Evening Star Newspaper, December 7, 1927, Page 38

E’u’dget Presented to Congress by President Provides Saving of REDUCTION OF IN PUBLIC DEBT SINCE 1920 President Points Out Saving of $320.- 000.000 Annual $8,084,794.716 Interest——Budget plan praised. reaping the rewards which follow that course. We can well take the experience of the past as our index to future operations. If we proceed along the orderly lines followed these last vears our continued success i assured. Flood Control Urgent. Adequate flood protection an “absolute and i nt necessity,” the President told Congress in explaining that careful study of many f: “points to tax reduction of $22 000 as the maximum, and tnat only possible on the assu tion that the estimate of expenditure for 1929 be not materially exceeded and that additional continual obligations be in-| curred only to the extent that abso- late necessi: from the i public need warrant: T subject of tax reduction, the President said is “Since 1920 there have heen three |l taxes for the purpose of relieving the people of some of their war burde; The act of November, 1921, lightened the tax load b; - duction of $663,000,000. The 1924 afforded additional relief of $5 000,000. The act of 1926 made a further reduction of $422,000,000. Tak in, these all together our tax de- mands have been lessened by $1,604,- 000,000. This in itself illustrates the value of orderly procedure. The peo- ple are permanently richer because of the diminished demands made by the Federal Government. And hand in hand with these material curtail- ments of the amounts taken from the people the public debt has been re- duced. From a peak of more than $26,500,000.000 the debt had been re- duced on June 30, 1927, by §8,084,794, 716. This lowering of the debt means an annual saving in interest of ap- proximately $320,000,000. While this tangible and extraordinary saving emnhasized the importance of debt re- duction as a preliminary to ultimate adequate tax reduction, we have at this time for consideration the ques- tion of further relief to those who pay Federal taxes. P “In planning for a revision® down- ward of tax rates the first question that presents itself is the amount of money that can safely be devoted to the purpose without curtailing neces- sary activities of the Government or threatening a deficit. The extraor- dinary surplus of June 30, 1927, was $635,809,000, and was made possible by receipts from non-recurring sources of $414,000,000, only $221,000,000 com- ing from current and _continuing sources. Of this surplus $612,000,000 was applied to the public debt, effect- 3!5‘ an annual interest saving of $24,- reductions in ‘The estimated surplug for this year—which ends with June 30, next —1is $454,000,000, of which $318,000,000 is from non-recurring sources and $136,000,000 from current and con- tinuing sources. This is an increase of $254,000,000 over the estimate carried in the 1928 budget, of which increase $158,000,000 is from miscellaneous re- ceipts which include $154,000,000 in receipts from railroads. The remain- ing $96,000,000 of the increase is found contained in this budget reach a total of 83 8, which is exclusive of {the postal service payable from pos- |tal receipts. A comparison between in this budget and those | vear 1928 should neces- ¢ include the supplemental esti- es for 1928, Many of these were sented to the Congress for consid- eration in the second deficiency bill, fiscal year 1927. That bill failed of en- |actment. There has necessarily been | change in these estimates.” e pre- sented to Cong table graphically showing by comparison the estimates of appropriations contained in this budget and the appropriations for 1928 i with estimates pertaining to that fiscal year, making a new total for A copy of this table is printed elsewhere in this paper. Document Is Complete. The budget submitted to Congress today is more complete than any of its predec It is the intent of the ting a budget system for the 3 Government that the annual budget include estimates for all needs of the Government for the full 12 months for which budget estimates are submitted, the President points out. “In our great and growing Gov- ernment changes are kaleidoscopi he said, “and new needs and impera- tive new demands arise overnight call- ing for congressional help. annual budget a complete pro for a full vear, appreciating the wis- dom of such a policy. While actual deficits are rare, supplementals, be- cause of the reasons cited, persist, and persist iarge in amount and many in number. “Estimates of this character, which have already been submitted to this Cony for inclusion in the urgent deficiency bill, total $204,000,000. Of this amount, $106, 000 is made necessary by new legisla tion. Of the balance of approximately $98,000,000 the sum of $43,000.000 is required for tax refunds, $7,000,000 for emergency flood relief, $8,000,000 for claims and judgments, while the re- mainder is needed for national de- fense or to meet demands of policies that have congressional approval. The non-enactment of the second deficiency bill during the session of Congress which closed March 4, 1927, necessarily adds to the total of these supplemental estimates which must now be present- ed to the Congress.” An important section of the Presi- dent’s budget message deals with re- funding taxes, and he says he be- lieves the time has come when es- timates of appropriations for such re- funding of taxes illegally collected should be reflected in the appropria- tion item requested in the budget. He explains that in prior years this item of expense, while reflected in budget estimates of expenditure, has not been fully reflected in the an- nual estimates for appropriations. The operation has been conducted on a calendar year basis, the President points out, by making the refundment of taxes an item for inclusion as a supplemental, rather than budget estimate. The present budget tains an estimate of $135,000,000 for in regular revenue returns. Surplus of $252,540,000. “The estimated surplus for 1929— the coming fiscal year—is $252,540,000, of which §75,000,000 is from non-recur- ring sources. This surplus is reached by means of a fairly sanguine esti- mate of receipts and a carefully re- stricted estimate of expenditure. The expenditure estimate for 1929 of $3.