capita cost to all the people of the federal government was $6.97, that in 1918 it reached $36.64 and in 1919, $37.91. It might reasonably have been pre- sumed that with the war now long past taxes would have begun to fall off, but the statistics show the con- trary. Instead of a reduction, taxes for the fiscal vear 1920 rose to $53.78 per capita, which was the peak of the war burden. Even for 1921 they only fell to $45.22. But in 1923 they will be $26.29, or considerably less than half as much as in 1920. Fig- ures, especially the figures which represent such’ an authority as the Treasury Department, are conclusive arguments. These figures show that for two years after the war ended federal taxes continued much higher than at the height of the struggle. They show that in the first two years of peace the cost of government was still continuing above the 1918 level, but that since the high point of 1920 they have been reduced more than one-half. It is a record of business administration to which the party now in control of the administration feels justified in referring with with | no small measure of satisfaction. Debt In Reduced. 1 have observed that the cost of the war to our government was around $40,000.000,000. After paying a gen- erous share, about 25 per cent, from current revenues collected while the war was in progresd, we still had to borrow enormously. At its highest point, on August 31, 1919, the national debt was $26,696,000,000. I know you will be interested to be told that from that day, August 31, 1919, to June 30, 1923, we have reduced it to $22,400,000,000—a reduction of consid- erably more than a billion dollars a year. Moreover, we are now work- ing under a program which involves extinguishing a half billion of the debt each year. No other country in the world has been able to make such a record In addition to all this, we have within the past vear settled the British war debt to our government. arranged for its funding and its | gradual extinction over a long period of years. In recognition of the not- able service of Secretary Mellon, his associates at the Treasury and the members of the debt funding commis- sion and the American ambassador to Great Britain, I wish to say that this { settlement of the British debt has been acclaimed all over the world as one of the most notable and success- ful filscal accomplishments ever re- corded. Not only does it insure that the regular quarterly payments which { the British government will make to {our Treasury will correspondingly re- lieve the burden upon American tax- payers, but the more important fact, in a time of widespread uncertainty and misgiving throughout the world 1of business everywhere, that these two great governments could get to- gether and arrange such a settlement has been one of the 'most reassuring | events since the armistice. Renewed Confidence. There had been too much talk of | possible cancellations or repudiations jof the war debt. Such a program would have wrecked the entire struc- ‘hue of business faith and of confl- dence in the obligations of govern- ments throughout the world. There | was need, pressing and urgent need, {for such’ a sign of confidence, as- | surance, and faith in the future as this settlement furnished. When the British and American governments !united in this pledge that their obli- gations would be met to the last shill- ing and the last dollar, there was renewed financial confidence in the ever, the President did have later fig- ures, and he emphasized the fact that in 1922 the state and local taxes con- | stituted 60 per cent of the natfon’s entire tax burden. | Mr. Harding impressed his audlence | with the comparison he made of taxes | paid by American citizens and those | of other countries. He showed that | while the American with a $5.000 in- | | come pays his income tax of $68, the | German “of similar salary pays '$292 :nd the Frenchman $98 and the Briton 320. course, Some of the critics will say, of that other expenses—such as | the cost of living—are cheaper in Eu- the 22d | rope and that the case of the man wtih | |& $5,000 income doesn't touch the real difficulties of America’s tax problem as compared with Europe's, where, it is | contended, the burden is more evenly distributed, so that business is not | strangled and retarded by high taxes. | Still, Mr. Harding was striving to him that his tax burden is not so | heavy after all and that the states and cities are exacting more from him than is the federal government. From a political angle the Presi- dent's tactics were well chosen, but from the viewpoint of the economist there always will be much con troversy over the exact part that the tax burden plays in Increasing the cost of the necessities of life. The Buropean countries have not tried to make the present generation pay too heavily, but have recognized the fact that taxation can restrict a nations growth at the same time that its credit reputation may be enhanced by heavy.taxation. ‘Wants Thrift Practiced. Mr. Harding called upon the citi- zenry of the nation to practice thrift and insisted that state, county and oity governments do ltkewis The federal government had some control indirectly during the war on state and local expenditure. Mr. Harding. In his Denver speech, re- called the precedent set by President Roosevelt in calling the governors of the states together to get co- operation between the federal gov- FIRST MORTGAGES WANTED ‘We Are Btarting the Constructiom of 200 HOUSES Buburban Bections ang Need irst Trusts at 6%. LIBERAL BONUSES PAID Second Trusts on All Homes Have Been Secured. In Nea Sure and Safe M q in 0} i NATIONAL HOMES AND FINANCE COE!