Evening Star Newspaper, January 31, 1928, Page 4

President and Budget 'TAX REDUCTION IS STRESSED IN MR. COOLIDGE'S MESSAGE Orderly Use of Resources of People of United States Held Aim of. Government. States Gov- | President Coolidge “mancial siatus of the country. It has od us to hire money at & lower than any other business in the world. It nas been effective in the intenance of prosperity. indorsement of the taxpayer v of a balanced budget—e: thin receipts—must not be It must not be endangered The great good which has come o this country from a balanced budget is too measureless, too far-reaching. even to suggest any other course. This Nation is neither 00 weak nor too improvident 10 meet its obligations as they occur. “The budget for 1923 which a surplus of $252.540.000 is now before the Congress. The action so far | taken by the Congress on that budget m lish the needs and concrete e at large ‘Government loved it makes e cer- makes wages r It makes give betier returns and in-| rtunity for saving. i com{orts, fe is widened. | Y ¢ comes for broadening edu- | cational advantages. Leisure is secured for the better appreciation of literature, and art. Means exist for the nistrations of charity. Contentment and peace of mind come under these conditions. because people have the feeling of success and the consciou: v are rising superior Our efforts are nof any mean and sordid mate- | but inspired by a desire to, e the me: moral and spirit- | are of the people. { Worth Working For. “That. in short, is the meaning of the budget system of the United States. If it is not worth working for, then I do not know anything that is worth working | for. The members of this business arganization are certainly entitled to ke a great deal of pride in what they | thave accomplished. We are not only working for our own benefit but un dertaking to promote the general wel- | fare of all the people of our own Na- tion and carry the same influences to | every quarter of the globe. Prosperity, | ‘with peace and contentment. is an en- viable situation. We have that within our own Nation. We would not have 1t if the business of our Federal Gov- | ernment had not been well managed. | ‘The results of that management are portrayed in the present condition of our Nation. The enormous importance of construetive economy in Federal| operations has been established. It is| here to stay. The prosperity, peace ' and contentment of the people demand it. They furnish the money to run the Government. They have a right to have it run for their benefit. | “In this great business of the Fed- eral Government problems of magn! tude are constantly arising. Fach day brings forth its differing problems, so that it is essential that we keep our principles constantly before us. We gather here twice each year for that purpose. Our record is represented by Wwhat has already been done. But ali| of this could be undone if we did not proceed carefully and wisely in our future operations. We are here to pre-| pare for those operations in the light ©of past experience. The best gauge of the possibilities of the future is the | success of the past. We are not per-| fect. We do not claim to be. But since the inauguration in this Nation| of the budget system we have been steadlly improving our business man- agement. You have your individual tasks. It is essential, however, that| you know the effect of your task upon the Pederal finances as a whole. This | is an essential factor to successful| organized action. It is one of the basic reasons for these meetings. Orderly Plan Asked. “We are now facing the time when §t is even more cssential that we proceed in an orderly manner. The result under seven years of the budget system has been % the advantage of the people. It is for that, and that pione, that we labor. The advantage: 1 the people have been manifold. I has found direct expression in vastly diminishing our public debt and in| three reductions in taxes. Both of thete would have been impossible without careful and prudent manage-| ment of the expenses of our Naton. “On December 31 last the public| dent stood at approximately $18.000.- | 000,000. We can only ualize what is represented by that fig: by going back o the days of 1917-1813. when our debt was increased from slightly over $1,250 000,000 1o nearly $26,600.