- 657,000,000 includes nothing for flood control with the exception of the fifth- year allowance of $10,000,000 .in the six-year program authorized by Con- gress. Other proposed major projects, not yet the subject of legislation, are not provided for in this estimate. It is reasonably certain that some of them will be enacted into law and will call for material advances from the Federal Treasury. This will doubtless have ‘thn consideration of the Con- gress. The President cxpresses his convic- tion that the people of this country are overwhelmingly in favor of keep- ing the budget balanced and just as overwhelmingly opposed to any meas- ures that would make any other re- sult even remotely possible and says that he is counting on the continued rrol‘perfly of the Nation in setting his ’hlllt on tax reduction and in_explain- ing udget. “Each of the three reductions in tax rates since November, 1921,” he says, “has been measured on the certainty of our ability to stand such reduc- tions. This is the only safe course. I. has brought forth a balanced ‘budget. In this we have found our financial stability. We have been oper- ating on the wise plan that reduction im rates of Federal taxes should be mnnent. ‘This is the only proper for tax reduction. In a business of the magnitude of that of the Fed- eral Government there must be a mar- ®in of safety. The fact that this mar- gin has grown to large proportions in the past fiscal years carries no assur- ance that that will continue. I am in favor of tax reduction. I am not in fayor of any such reduction as will Jeopardize our financial stability. The assurance that Federal expenditures will be kept within Federal receipt: has bulwarked public confidence, it| has contributed measurably to the prosperous condition of the country it has ministered to the justifiable pride of our people in their Govern- ment and in its orderly and sane proc- esses. To jeopardize our balanced budget, to do anything that in the most remote degree would threaten to interfere with the orderly processes of wise financing, to take steps in the ‘Interest of tax reduction that would necessitate either revolutionary cur- tailment of important Federal projects and activities or compel a later up- ‘ward revision of tax rates, or both, is ‘unthinkable.” Budget Safeguard Cited. The President calls attention that under the law made by Congress the President cannot countenance a pro- gram of expenditure or approve esti- mates for appropriations that threaten to interfere with the annual balancing of the national budget. He explained that: “Estimated receipts for the fiscal year ended June 30, 1927, as carried in the 1928 budget totaled $4,026,780,- 638 and estimated expenditure was $3,643,701,593. The year closed, how- ever, with actual receipts of $4,129,- 894,441.10 and actual expenditures of $3,493,584,519.40. We were fortunate in having a marked increase in re- ceipts, while a material reduction in estimated expenditure, resuiting large- Jy from the continiing policy of econ- omy, contributed to the creation of the largest surplus in history, $635,- $09.921.70. “In the budget for 1928, transmitted to the Congress December 6, 1926, it was estimated that our receipts for that year would be 077 and our expenditures 049.214. The surplus indicated wi 0,703,863 To- day our finances for 1928 present a wmore favorable outlook. It is now es- timated that our receipts for the vear the importance of a balanced iGovernment was $1,674. refundment of taxes for the full fiscal year 1929, in harmony with the plan to have the annual budget estimates reflect the conditions for the fiscal year to which they relate. Supplemental Estimate. The balance of the tutrent flscal year will be covered by a supple- mental estimate, the President sald, explaining that “In the development of this plan the estimates of appropriations in this budget carry approximately $80,000,000 more for permanent and indefinite appropriations than has ap- peared in preceding budgets. This is all in the interest of having the budget estimates reflect actual re- quirements. This is a step in the right direction. It narrows the mar- gin between our estimate of appro- priations and the estimate of expendi- ture. The latter estimate has always carried these items, but their reflec- tion elsewhere in the budget as esti- mates of appropriations is most de- girable. Taking the refundment of taxes item and these additional per- manent and indefinite funds together, we have an increase of $230,000,000 over what would have been required under the plan of estimates hereto- fore followed in preparing the an- nual budgets. This is not a real in- crease, as these items have always been included in the estimates of ex- penditure. Probably the most important inno- vation in the present budget is the estimate for gradual liquidation of the Government liability under the opera- tion of the retirement systems, cor- related with which is the question of salary increases for clvilian emploves under the classification act. The President finds that the Government “is liberal in the treatment of its em- ployes,” and that “the rate of pay by the Government s higher than in comparable places in private employ- ment.” In discussing these personal questions in his budget message, the President said: “The budget herewith contains for the first time estimates of appropria- tions for commencing liquidation of he liability of the Government to both the civil service and foreign service retirements. The Congress wisely au- thorized submission of estimates for this purpose. This conforms to the principle