_?.I'!A'I'IOH (McCture ) 501-508 Woodward Bldg. ! Phome M. 970 —— | reach the average man and convince | world. I undertake to say that no event since - the conclusion of hos- tilities has contributed so much to putting the’world back on its way to stabilisation, to confidence in its governments, and to the establighed conviction that our soclal institutions are yet secure. No consideration of public finances can omit the fact that the single item of interest on the public debt ex- { ceeds $1,000,000,000 annually. For the flscal vear 1933, this item will be $1,100,000,000. Beyond this, we will reduce the public debt this year by !$330,000,000, and next year by ai | proximately $500,000,000. That fs, over 35 per cent of the national rev- enue will this year go to paying in- terest or extinguishing the principal of the public debt. In Best Showing. 1 have not been able to gather con- clusive statistics as to the accom- plishments of states, cities and coun- tles, to compare with this showing of the federal government. But with some general knowledge of the fiscal positions of states and cities {n gen- eral, I feel quite safe in proffering my congratulations to any state, any city, any foreign country, which has made a better showing in the matter of reducing its public debt within the period” since the war. I most earnestly regret th al have not been able to make a similar showing. On this latter point I wish to say a word further. Taxation decidedly is a local as well as a national question. Prior to the war federal taxation was an unimportant item; so small that in 1917 state and local taxes, in & group of ten representative states, in all parts of the country, constituted 73 _per cent of the entire tax burden. The federal tax was indirect and unfelt. Then came the enormous cost of the war, which the federal gov- ernment had to bear, and in 1918 state and local taxes constituted only 42 per cent of the entire tax burden. In 1919 they represented 44 per cent of the whole: in 1920, 41 per cent. But in 1922, the last year for which figures are available, state and local taxes were again in ex and rep- resented 60 per cent of the entire tax burden. The states represented dn this calculation are Arisona, Connecticut, Michigan, Minnesota, New Hampshire, Ohlo, Oregon, South Dakota, Washing- ton and Wisconsin. Spending Is Habit. The world, its governments, its quasi-public corporations, its people, acquired the spending habit during the war to an extent not merely un- precedented, but absolutely alarming. There is but one way for the com- munity finally to get back on its feet, and that is to go seriously about pay- ing its debts and reducing its ex- penses. That Is what the world must face. The greatest and richest gov- ernment, must face it, and so must the humiblest citizen. No habit fs 80 easy to form, none so hard to treak, as that of reckless spending. And on the other side, none is more certain to contribute security and happiness than the habit of thrift, of savings, of careful management in all business concerns, of balanced budgets and living within incomes. 1f I could urge upon the American people a single rule applicable to every one of them as Individuals, and to every political or corporate unit among them, it would be to learn to spend somewhat less than your in- come all the time. If you have debts, reduce them as rapidly as you can: if you are one of the fortunate few who have no debts, make it a rule to save something every vear. Keep your eye everlastingly on those who administer your governmental for you; your town, your county, state, vour national government. Make them understand your are ap- plying the rule of thrift and savings in your personal affairs, and require them to apply it in their management of your publc affairs. If they fail, find other public servants who will succeed. If they succeed, give them such encouragement and inspiration as will be represented by a full meas- ure of hearty appreciation for their efforts. This brings me to a brief reference to what has proven so helpful to the federal government in effecting the approach to the expenditures of nor- mal times. For the first time In our history we have the national budget, under which there is an ef- fective scrutiny of _estimates for public expenditure. More, we have co-ordinated government activities ’in making the expenditures which Con- gress authorizes. Praises Budget System. It seems now unbelievable that we should have been willing to go for a century and a third without this helpful agency of business adminls- tration. But we did, and only now have we come to an appraisal of the cost of this great neglect. It has been no easy task to estab- lernment and the states. In his | speeches thus far, Mr. Harding has |developed the doctrine of closer working arrangements between Washington and the several states of the union. Already a conference Las been called to discuss prohibition | enforcement by the state and federal | governments. Maybe there will be another on taxes. ‘The President has presented indeed | a second problem with “‘concurrent” as- | pect, and that's taxation and state and city borrowing. The President failed to mention one reason why the states and cities have been spending so much— the ease with which they can borrow money from federal taxation. At last several states have been able to raise the money | sorely needed for local improvements to | keep pace with the growth of popula- | tion and to catch up with the many | projects left undone during the war |@nd tmmediately thereafter. Mr. Harding has opened a subject | which the