- 000000. This increase in our debt from $1,000,000000 1o $26,000,000,000 | occurred within the short space of slightly more than two years. But! Cespite the heroic efforts of both the exscutive branch and the legisia- tive branch of the Government, it has required eight and or rd years 1o yeguce the debt by $8.500 “This how much easier it is 1 borrow | y than W pay ¥rom April, | 10 December covering a | of more than s, wie paid | Ay t 00,000,600 | ) of war in April 1 intevest and | $17,000,000.000. | 1 1 e 1000990 a day less than | & the { charges. Two b 5 per day ALl of 1his lub for the oo of & saving of hu- wed in tex ye- e, concerped 1 redin- ghitly more than L Uirer yeauetions et wtioraed aitions which nake his pussibie Thaough rte the budget hase Vwen, belenced krd & surplus shown. The benefie of e resuil have gone W e peonle Bucks Moderate Slash, “Y have expressed myslf in fevor of further moderate tex reduction. 1 hsve InGicated U marimum reducton we wow sford. ‘Lhere was 10 pariisen that recommendstion. 1 be Lone i 1s Ninal con L Congress. Ve should tiwe wise policy estab- | ay may accrue. That. indirectl: | to the reductioniof the public debt. indicates no intention of diminishing the expected surplus. With a continua- tion of the efforts for economy in Fed- | erations we can have a moderate | eral op: reduction in xes and at the same time adequately meet the urgent na- tional problems which are now con- fronting us. Past economy has given us the n for internal improvements bments and more adequate national defense. But we cannot stand the cost of the things which we should and must have, if we adopt excessive tax reduction. It is far better to have no tax reduction than to have too much. We have the public debt to which tc v every dollar of whatever surplus 4 s tax re- duction Every dollar applied to the debt saves perpetually the interest on that dollar. It is a contribution to the welfare of the people, a logical step nearer adequate tax reduction. Duty Is Cited. 0 you of the Federal service comes the duty—I may say the privilege—of | continuing the campaign of rigid econ- my of public funds. The success which has crowned your past efforts is even more essential for the future. Last year, 1927, our expenditures reached the lowest level since the world con- | fiict. This year they have necessarily | taken an upward curve. We must hold | that curve in check. | _ “We are wiser from the effort which | brought our expenditures to the low ebb of 1927. That effort was started in June. 1923, and had for its objective a reduction of our annual expenditures 1o $3.000.000,000. In fixing that amount | we excluded alone the amount applied | It | was a courageous undertaking. We | spent in 1923 $3,295.000.000. Our| campaign, therefore, contemplated the | elimination of $295,000,000 from our ex- penditures. Unafraid and unterrified | by that formidable $295.000.000, you | bravely sought your objective. While | in some of those fighting years you lost ground, the average tendency was | downward. Despite what must have; been at times most discouraging con- ditions, you never lost hope. Notwith- standing legislation that swelled ex- penditures by many millions you still | fought on, undismayed. At the end of | the fiscal year 1927 vou saw your brave effort rewarded with complete success. The expenditure for that year, exclu- sive of reduction of the debt, was $2.974.000.000. This gives a reduction below 1923 of $321,000,000. Truly you fought a good fight. I congratulate you on your very great and constructive achievement. B “1f we added the constantly arising| new and urgent requirements to what we are already doing; Federal obliga- | tions would simply be a mathematical | addition. We have not been doing this. Each year all of our expenses which are not specifically fixed by law are given exhaustive examination. In this way we have excluded old activities no longer necessary or have curtailed them where curtailment was proper. This has made contribution toward meeting new and urgent needs without the re- quirement for greatly increased funds. This progressive and systematic ex- amination of all of our activities must constantly go on. It is the only way to bring real economy into the Govern- ment’s business. This applies to our continuing work. This scientific esti- mate of our requirements has not pre- vented substantial saving in their actual execution after the appropri- ations have been granted. The Con- gress has wisely protected its appro- priations by laws to prevent their over- obligation. ‘Those laws require an orderly apportionment of appropriated funds so as o prevent obligations being incurred in one part of the year which would give rise to a deficit in another part of the year. We have carefully ob- served that requirement We have gone farther in our apportionment of ds by setting aside a general reserve to provide for the unexpected. Needs Are Arising. “Requirements that cannot be sched- uled, needs that cannot be foreseen, are always arising. They generally re- sult from conditions that make the need urgent. 