under which we have been operating to amortize our long-term commitments. For the civil service retirement fund the estimate is $19,- 950,000 and for the foreign service re- tirement fund $213,000. The Govern- ment board of actuaries estimates that an annual appropriation of the former amount for 71 years and of the latter amount for 60 years will meet fully the accrued and accruing liability of the Government to these two funds. Since these estimates are based on the present pay roll, any increase in the roll will be reflected in a reduction of the time in which the liability of the Government will be fully discharged. An increase of 1 per cent annually in the pay roll of those contributing to the cfvil service retirement fund would reduce the period of amortization from 71 to 42 years. Liberal to Employes. “We are necessarily concerned in the Federal pay roll. This concern in- volves both the interests of the tax- payers and those who are on the rolls. The effort has been to do equal jus- tice to both., The classification act of 1923, with the extension of comparable rates of compensation to those in the field service, has substantially met the situation. In 1923 the average salary of Federal employes at the seat of ‘When the classification act went into effect in 1924 it increased the average salary to $1,749. For the fiscal year 1927 the average salary had increased to $1,846. For 1928 the average salary will be about $1,886 and for 1929 will amount approximately to $1,897. Adequate provision has been made for those em- ploves who are injured in the line of duty and for those who are retired be- now in progress will reach $4,075,598, 091 and that our expenditures will be 1,314,285. This indicates a sur- '1:7|IAI of $454,283,806. “The N cause of permanent disability or age. The allowance for annual and sick leave, the reasonable hours of daily JTHY - EVENTNG STAR. WASHINGTON, D. C. WEDNESDAY, DECEMBER 7, 1977, ployment are other factors which favor the Government worker. Tak- ing all things into consideration, I feel that the Government is liberal in the treatment of its emrloyes. If this were not so, it is hardly possible that the civil service records would show that more than a quarter of a million persons sought Federal employment in 1927, when the number of vacancies wa® only 38,700. All our investiga- tiom® show that in places paying less $2,500 to $3,000, the rate of pay v the Government is higher than in comparable places in private employ.” The budget under the national de- tense program calls for a total of ap- proximately $645,000,000, which in- cludes an increase of $48,000,000 for a larger Navy. Under this program work would be carried forward on all proj- ects authorized by Congress, with the exception of 3 submarines and 12 de- stroyers authorized in 1916, for which ‘no funds are desired at this time,"” the President said. In explaining the Navy building progrom, the President continues: Funds for Air Program. “Navy craft under construction in will comprise two submarines and uisers, of which two will be pract completed in 192 Pensacola and Salt Lake City. Ample funds are provided in the estimate for the modernization of the battleships Oklahoma and Nevada, in accordance with the approved modernization pro- | cessary funds are provided |to carry out the third increment of the five-y program. It is ex- pected with the funds recommended, the Navy at the end of the coming fis- |cal year will have 696 planes of the 1,000 final total contemplated in the program approved by the Congress. Additional funds are also recommend- ed for the lighterthan-air ship, for which Congress has already appro- priated $200,000.” The budget estimates for the Army contemplate a Regular Army of 118, men with 12,000 officers, 30,000 trainees for the Citizens’ Military Training Camp, 15,725 trainees in the Organized Reserve, 125000 cadets in the Reserve Officers’ Training Corps and a National Guard strength of 188,000 men. The total availability asked for Army housing in 1929 is $7,115,000, in- cluding contract authorization. There is carried in the supplemental esti- mates for 1928, the sum of $6,166,000 for Army housing, that being the amount which failed of enactment in the second deficiency bill in the last Congress. This makes a total avail- able in the two estimates of $13.281,- 000, and completes the authorizations so far made by Congress for this pur- pose, the President points out. In ad- dition _thereto the amount recom- mended for repair and .maintenance of barracks, quarters, sewers, roads and water systems amounts to $10,- 440,000, an increase of $1,672,500 over available funds this current year. Included in these estimates alsois an increase of $2,000,000 over the 1928 appropriation for ammunition. Esti- mates for the Army Air Corps provide for the second year increment in the five-vear program looking toward 1. 800 airplanes at the end of the five years. Particular attention to the Air Sery- ice is pald by the President in his budget message, in which he points with pride to the Federal operation of the Postal Air Mail Service and calls attention to how the various depart- ments of Government are employing airplanes, emphasizing that under the budget program at the end of the next flscal year more than 10,000 miles of airways will be lighted. Wisdom of Policy Cited. “We have proceeded sufficiently far in our Air Service program to show the wisdom of the legislative policy 19 eight ¢ Budget Estimates appropriations contained in this bud; Legislative catablishment .....oeeeees Executive office ...... Independent establishment Alaska relief funds .. Alien property custodi: American Battle Monumen Arlington Memorial Bridge Board of Mediation . Board of Tax Appeals . Bureau_of Efficie e Civil jee Comi e, Comm Power Commission Radio Commission .. B General Accounting Office Housing _Corporation . sory Committee dings and Public Smithsonian _Institution . Tariff_Commis: Na