local politicians will not per- | mit to go unanswered. Local candidates {have always found high taxes a %ood | | issue, but when the President criticizes the states and citles and counties in comparison with the federal government | he reveals a new avenue of approach to | the numerous political situations which !have in recent years been causing local | upheavals and influencing national elec- tions. (Copyright, 1923.) —_— Sheep will follow one another in single file, even into danger, because In olden days they ran along narrow sheep paths across the mountains, where there was only room for one at a time to pass along. Special Attention to Nervous People Those who are about having thelr teoth treated will receive extra care as thelr securities are exempt STAR, WASHINGTON, D. O, WEDNESDAY, JUNE 27, 1923~ lish the budget and make sure of its| acceptance. Out of the long-time prac- tices the varied and many govern- ment departments felt themselves in- dependent institutions instead of fac- tors in the great machinery of gov- ernment administration. They often got all they could from Congre made it a point to spend all t Under the budget plan we were ble to reverse the policy and awaken a spirit of economy and efficiency in the public service. We not only in sisted that requests for appropri tions should stand the minutest i quiry, but after reduced appropri tions’ were granted we Insisted on expending less than the appropria- tions. There was no proposal to di- minish government actlvities required by law or demanded by public need, but there was first the commitment to efficiency and then commendabls strife for economy. Ended 0ld Practice. ‘We effaced the inexcusable and very. costly impression that government departments must expend all their appropriations, that no_available cash should return to the Treasury. And we sought to inspire as well as exact in_the practices of economy. Ono illustration will not be amiss. On June 8, 1921, before the budget was in operation, word came to me that the business head of one of our institutions, far from Washington, was puzzling how to expend $42,000 which he had In excess of actual needs. . Ordinarily such a matter would never reach the chief execu- tive. But this one did, and I wired a warning, and followed it with a lotter reciting the need of retrench- ment everywhere, and expressed the hope that every government official with spending authority would aid in reducing the government outlay. The appeal was effective, and this one government &gent not only saved most of his available $42,000 for that fiacal year, but in 1922 ho saved $51,- 000 more. He proved what could be done, and we are seeking to do it everywhere. Do not imagine it has all been easy. It is very popular to expend, and there are ruffied feelings in every case of denfal. But there are gratlfying results in firm resolution and the in- sistent application of business methods. Cites Instance. The budget director is the agent of the President; and he speaks on the authority of the government's chief exccutive. One day last winter the director came to me in great| anxiety, telling me that a department chief would not sanction an $8.000,000 cut in his estimates. At that time we were seeking to prevent a threatened excess of expenditures over receipts amounting to $800,000,000 for the next fiscal year. 1 sent for the department head, and he was still Insistent in his opposi- tion to the reduced estimate. I called for a conference of the department experts and the budget experts, and told them that if they could not agree. 1 would decide. They conferred, and | instead of returning to me for de- cision, the estimate was cut more than $12,000,000. The point is that we have introduced business methods in government, and instead of op-| erating blindly and to suit individual departments which had never vis- ualized the government as a whole, and felt no concern about the ral ing of funds, we are scrutinizing, justifying, co-ordinating, and not only halting mounting cost, but making long strides in reducing the cost of government activities. Perhaps the budget system would not accomplish so much for taxing and spending divisions smaller than the state, but a resolute commitment to strike at all extravagance and ex- pend public funds as one would for himself in his personal and business affairs will accomplish wonders, Often Unmindfulness. It is largely unmindfulness that piles up the burden. Able and hon- orable men often press for a federal expenditure to be made in their own community or in other ways helpful to their own interests which they would strongly oppose If they were not directly concerned. This I8 true of federal approprlation as well as municipal, county and state expendi- | ture. and T know of no remedy unless | public officials are brought to un-| derstand the menace in excessive tax | burdens and indebtedness, beyond ! extinguishment except in drastic ac- tion, and resolve to employ practicable business methods In government ev- erywhere, and resist the assault of the spenders. Tt is too early to know whether | there is a republic of ancient times ) with which appropriately to parallel ! our own. We know of their rise| and fall, and we may learn the les- | sons in’ their failures. A simpl diving. thrifty people, with simple, | honest and just government, never | falled to grow in influence and power. The coming of extravagance and | profligacy in private life and waste- | fulness and excesses in public life | ever proclaimed the failures which ! history has recorded. i I would not urge the stingy. skimpy, hoarding life of individual or an inadequate program of govern- ment. The latter must always rise to dellberate public demand. But private life and public practices are inseparably associated. I would have our government ade- | quate in every locality and in every activity, and public sentiment n demand’ it and secure it, and require no more, if we may have the simple and thrifty life which. makes the healthful nation. These reflections, my countrymen, are not conceived in doubt or pes- simism. We have 8o nobly begun, we are s0 boundless in resources, we have wrought so notably In our short national existence, that I wish these United States to go on securely. 