1f the need does not arise the money is saved. The wisdom of that policy has been definitely shown. It has justified itself so fully that there is little need of my expressing to you again my expectation that you will continue o adhere to it. The budget gives the President the opportunity of | expressing o the Congress what he re- quires. The appropriztions which may be granted by the Congress constitute the maximum which you can spend They do mot constitute the spending minimum. From the reserve balances which have been st up in the budget ears o June 30 last, $330,000,000 has been saved. This has gone to debt re- duction. It may sdd to the under- standing of the concrete benefits of this course 1o state that the amount saved through the general-reserve policy ex- ceeds L amount which the engineers estimate s required for Mississippt flood proweuon, It should be 8 matter of gratification w Federal administrators that their loyal adherence to this ye- serve policy has resulted so happtly. This splendid result L the policy’s elo- qGuent &nd unsnswerable advocate. “Economy n Pederal operations 1s Lere W stay. ‘Trie economy means the pent of unnecessary expendi- no thought of unwise, selentific imitation. Rather, it makes | wmple provision for things that must be Gone. Pressure for retrenchment, in- sisterice Upuh wiser spending, have fur- cd capital W meet our new demands vithout expansion of our expenditure program. We cannot absorh by economy Wil Of ur Prospective new requirements It we wbsorh a5 much as possible, w e reniized the Wrue mesting of econ- oy, 1y saving money whete money can progperly b saved, we have devel- oped whist 15 more properly wrmed ConsAPUCUYe eCOBumy rOogTam in our Feaera) service. A lurge source of ex- prenise 38 our national defense, “Lhe cost Of Vs for next year iy estimated at ap- provimutely $650,000,000, ‘That mesns un wvernge expenditure of $1,233 for every minute, or §20 50 for every second of the year. We are ulso perfecting our physical plant. ‘The bullaing program us oW planned will cost spproximately 450,000,000, Of this amount $211,000,- 000 has wlready been approved for cus- | vumbouses, post offices wnd other build- g needs for the public service. The Army program contemplates sn ex- penditure in excess of $100,600,000, The fore- | | ton. THE _EV G DESCRIBE NATION’S | | It has the | We have other great programs of ex-| | penditurcs which could not have been | financed without economy in our opera- tions. i Navy Program Viewed. | “A construction program for the Nav | is now receiting the consideration of | Congress. The authorization of 1916 | was the last complete Navy program. | and that has been practically completed. | | The recommendation now before the | Congress to replace obsolete naval ves- scls and moderately increase our naval | sirength contemplates an orderly con- | struction procedure, nothing more. It contemplates that the construction pro- | | gram will be carried out as conditions | dictate and Treasury balances warrant. | 1t considers our own requirements alone | and carries no thought of entry into! competitive construction with any other | nation. The plan I have indorsed does | | not contemplate any limitation of time | I | as to the beginning or the completion of ' all the people who have contributed to | this tentative program. But it does con- | | template the building of the ships as fast as possible. “In preparing your estimates for 1929 | you were advised that only $3.300,000,- | 000 would be available for that pur-| pose, exclusive of tax refunds and cer- tain other excepted items. The budget | now before Congress carries for the | comparable items which that limiting | amount was intended to cover a total of | approximately $3.261.000,000. It wiil be | seen that we were well within the limit. This proved most fortunate, as it en- | abled us to provide for urgent needs | not contemplated when the maximum | was established. One of these was the item of nearly $20.000.000 for meeting the Government's obligation in connec- tion with the retired pay of Federal em- | ploves. We were enabled, because of | that margin between your estimates | and the limiting amount, to provide for other equally urgent requirements. “That is the meaning of constructive economy. It is not a policy of nega- It calls for positive action. It/ proceeds in accordance with the dic- | tates of common sense and the princi- ples of sound business. It is provident. | It looks ahead. - It undertakes to make plans today for the needs of tomorriw. It is because of care in expenciture | that the surplus has been accumulated which reduced our debt, which cut down our interest, which gave relief from taxation, and which has still left a margin for public buildings, for in ternal