Publ; on e Claims, judgmen Total. executive offi tabiishments Department of Agriculture Department of Comme: ce Department of the Interior t of Justice t of- L Navy tment Post Office Department, ble from Treasury State Department Treasury Department War Department. mclud District of Columbia . Total, Reduction fi Sinking fuffld . i Redemption of securities from Federal bank and Federal intermediate credi franchise tax receipts . Redemption of bon ‘ments of principa on obligations of foreign & Redemption of bonds, Teitures, gifts, etc. . ordinary ¥ principal of the public debt Ter v ‘account of Principal of the public debt . Interest on the public debt Total payable from the Treasury . Postal servic Total, including Post Office Depart and’ postal savings ... *Includes 4.430 in budget estimates’ prior 1o $Revised 1o date. $Heretofore incl postal reveni from e iies $107.000,000 192 enue refunds. Formane ded in estimates of 28 sup all our activities of ; ot c careful o with a view to curtail that character Wi ing them.” Federal Building Projects. The budget carries requests for ap m'n[l;‘r |l4\|§l totaling $13,000,000 for the Federal public buildings program on projects at limits of cost aggregat- ing $53, 000. This is in addition to appropriations amounting to §8,131.- 000 submitted for inclusion in the first deficiency appropriation bill, on which hearings have just closed before the House appropriations committee. This is with the view to expediting the construction program authorized b; the public buildings act of May 25, 19%. In his budget message the President says that these amounts, together with appropriations already available, “will provide ample funds for expenditure within the _\'om".ly limit of $25,000,000 fixed in the act. Reduction in the size of paper cur- rency will “serve the public conven- ience, will create substantial savings in expense of manufacture and will insure that existing manufacturing facilities will meet increased demand for many years to come,” President with regard to this important and de- veloping line of Federal activity,” the President said. “Under this policy the needs of the Federal Government are being met with orderly stimulation of private industry. The appropria- tions of the past as well as the esti- mates now submitted are all in furth- erance of this licy. Our procure- ment of aircraft and accessories is trom private industry. This is as it should be. We have gone further than this. Private indutsry is now operating by contract our entire Postai Air Malil Service. We now have 13 contract mail routes in operatien and seven others under contract with a view to their early operation. We can point with pride to the Federal operation of the Postal Air Mail Serv- ice. Such operation was necessary in the beginning. We can point with equal pride to the turning of that service over to private industry for operation under contract. That has resulted largely from the policy which this Nation has been pursuing in air navigation, That policy, probably more than any one other thing, made possible the handling of this business by private enterprise. “In the realm of navigation by air, I have mentioned elsewhere the pro- vision made in these estimates for carrying on the five-year programs for the Army and Navy. In our civil work the Coast Guard, the prohibition service and the forest service are also operating airplanes. The Department of Commerce is also using planes in its air navigation work, Provision for all of these is made in the esti- mates herewith submitted, which also carry funds for further development of our lighted airways. With regard to this latter Federal function, the end of the next fiscal year under the estimate herein submitted should see more than 10,000 miles of lighted air- ways.” Frowning upon any increase in Federal ald to State projects and de- claring for careful study to ecurtail uch Federal participation, President Coolidge explained the 'estimate of $1,108,000 in the budget for the promo- tion of the welfare and hygiene of maternity and infancy to close out six years of demonstration work by the Government. *I refer to this estimate for two reasons,” the Presi- dent said. “The first is, that the authorization for this appropriation expires with the fiscal vear 1929. The second is, that it marks the termination of Federal contribution to a project which is for . rious units of the Government for the State control and administration. The extension for two years of the pro- visions of the act for the promotion of the welfare and hygiene of maternity and infancy was approved with the understanding that its administration during these two added years would be with a view to the discontinuance of Federal aid thereafter. Bix years of experience under the able administra- ;tion that has characterized the Gov-; ernment's policy warrants this per- manent withdrawal of Federal aid, as- sured that the States are now or should be able to carry on this work without aid or Interference from the Federal Government. “This opens up the whole subject of State aid, which despite frequent warnings continues-strongly intrench- in Federal operations. While the amount of money taken annually from the Federal Treasury for subsidies to States is not inconsiderable, the dan- gers inherent in the policy are of far greater importance. 