1 would like developing dangers noted and appraised and intelligently and patriotically guarded against. A na- tion of inconsiderate spenders s never socure. We wish our United States everlastingly secure. ‘War brought us the lesson that we had not been so American in spirit as we had honestly pretended. Some of our adopted citizenship wore the habiliments of America, but were not consecrated In soul. Some to whom we have given all the advantages of American citizenship would destroy the very institutions under which they have accepted our hospitality. Hence our commitment to the neces- sary Americanization which we too long neglected. The Amerfcan Le- glon, baptized anew in the supreme test on foreign battle fields, is play- ing its splendid part. Those who bor war’s burdens at home have joined, and all America must fully partici- pate. It Is not enough to enlist the sincere allegiance of those who come to accept our citizenship; we make sure for ourselves, for all of us, that we cling to the fundamentals, to the practices which enabled us to build 80 successfully, and avoid the errors which tend to impair our vigor and becloud our future. Cities of Menace in Rising Taxes HOME BUREAU HEAD i MAY BE NOTED WOMAN Choice Made by Secretary Wallace, But Acceptance Not Yet Received. A woman of recognized abllity and natfonal reputation has been selected to become chief of the Agricultural Department's new bureau of home economics, which comes into exist- ence July 1. She has not yet accepted, however, and her name {8 withheld. Secretary Wallace has been casting about for some time to find a woman suitable to direct the activities of the new bureau, which will investigate the relative utility and economy of agircultural products for food, cloth- ing and other uses in the home and formulate plans and methods for their more effective utilization. The place will pav a salary of about $5000 « must | vear. | The woman chosen is connected | with a large educational institution |and refusal of the institution to grant |her a year's leave of absence is said [to have caused her to consider offer- ng her resignation in order to accept Secretary Wallace's invitation to head the new bur | TALKS ON CHARACTER. | “Character analysis should be one lof the more tmportant assets of & | physician in approaching a patient,” | declared Dr. H. D. Kress of the Ta koma Park Sanitarium, in addressing the Practical Psychology Club, at the Thomson School last night. 4 seventh son in born Eéntina the president of the Ar lic becomes his godf. Can you use these Chemicals? All to be sold by Sealed Bid, closing at Edgewood Arsenal, Md., 10 a.m. eastern standard time, July 9th, 1923. Act now! Manufacturing chemists, ested in this sale of chemicals. chemicals for which there is you. If you decide to participate in this sale, prompt action is neces- sary, as unfortunately there is lit- Send your request for circular proposal and complete terms of sale today to the Commanding Officer, Chem gewood tle time for inspection, ete. ical Warfare Service, Arsenal, Edgewood, Md. an everyday need at prices commen- surate with their actual worth to drug- gists and others should be inter- It offers an opportunity to purchase Formaldehyde (4,000 gnals.) Sodium Nitrate (11,000 1bs.) Ether (4,000 1bs.) Monochlor- benzene (660 gals.) Chloroform (300 1bs.) Xylol (19,000 1bs.) Gum Camphor (19,000 1bs.) ‘Toluol (2,200 gals.) The Government reserves the right to reject any or all bids. Cool Apartments Out where the summer heat is tempered by the breezes of Cleveland Park 3430 Connecticut Ave. Apartments of three and four rooms and bath in a splendid neighborhood, with reasonable rents. . i MICKEEVER = GOS, e o ivice RS ] 1415 Eye St. NW. x X x X X x i X X X X X X X X X X X o X o o X X X X o o o X X X X E talked to. 1:00 A.M. to The each week g gy FETTT T T T3S T TTTT T TR T T ST T2 8 e ‘ Exploring With MacMillan Through Radio and The Star all Washington can join in this errand of Dr. MacMillan’s into the vastness of the frozen north. The Star, in conjunction with other important news- papers of the country, is sending him on this important journey —equipped with radio outfit—with which he can talk and be Truly a wonderful prospect—one, that as the cele- brated explorer nears his destination, will thrill with intense interest. Already messages are being wirelessed from the dauntless Bowdoin—cruising northward—and every fan is wel- come to “listen in.” Here’s the schedule: 10:00 P.M. to Midnight—WNP will QRX for press reports. Midnight—WNP will QRX for reports via NSS (17,000 meters). 9 A.M—~WNP will communicate with amateurs, 3:00 A.M. to 4:59 A.M.—WNP will work a special schedule, 5:00 A.M. to 7:00 AM.—WNP will communicate with amateurs. * WNP will QRX on about 750 meters for special work with limited commercial stations. which Dr. MacMillan will personally send bé published in Washington Exclusively in ¢ W g g 2 W 8 e e e e e ek e e ek e ke e ke e e sk ke ke sk e sk e e sk sk ke e e sk ke e s ke ke ke * 5 -~