improvements, for national de. fense. All of this is pre-eminently con structive. As I indicated at the outset, | it has brought brighter opportunities to every home in the land. If there | is any one thing on which the people | of this Nation should insist, it 1s the | continuation of this policy in the han- dling of thefr national finances. | “One of the very important elements | of the Budget Bureau is co-ordination. | | ture of the Government. STAR. WASHINGTON, FINANCIAL STATUS Left: President Coolidge. Right: Gen. Herbert M. Lord, director of the budget. It is by this method that the bureau maintains contact with all the depart- ments, and to a certain extent the de- partments maintain contact with each other. This enables a considerable body of men to have a very clear compre- hension of the entire financial struc- ‘This has been brought about, not by bringing in experts from the outside, but by tak- ing people already in the service of the various branches of the Govern- ment and securing the full benefit of their knowledge and experience. In the functions ordinators are the representatives of the President and entitled to his pro- tection. It is an exceedingly important work that is done by them, and they are entitled to great credit for the suc- cess of our efforts, Success Due to Many. “It would be impossible to designate the success of the efforts for the orderly financing of our national revenues under the budget system. In the first port of the people themselves. To this has been joined the approval of al- most every one connected with the Government, both in and out of the Congress. As all appropriation bills originate in the House, it is evident that the chairman of the appropriations committee, Representative Madden of Tiiinois, has had a very large part in wisely balancing our expenditures in accordance with the policy of economy. In the other chamber, this problem has had the advantage of the experienced wisdom of Senator Warren of Wyo- ming. While it is the President who de- termines and submits the budget to the Congress, he has to rely to a great ex- mendations carried on under the direc- tor of the Bureau of the Budget. If | there is any organization within the confines of our country that has ever made a request for cutting down an appropriation, I do not know where it is. The number who are engaged in advocating increased appropriations is more than legion. Gen. Lord has been a success as the head of the bureau because he has had the judgment to say yes when the facts warranted and the courage to say no when the facts warranted. His only desire is to find out what each situation requires, and recommend that it be met. Any worthy object, any needed appropriation, could have no better friend. He has had ing. He is a clear thinker and plain who administer the affairs of the United States Government. One of the chief reasons for holding these conferences is to listen to the counsel you.” 170 CHOIR DIRECTORS | AND ORGANISTS MEET Church Music Is Discussed at Din- ner in Calvary Baptist Church. A fine proof of the spirit of co-op- eration and live interest in the better- ment of church music in Washington | was evinced last night, when 170 choir | directors and organists attended the dinner and lecture given at Calvary | Baptist Church, Eighth and H streets, | under the auspices of the Church Music | Councll, Dr. Clarence Dickinson, honor guest. Preceding the dinner there was & reception. Dr. W. L. Darby, executive secretary of the Federation of Churches of the District, and Dr. J. R. Duffleld, chairman of the Church Music Coun- cil of this city, stood in line with Dr. Dickinson and introduced the guests. Dr. Dufficld was the toastmaster and introduced the speakers, who gave | short talks at the dinner. Dr. James | Shera Montgomery, chaplain of the | House of Representatives, spoke with freshness of viewpoint on the subject of “Pastor's Attitude Toward Church Music.,” He stated that he feit the music on church E:olllml should carry a real message to the congrega- tion, be thoroughly understandable, yet Iift the hearers with its fine caliber, both of words and musical content, rather than lower their standards mu- sically. It should not be too compli~ eated for general appreciation, but should have an inspiring quality. Dr. David Roberts of the Library of Congress, a personal friend of Dr. Dan- fel Prothero’s, gave an interesting sketch of the Jife of Dr. Prothero, who 15 o conduct the festival here May 2 Dr. Darby and Dr. Duffield also touched upon the purpose and aims of this festival Following dinner Dr. Dickinson, an suthority on church music, & composer of note, and organist of the famous Brick Presbyterian Church of New York City, talked on “Essentials