'To relieve the States of their just obligations by re- final result is hurtful rather than helpful to the State, and unfair to the payers of national taxes. To tempt the States by Federal subsidies to sacrifice their vested rights is not.a wholesome practice no matter how worthy the object to be attained. Fed- cral interference in State functions can | never be justified as a permanent con- tinuing policy even if, which is doubts ful, such interference is warranted by emergent conditions as a temporary expedient. As shown in the maternity and infancy act, when once the Gov- ernment engages in such an enterprise it is almost impossible to terminate its connection therewith. We should not only decidedly refuse to counte- service under favorable working con- mance additional Federal participation Testimates .of appropriations "ditions .and .the .permanency of em-.in State-aid projects, but should make A sort to the Federal Treasury in the! &) Coolidge tells Congress. He reminds them that during the past year an exhaustive study involving the de- signs of the paper currency issues of the United States has been com- pleted and definite conclusions have been reached. “New designs are being prepared which will eliminate the ex- isting confusion, and the size will be educed about one-third,” he said. “For many years there has been a constantly growing demand for in- creased supplies of paper currency. Many factors have entered into the situation, among them being the growth of the country in population and wealth, and the more extended use of paper instead of coin. Durirg the past decade the paper currency outstanding has increased from 536, 600,000 pieces, in amount exceeding $4,212,000,000, to 865,300,000 pieces, in amount approximating $5,715,000,000. In order to meet the currency require- ments, the Bureau of Engraving and Printing delivered 514,685,000 pieces during 1917 and 992,339,000 pieces during 1927. Constantly increasing appropriations have been required and it was apparent should the increase continue it would be necessary to pro- vide additional production facilities. Both of these considerations have been effectively met by the action taken.” The President's budget message emphasizes that a saving of about $75,000,000 in annual interest has been made by refunding and payments on the national debt for the calendar year 1927, “The retirement and refunding of our second Liberty loan,” he said, “has aided materially in lessening our interest charges. On February 28, 1927, there were outstanding $3,104,- 520,050 second Liberty loan bonds, practically all of which bore interest at the rate of 41 per cent. From February 28, 1927, to November 12, 1927, bonds to the value of $575,000, 000 were retired, with funds available for debt reduction. The remainder, approximately $2,500,000,000, are being refunded into securities bearing inter- est at the rate of 31, per cent and under. The savings in annual inter- est by the debt reduction effected by retirement of these bonds amounts to over $24,000,000 and the annual sav- ing effected by the refunding opera- tions will amount to more than $21,- 000,000, making a total annual saving in interest of more than $45,000,000. The summary of recommended ap- propriations under the heading of va- fiscal year 1929 is as follows: Senate. D] A for 1928 . .$2,827,407.70 e ‘m 13!5}?”' T 1348378 Budseh estimaten for 1020, 385655070 Reduction .. 14.670.75 This involves a reduction of’$6,237 for personnel and increases of $50 for postage and $5,000 for the Senate kitchens and restaurants. _Supple- mental estimates are submitted for 1928 of $10,000 for pay to widow of Senator McKinley and $3.483.75 for extraservices which do not recur in 929, Architect of Capitol. Dpropriated for 1928. Supplemental _ estimates mitted for 1928 . Total for 1928..... Budget estimates for 1% Reduction ... 032.258.00 This involves increases of $2,000 for maintenance of the Senate Office Building, $10,774 for the Capitol power plant, $21,700 for maintenance and re- pair of the Library Building, §5,000 for furniture for Library Building, a new item of $300,000 for buildings for the Botanic Garden on a new site, re- ductions of $17,200 for maintenance and repairs of Capitol Buildings, $6,532 for maintenance of the House Office Building, $1,000 for trees, shrubs and plantg. The 1928 appropriations pro- vided $20,000 for extension of the Cap- itol Grounds, $210,000 for installation 1 s and as interest payments vernments . payable from postal revenues. . Are Compared With Appropriations for 1928 Tn the following table a comparison is made with the estimates of get and the appropriations for 1928 coupled with the estimates pertaining to the latter fiscal year. Estimates of appro- priations, 1929, *Total for 1028 $17,701,188.31 $528,460.00 15.000.00 $437.180.00 15,000.00 7/500.00 .. $360.209,003.53 serve bank 1,000,000.00 800,000.00 171,214.300.00 200,000.90 v 181,963,650.00 for- t e $4.258.793.705.53 appropriation for “postal service payable plemental appropriation for internal rev- of one new 5,000-kilowatt turbine and generator and repairs to motor equip- ment, and $12,000 for catalogue cases in the Libra No amounts are in- cluded in 1929 for these items. The supplemental estimates for 1928 in- clude $820,000 for enlarging and relo- cating the Botanic Garden and $185,- 000 for ventilation of the Senate Chamber, — House of Representatives. 530.791.86 125.00 .. 753091686 . 7.516,193.16 A iated for 1028. S0bhemental | estimate tied for 1098 .- ... . Total for 102 Budget estimate Reduction This involves a reduction of $22,- 598.70 for personnel and increases of $4,000 for contingent expenses and $4/000 for services and expenses in- curred in the contested election cases of the Seventieth Congress. LEG@SLATIVE MISCELLANEOUS. . iated for 1028.... .$166.960.00 Bkl eatimates for 199 .°166.960.00 B Botanic Garden. J——————————— ed for 1028, .......$127.217.00 BoREel eatimate for 1920 . 137.877.00 Increase 10.660.00 This involves increases from $79,417 to $88,077 for salaries and from $47,800 to $49,800 for repairs and improve- ments. 