for Buceess in Church Music Directing.” Dr. Dickinson presented three anthems, two of them his own works, and the uum{uw sanig them to his accompani- ment, CANADA COUNCIL ELECTS. | B1r Robert Borden Named President at Ottawa Meeting. OTTAWA, Ontario, January 31 (A = Delegates Lo the first annual meeting of e Nutional Councl of Canada, In- stitute of Natlonal Affairs, yesterdiay elected Bir Hobert Borden president of the organization, John W. Dafoe of Winnj L WS clected vice president; John R: on_ of Montreal, secretary, and Fred N. Bouth- ham, Montreal, treasurer, which outlined the council’s purpose to promote an under- standing of international questions, particularly as they te o Ci A and the British Empire, was adopted. Teachers' Union Plans Benefit, “The ‘Teachiers’ Union of White Bchools of the District will Told @ benent per- Eum of 810,000,000 has been authorised fur the purpose of properly housing our J 4 Luus Tar vigialy tolloved, of kecping our expenditures within our 1e ceipts. That 1 bad in mind in | I B b e b forelen representatives. This 1 kn ex- pensive but amply Justified progra e sy, b Rands LI VR formance at Keith's Theater Febroary 10, Froceeds will be used W carry on rrent-ten association activitles TAX CUT TOO HIGH WORSE THAN NONE, PRESIDENT HOLDS (Continued from First Page.) mind in making my recommendation. | It has made a rich contribution to the present splendid financial status of the country. It has enabled us to hire money at & lower rate than any other business in the world. It has been| effective in the maintenance of pros- | perity. It has the hearty indorsement of the taxpayers.. “The budget for 1929, which forecast a surplus of $252,540,000, is now before | the Congress. The action so far taken by the Congress on that budget indi- cates no intention of diminishing the expected surplus. With a continuation of the efforts for economy in Federal operations, we can have a moderate re- duction in taxes and at the same time adequately meet the urgent natlonal problems which are now confronting us. Cut in Public Debt. “Past economy has given us the means for internal improvements and | developments and more adequate na- | tional defense. But we cannot stand the cost of the things which we should and must have, if we adopt excessive tax reduction. It is far better to have no tax reduction than to have too much. We have the public debt to which to apply every dollar of whatever surplus may accrue. ‘That, indirectly, is tax reduction. Every dollar applied to the debt saves perpetually the Interest on that dollar. “It is a contribution to the welfare of the people, a logical step nearer adequate tax reduction. “We cannot overemphasize the im- rtance of the reduction which has mfll made In our debt,” Mr. Coolidge added. “Our interest cost s stll a reat burden. ‘This cost for next year, owever, will be $1.000,000 a day less than it was al.the peak of our interest charges." ‘Asserting that economy in Federal operations Is here to stay, Mr. Coolidge declared that by economy he meant “constructive economy” that provided ample appropriations for necessary ex- which they perform, the co- | place, it has been a success because it | has had the active and energetic sup- | tent on the investigations and recom- | great experience in Government financ- | of Gen. Lord, who will now address | D. €., TUNSDAY, Brig. Gen. H. M. Lord, director of the Bureau of the Budget, spoke as follows at the semi-annual business meeting of the Government last night: Mr. President and Members of the ss Organization of the Govern- This is the fourteenth budget meet ing and the twelfth appearance of the present Budget director before this or- ganization. It is something of a task, | twice a year, to appear before you and discuss ‘matters concerning many of which you are presumably as well in- formed as the speaker. Your patient forbearance and courtesy alone make it possible. The Budget director confesses there are times when he longs for a spot where budgets cease from troubling and budget problems are at rest. “Referring to the Budget director and his duties, President Coolidge in one of | his addresses said: ‘He does not occupy | a place of ease * * * but a place, |of difficulty’ * * * We have in the | Federal service many brilliant adminis- trators. They handle projects as am- bitlous and as important as any in the | world. They are as able and as compe- | tent as 2ny executives and administra- tors in the world. In the very nature of things they are almost exclusively | absorbed in their own great undertak- ings and can have little or no thought { ot all the other projects which must be | financed out of the Federal Treasu: | Their combined requests for appropria- tions alw exceed available funds by millions. For 1929 the executive de- partments asked $128,000,000 more than could be granted. That was the amount cut from the estimates by the Budget Bureau, acting for the President. The seven annual budgets which have been sent to Congress have carried a total of | $27.000.475.970.55, which is $1.690,623,- | 459.16 less than was asked. That sur- prising amount—8§1,690.623,459.16—was cut from executive estimates for those seven budgets, and yet the business op- erations of the Government were never ‘conducbed so efficlently. The Budget | director has the simple task, under the | personal direction of the President, of | Atting these executive estimates within the limiting amount established by the | President after careful study of control- {ever in mind the welfare and interest of the taxpayer, who foots the bill. “In all the stress, pressure and peal for funds for projects and purposes which the director, with his knowledge of the entire field of Federal operations. i knows should not be approved, he | steadies himself, clears his mind and strengthens his courage with the words | of President Coolidge. the taxpayers' interests are our only concern.’ Federal Government Costs. great Government in 1927. Of j amount $519.554,844.78 was applied to the public debt. The remainder, used for the ordinary functions of govern- ment, was $2.974,029.674.62. Here, in simple, plain figures, is the triumphant realization of our years of campaigning to bring annual Federal expenditure, exclusive of debt reduction, down to | $3.000.000.000 and bettered it by $25.- {970,325.38. At the last meeting of this organization, in June, the speaker con- | fidently prophesied this splendid achieve- speaker. & great benefactor to those | mentand stated that whenwe couldpoint | | to the glorious result and say, ‘There it is’ we would celebrate the victory | with appropriate fireworks. What may | constitute a proper celebration is a puz- propriate, for there has been nothing explosive about our campaign. It was a long. steady, grinding pull. Skyrockets are out of the question, for our expendi- candles are too tame and commonplace for 5o signal an achlevement. Inevitably we reach the conclusion that this great triumph in Federal economy requires no formal celebration. effective celebrant. Like the Washing- ton Monument, it 1s most impressive un- adorned. It stands out eloquently as r]};n;_'smnnest annual expenditure since ‘Somebody scoffed, Oh, you'll never do that; Bue we took off our coats and we took off our hats And the first thing we knew we'd be- grin, Without any doubting or quiddit We went in with a swing as we tackled the thing That couldn't be done, and we did it.* “Edgar A. Guest (altered). “Against a total disbursement last | year of $3.493,584,519.40 we have an es- “imated expenditure for the current year of $3,621.314.285, a threatened increase of $127,729,765.60 over last year's record. ‘This increase is all accounted for, and more, by $32,000,000 additional for the Veterans' Bureau, $71,000,000 more for national defense and $34,000,000 in- crease for internal revenue refunds over last year's need. These total $137,000,- or no opportunity for executive modi- fication, Estimated Expenditure. “Exclusive of debt reduction, the es- timated expenditure for this year is $3,085,129.211. And, lo and behold, here 15 our $3,000,000,000 campaign facing us aguin, big as life and full of trouble, 1 fear you may have thought that hav- ing once attained that $3,000,000,000 ob- Jective it would be definitely relegated to history and that we had given it a heartfelt good-night. Some of doubtless felt like the little man who, somewhat excited after a heated con- troversy, fired this parting shot at his adversary: “The sooner I never see you again the better it will be when we next meet. "I have the courage—you may call it temerity—to hope for the elimination penditures. A large source of expense, Be sserted, 18 for hational defense, “The cost of this for next year is estimated at approximately — $650,- 000,000,” the President continued, “That means an average expenditure of $1,283 for every minute or $20.50 for every second of the year. The Army prog contemplates an expenditure n excess of $100,000,000, and & con- struction program for the Navy is now recelving _ the consideration ~of the Congress.” NATHAN STRAUS HONORED ON HIS 80TH BIRTHDAY Noted Philantiropist Felicitated by Prominent Persona, Throughout World, By the Associated Press, NEW YOREK, January 31.