8. for 1929 Library of Congress. $1,406.132.00 128.000,00 Appropriated for 1028 Supplemental _ esti l"l'!';llzd for 1928 .. Total for 1028 ..... Budget estimate for 1930. Increase This involves increases from $380,805 to $626,425 for additional personnel and promotions for the Library, from $175,100 to $209,260 for additional per- sonnel and promotions in the copy- right office, from $63,650 to $65210 for legislative reference dervice, from $113,010 to $131,490 for distribution of card_indexes, from $16,865 to $19,120 for Sunday opening, from $10,000 to $10,500 for contingent expenses, from §120,402 to $124,562 for the office of the administrative and assistant and disbursing officer. The 1920 estimate includes an in- definite item of trust funds and gifts amounting to $160,000 which has not heretofore been included in Budget estimates of appropriation. The supplemental _estimates for 1928 also includb $30,000 for index of State legislation and $50,000 for index to Federal statutes. Government Printing Office. $3.100.000.00 52,000.00 52.000.00 This involves increases from $420,000 to $465,000 for additional personnel and $180,000 to $187,000 for general expenses in the office of the Superin- tendent of Documents. A 9! a BREeEesimata’ for To Executive Office. Avppropriated for 1928 . Supplemental estimates mitted for 1928 Total for 192 . 52840000 Budget estimate 1 4371180.00 Reduction ....... 91,280.00 There is an increase in amount for salaries of $1,220 to meet increase in grades, and there ‘are reductions of $500 in contingent expenses and $2,000 in maintenance. A supple- mental estimate of $90,000 for the protection of the Interests of the United States in leases on oil lands in former naval reserves is submitted to remain available during the fiscal year 1929, $438,460.00 90.000.00 8 .. 460.00 for 1939 Alaska Relief Fund. Appropriated for fi3iwer entimate tor 10,5122 S18:000.00 This is an indefinite appropriation of 10 per cent of the receipts from licenses collected outside of incor- porated towns in Alaska. The funds are dlvided equally among the four district judges to be used in caring for indigent and incapacitated per- sons. On July 1, 1927, there was an unexpended balance of $26,152.32 to {]‘18 credit of this fund for redistribu- ion. Alien Property Custodian. Anpropriated for 1928, Budget estimate for 1929 . 00.00 Reduction ...... 90.500.00 There is a reduction of $30,000 in salaries and expenses and of $500 in printing and binding. With the ex- ception of the salary of the custo- dian, all expenses of administration $98.000.00 7.5/ ] will be pald from allen property funds during the fiscal year 1929. Heretofore these expenses have been paid from appropriated funds. American Battle Monuments Commission. Appropriated for 1028, Previous continuin; OB a2)s o o ;. 3800.00000 27 1.305.750.00 Total for 1998, ... ... . 1.095.730.00 Budzet estimate for 1026 700.000.00 These are continuing appropria- tions. The estimate for 1929 is to provide for continuation of the con- struction of the memorials upon bat- tle fields and cemeteries in Europe in commemoration of the services of the American Expeditionary Forces. as authorized by the act of March 4, 1923. The total authorized appropria- tion for the projects contemplated under this act is $3.000.000, of which it is estimated $2 0 ‘will have been expended up to the close of the fiscal year 1929, Arlington Memorial Bridge Commission, .. $2.500.000.00 Boro- 000.000.00 10.000.00 Appropriated for 192 Previous _continuing DHIALIONA .. eees Total for 1928, .. Budget estimate for 939", 10000 00 The estimate of $2,300,000 for 192 together with previous continuing ap- propriations, should carry this project along to the close of the fiscal year 1929. The authorized appropriation for the entire project, including the bridge and its approaches, is $14.750,- 000 extending over a period of 10 years. With the 00,000 hereto- fore appropriated and the proposed appropriation for 1929, it is estimated that approximately $7,500,000 will have been expended by the close of the fiscal year 1929, at which time the construction of the bridge proper will have been practlcally completed. Board of Mediation. Appropriated for 1928 Budget estimate for 1926. $390.00000 147.002.00 " ¥ 008 00 reductions from $17 for salaries and ex- penses, from $100,000 to $80,000 for expenses of arbitration boars trom $3,000 to $2,800 for printing and binding. Reduction Board of Tax Appeals. Anprovriated for 1928. . Supplemental _estimal tod for 1928. ... Total for 102 Budzet estimate Reduction - 1.040.00 This reduction is in printing. While the estimate for printing in the fiscal year 1929 was increased $7.960 over the amount appropriated for 1928, it has since been necessary to submit a supplemental estimate of $9,000 for 1928 to comply with a re- quirement of the Public Printer that the printed decisions of the board be plated. This increases the 1 avail- ability to an extent that permits a slight reduction in 1929, Bureau of Efficiency. Avpropriated for 1928 ... Budzet estimate for 1939 $712.780.00 8. 780.00 for if) 740.00 $1.007.442.00 191.500.00 1.198.942.00 1.098.752.00 Reduction sseecseecss 100.190.00 This decrease is due to the fact that the major part of the work in connec- tion with placing the employees of the Prohibition Unit under the pro- visions of the civil service rules and regulations will be accomplished in 1928. Commission of Fine Arts Avpropriated for 19 B g Rt Avpropriated for 1928 Supplemental estimate ‘mitted for 192! Total for 1928, 5 Budget estimate for 1930. " 7.300.0 7.300.00 $2.608.240.00 950.000.00 3.648.240.00 3.675.000.00 Avropriated for Supplemental _ e: mitted for 1 Total for 19 s Budget estimate for 1929. Increase The longshoremen’s and _harbor workers’ compensation act, approved February 12, 1927, and an amend- ment to the Federal compensation act, approved March 4, 1927, increas- ing the maximum compensation from $66.67 to $115.67, and the minimum from $33.33 to $38.35, necessitated the submission of a supplemental es- timate for 1928 of $950.000. The increase of $26,760 in 1929 over the total for 1928 is to meet the addl- tional cost of administering the lonz- shoremen’s and harbor workers' compensation act. Federal Board for Vocational “1ucation. Appropriated for 1928 Bldret catimato for 1 Increase 54.770.00 This involves increases from $700.