—Nathan Btraus, philanthropist, today receilved fellcitations from prominent personages throughout the world as he observed his elghtieth birthday quiely at his New York home, A bound volume containing messages from President Coolidge, governors of Tickets can be obtuined from Mrs Glesson at Mactarland Junior High or aL hier Jwme, TS Decatur " M ing | The butlaings sre necessary. Construes' Behool L st of the Btates, Gen. John J- Persh- ing_and 160 others was [»mmm him by Herman Bernstein, sulbos snd closy Wiend of M, BLpus, - of that $85129,211, which is the only hurdle between us and another $3,000, 000,000 victory. I know it i3 a large order. You have, however, honestly carned a reputation for doing big things. Call your executives together, study the balances of your appropria- tions, rally your people to the standard of further saving. What a God-given opportunity for high-grade administra- tion! I am not proposing the postpone- ment of any necessary expenditure. 1 am urging and expecting the elim! tlon of every item that can be cut without detriment to the public service. Wo may not make the grade. We will not, however, ignominiously surrender rest effort plus indicated for next year 13 only 2,640,283, w result reached after the most careful and studied esti- mate of possible receipts and expected expenditures ever made by the Hureau of the Budget. 1In that estimate no allowance has been made for maor projects under conalderation by Con- gress, Some of theso projects are u sured of enactment into law, with sub- sequent call upon the Treasury. The Preaident has vecommended tax reduc- tion with $225,000,000 as & maximum. In his budget message he stated that this recommendation is based on an un- Intertupted continuance of national prosperity and the enforcement of a policy of diastlo economy I national apending, AL the same Ume ho callod attention to his duty to withhald ap- proval of projects ang expenditures that would Mueslen & {}W bydugh JANUARY 31, FINANCIAL PROBLEMS OF U. S. DISCUSSED BY BUREAU CHIEF General Pays High Tribute to Adminis- trators—Views Requests for Appropriations. | ling conditions—study that keeps for-!| “It cost $3.493.584519.40 to run this| this | $3,000.000,000. We got down to the| zling problem. Firecrackers are not ap- | tures went down, not up; while Roman | It is its own most | 3 | tles. At least, no one has ever yet done it, | gun it. With a lift of our thin and a bit of al you | b 1928, There can be no doubt where our duty lies. We follow the President's lead. His policy is our policy: his wish our desire; his fight our fight; his victory our victory. From now on every doubt ful project is condemncd: every ques- ‘onable expenditure under indictment. | That only which is imperatively neces- | ary for thz public welfare has right of way. If cver opportunity and duty knocked at the same door at the same | time it is here and now. Saying Something. “The budget® director has been ac- cused of assuming authority not his own; of interfering with the preroga- tives of Congress: of being a sort of trouble maker unfortunately created ta meddle with the legitimate functions of | Federal agencies and worthy organiza- tions who could thrive mightily wi easier access to the Federal Treasury | For the following appropriate story I am indebted to Gov. Moore, of New | Jersey: “An Irishman bought a parrot that | could speak several languages, and had | it sent to his house. On arrival home | in the evening he asked his wife: Mary, how's the bird?’ ‘He's not done yet.' replied Mar ““Not done vet? What do ye' mean?’ ‘I'm_coeckin® it.” “‘Cookin’ it? Whv. that bird could talk fluently in nine languages.’ i ““If he could do that, why didn't he say _something?’ | | *For these many months the budget | director has possessed s soul in patience, comforting himsclf with the thought that while to be able to con- verse in several languages is valuable, to be able to hold your tongue in one | is priceless. This policy. however, did not work out well with the parrot.! He should have said something. | “The budget director derives his authority solely from the law and the President of the United States whose | policies he tries to carry out. These | policies have always been clear cut. | He has never promuigatsd a policy | that was not thus clearly outlined by | the President: he has never enforced gram that was not the Presi- | dent’s program: he has never know | ingly assumed authority beyond that definitely delegated to him by the Chief Executive. He has tried to be | humble. Chagrin at his own short- | comings have greatly assisted in the | maintenance of a becoming humility. | Saving All Along Line. | “I call your attention to the report of the budget director for 192 ‘This | unimpressive and modest pamphiet of 219 pages makes no appeal to the un-| initiated. It has no pictures, no charts. | It contains nothing to attract the at-| tention of the casual