- 000 to $750.000 for cooperative voc: tional rehabilitation of persons dis- abled in industry; and from $68.230 to $73,000 for salaries and expenses, cocational rehabilitation of persons disabled in industry. Federal Power Commission. Appropriated for 1928 Budget estimate for 1939 Increase The increase of the Budget esti- mate for 1929 over the appropriation’ for 1928 is due to the inclusion in the 1929 estimate of $80,340 for salaries of civillan employees whose detail with the Federal Power Commission from the Departments of War, Agri- culture, and Interior has become per- manent, as authorized by the act of ' February 11, 1927. (44 Stat. 1075.) De- creases of $1,750 in the estimated pay- ments to States and $200 for printing and binding, totaling $1,950, gives a net Increase of $78,390. Federal Reserve Board. Budget estimate for 1929. ...$2.700.000.00 This is a permanent indefinite ap- propriation which is included in the Budget estimates of appropriations| , for the first time although the esti- mated expenditures have always been included. Supplemental estimate' for 1928 Budget estimate for 1929. In addition to the amount of $52, 186 carrled in the supplemental esti- mate for the fiscal year 1928, the Federal Radio Commission will spend approximately $44,000 from the ap- propriation “Enforcement of wireless communication laws, Department of Commerce,” fiscal year 1928. The re- uction, therefore, in’ the estimate for 29 below the estimated expenditures and | 9.000.00 | $39,792,466 PRESIDENT WARNS CONGRESS OF NEED FOR FUTURE ECONOMY Total for 1929 Is $4.258.793765—Policy on Suggested Tax Cut of $295.000,000 Defended. for 1928 amounts to $15,626 which is accounted for by the decreased re- sponsibility that it is contemplated the commission will have in the en- forcement of the radio act in 1929. Federal Trade Commission. Avpropriated. 1078.... ... ... .$088.330.00 | Bdket estimate for 1649, 1 "6 Reduction 50.00 The net decrease involves a redue-| 0 to $945,000 in the| jaries and expenses and | a se from $16.500 to $18,000 | for printing and binding. General Accoun ting Office. Appropriated for 1928. . Supplemental ~_catimates mitted for 1928...... Total for 1828, .. Budget estimate for 107 & 000.00 sl 10.400.00 £00.00 000.( Redaction This invloves reductions from $242 400 to $220,000 for contingent ex- penses and from $26,000 to §$25,000 for printing and binding. Housing Corporation. .8 9. cicc0 & 100,00 Appropriated for 1928 Budget estimate for 1 Reduction This involves reductions from $430,.- 136 to $403 of the Government hotels; 0 to $40300 for salaries to $22.000 for collections; from $1.000 | to $400 for maintenance’ of unsold | property; and from $5,000 to $4,000 for the foreclosure of mortgages. ! This supplemental estimate is sub- mitted pursuant to the act approved February 14, 1927, authorizing the appropriation for providing the cv poration known as the Internatiom Trade Exhibition, with funds for maintaining, promoting. and adver- tising the permanent trade exposi- tion at New Orleans, La., inaugurated September 15, 1925, Interstate Commerce Commission. 811.314.00 Appropriaf i 170.000.00 ion for 1928 Supplemental estimate submit- ®d for 1928 . Total for 1928. | Budget estimate for Reduction 5 Of the amount appropriated for the Interstate Commerce Commission for 1928, the sum of $15,000 in the ap- propriation for printing and binding was made available for expenditure in the fiscal year 1927. The comparable amount for expenditure in the fiscal year 1928 is therefore $7,966.314 and the net reduction in the 1929 esti- mates is $323,977. The net reduction indicated in- volves an increase for the general work of executing the laws to regu- late commerce from $2,460,600 to $2,564,500 to cover additional attor ney examiners, cost of reporting, and travel expenses, an increase for the investigation of accounts of carriers from $1,315,000 to $1,327,745 to pro- vide for additional travel expenses, and a decrease of $75,000 in the al- lowance for printing and binding due to the fact that provision is being made in the fiscal year 1928 to print accumulated volumes of valuation re- ports. The estimate for valuation of prop- erty of carriers shows a reduction of $363.214, due to the practical com- pletion of primary valuations in the fiscal year 1928. Public Buildings and Public Parks of the National Capital. Appropriated for 1028 . Supplemental _estimates mitted for 1928 . Total for 1928 .. Budget estimate for ‘sub- Increase There is an increase in amount for personnel from $1,710,560 to $1,724, | 530, as follows: Amount for increases within grades, $15,950; one additional guard for State Department, $1,020; nd a decrease incidental to repair work, $3,000; and increases in gen- eral expenses from $740,400 to $85 000, as follows: Electric elevator for Winder Building, $10,000; grill _for Washington Monument stairway, $10. 000; repairs to temporary buildings, $45.000; repairs to floors, War-Nav Building, $30,000; rent of buildings, $47,000; care of Emory Building $2,400. There are reductions in en- eral expenses as follows: Construction of vault for Navy Building, $20.000. sundry minor items, including care of Lemon and Cox Buildings and re- pairs to building, $7.860. National Advisory Committee for Aercnautics Appropriated for 1928 . Supplemental estima mitted for 1928 .$525.000.00 25.000.00 Total for 1028 . 850.000.00 Budget estimate for 1929, 600,000.00 Increase . 50.000.00 The increase of $50,000 over the total for 1928 is necessary to enable the committee to carry more fully into effect its program of general re- search in the fleld of aviation; to op- erate efficiently and continuously the new propeller research equipment; and to provide for the purchase of three or four airplanes of modern commercial types for conducting free flight research. Smithsonian Institution and National Museum. $939.711 80.000 1,019.711 LRX ropriation for 1928 . Sup;nl'!,;:\suul estimate submitted or 1928 . . Total for 1928 ... Budget estimate for i Reduction 44,950 The total for 1928 includes $80,000 for safeguarding the dome of the ro- tunda in_the Natural History Build- ing and $12,500 for construction of a | gallery over the west end of the main hall. ~ The 1929 estimates Include a new item of $25,000 for administra- tion of the Smithsonian Institution and increases from $46.855 to $47,- 855 for international exchanges, from $26,500 to $29,500 for furniture and fixtures, from $79,500 to $83,340 for heating and lighting, from $473,510 to §$483,110 for preservation of colieg | tions, from $13,000 to $17,610 for re. pairs to buildings, and from $1,500 to 000 for purchase of books, pam phlets, and periodicals for references. Tariff Commission. 1 ‘\nx'r;'mnm!] fo . $682.00¢ Total for 1998 .. Rudget estimate for i Increase There is an increase in the amount tor salaries and expenses from $708 500 to $738.000, and a decrease ir printing dnd binding from $12.500 t $11,000. . United States Geographic Avpropriation for 1 Budget estimate for 1 al for salaries and expenses and for printing and binding. United States Shipping Board and Merchant Fleet Corporation. Appropriation for 1928 . $12.200.000 In addition not to_execed S ation of $10.0 ned in the independent of- act | for e fiscal vear 1 . appropriated for 1998 . 5.000.000 for & % nd_operating 17.200.000 mate for 192 13688 Reduction . 3.601.250 To enable the Shipping Board Mer chant Fleet Corporation to operate ships or lines of ships which have heen or may be taken back from pur- | chasers by reason of competition or other methods employed by foreign shipowners or operators a special ap | propriation of $10,000,000 was- made for 1927. For 1928 the unexpended balance of thls appropriation, or $10.- €00,000, was reappropriated, of which amount not to exceed $5,000,000 w | made available, in addition to the $1 000,000 appropriated, for the purpose of meeting the deficit in the operation of ships for that year. The estimate for the fiscal year 1929 provides that the unexpended balance of this ap- propriation of $10,000.000 shall be made available until June 30, 1929, The estimate of $13,688,750 for 1929, together with the estimated cash po- sition for 1929, and such savings, if any, in operating expenses as may re- sult from the sale of active ships, as | opportunity offers, is considered suf- ficient to meet the estimated operat- ing deficit for 1929 United States Veterans’ Appropriated for 1028 Supplemental __estimate ‘mitted for 1928 Supniemental ‘mitted _for _reappropriat of unexpended balances Total for 1928 ....... Budget estimate for 1939 Net increase 31.660.000 Although the figures indicate a bud- get increase for 1929 as indicated above, the 1929 estimates are in reality $9,666,184 less than comparative ap- propriations made and supplemental estimates submitted for the fiscal year 1928. This seeming discrepancy counted for by reason of the 1929 esti- mates Including an item for direct ap- propriation of $74,500.000 for payment of casualty losses from the Govern- ment life-insurance fund and invest- ment of premium receipts accruing thereto. Heretofore no_amount for these accruing funds has been included in_the Budget estimates. Entering into comparison of 1928 appropriations and the 1929 estimates is also the 1928 supplemental estimate submitted for appropriation of $19, 400,000, and reappropriation of $35,. | 600,000 unexpended balances of Veter- ans' Bureau .appropriations required for payment of military and naval compensation. Of this §55.000,000 only 21,826,184 should properly be consid- ered as applying to 1928 requirements the remaining $33,173,816 representing a replacement in the 1928 fund of a similar amount expended. therefrom prior to July 1, 1927, due te depletion of the 1927 appropriation, properly chargeable against the fiscal year 1927. The need for such large additional amounts in 1927, 1928, and 1929 is caused by legislation liberalizing the compensation laws. It is estimated that the additional amount required in the fiscal year 1929 for the minimum payment of $50 per month in each ase of arrested tuberculosis, regard- less of origin, will be $20,000,000. The estim: duction of $2,500,000 from $42,500.- 000 to $40,000,000 for salaries and enses: an increase of $10,000 om $135,000 to $135,000 for‘x\ri‘wm~ ing and binding, the increase be. ing for procurement of punch cards from the Government Printing Office which have heretofore been purchased clsewhere from the appropriation sal- aries and expenses: a comparative in- crease of $4.673,816 for payment ot military and naval _compensation; a_decrease of $3,400,000 from $35,. 275,000 to $31,675,000, for medi- cal and hospital services, is ac tually a decrease of only $1,575,000 for the reason that the estimated cost of hospitalizing Veterans' Bureau beneficiaries in the National Soldlers' Home branches, $1,825,000, for which an amount has heretofore been appro- priated to the Veterans' Bureau, al lotted to the National Home for Dis. abled Volunteer Soldiers and deposited in the Treasury to the credit of mis. cellaneous receipts, is not for the fiscal year 1929 included in the estimates for appropriation to the Veterans’ Bu. reau; a decrease of $7,250,000 from $114,000,000 to $106,750,000 for pay. ment of military and naval insurance. The appropriations for this purpose will decrease each year, as, pursuant to law, term insurance policies ‘were converted into Government lite poli- cies on or before July 2, 1927, or be- came inoperative after that date. Department of Agriculture, Abpropriated for 102 SUpplemental eatimates gt $130-862.080 ted for fiscal year 1055 i 3.481.560 143,334,540 Tota! for 1928. 4 estimate for ceven 142.753.220 Net decrease .. 891.320 This net decrease is largel: reductions from $8,380,000 Soe "’,‘g’,;;;o,',g for forest roads and trails; from $1.- 800,000 to $1,500,000 for cooperative work in the Forest Service; the latter nsure being an estimate of the recelpl (Continued on Page Forty,) T 19