reader. It is, however, illuminated with intriguing stories of faithful service by our Fed- eral workers. Within its salmon- colored covers is the romance of Fed-| eral economy. In terse, dry-as-dust! statement is a revelation of the loyal,| successful and patriotic effort of the people all through the service to con- serve th> taxpayers' money. The most casual survey of these reports of economies effected by the departments | and establishments will convince the! most skeptical that saving has become | |a habit in the service: that the prac- tice of economy is mot a perfunctory | performance but an interesting, in-| spiring and highly profitable pursuit. | “Exclusive of savings made by the| co-ordinating boards, which are by no | means negligible, the various items, big and little, that can be stated in fig- ures, total $19.016,760.49. and most of | The Navy to $3.734.37893, which became available for needed equipment. The Army follows with a record of $3.535.-! 546. The United States Shipping Board and Merchant Fleet Corporation | clatms third place with $2.527,000 to its credit. Fourth in the list is the| Veterans' Bureau reporting economies amounting to $2.066,543.90. | An alert employe of the Depart- | ment of Agriculture devised a co trivance to use glue instead of se ing wax on stoppers of tuberculin bot- | As a result one man can dof the work that required 10 under u:ci old method. “The Bureau of Standards, where| they do so many wonderful things. showed that waste from condemned mail pouches made high-grade bond | paper and saved $17.000. stead of buying piecemeal made a definite quantity purchase of pape! clips—those rather indispensable des conveniences—saving $3.280. If we can supplement that with a crusade to limit the use of these clips to the pur- holders, cleaners, watch | hair pipe | chains, ear reamers, shirt-slceve ad-| justers, Ford repair parts, toothpicks. | bachelor buttons, cuff links and toy something to that saving. Postal Savings. “We were all interested in the sav-! ing made by the Post Office Department | in eliminating the blue stripe from its| mail sacks. That saving of 1 cent a| used annually goes on from year to year just as the unnecessary expense had | previously gone on from year o year. ‘The Post Office people come to us now with another interesting saving 1 hold in my hand an ‘Application for Domestic Monev Order.’ Approxi- mately 250,000.000 of these forms are used each year. The department has reduced the size of that application by one-quarter of an inch, saving there- 8,152 & year. | 0 show that our savings are not | all confined to small figures, please note that the Government Printing | Office saved $209.000 in the cost of | postal cards and domestic money or- | ders for the Post Office Department, | very largely through improved produc- | tion _methods. | “The use of rubber drilling and rag ' board Instead of woolen blanketing on | flat-bed printing presses in the Bureau of Engraving and Printing saved the taxpayer $108,000 | “And these were all constructive ' by economies —funds saved from waste improved methods and made available | for tmportant and essential needs. | A correspondent_cautions us not to | %0 emphasize the subject of sconamy as to interfere with necessary Government | functio He sends the following story | to 1llustrate his point: | “A hunter lost his dog, & valable setter. He tnserted an advertisement | fn the local paper offering a reward of $25 for the dog's return. On the afternoon of the day of tssue he ap- plied &t the newspaper office for a | copy of the paper, and found no one there but the negro janitor, “Isn't there going to be ‘"f “m\rr today?* he asked ‘No, sul,' replied the janitor. ‘No pa- per toda; erybody's out hunun' fo* dat daw “The atory s a good one, but the warning 1a not needed. Stresaing econ= omy has not interfered with ral eMotency, It has materially and markedly fmproved ft. We have not stopped anything necessary i order to find a saving. Wo not only find the dog, but we fssue the paper, and » betler paper at that he apeaker, prior to entering budget work, was not much of a club man. Far years his only afiltation of | { but accurate enoug! “The General Supply Committee in-| s poses intended, and use less for bobbed | eqs a to use while telephoning. we can add ! w, yard on the 3.000.000 yards of mm'm‘ mu Club of Washingion. That is his only | club connection today with the excep- tion of certain Federal clubs which hn' has assisted in organizing. A little hon- est effort and a sacrifice now and then in the interest of the Government is | all that 1s necessary to win and retain | membership in good standing in the Fedcral clubs. The firt of these, o ganized in January, 1925, was the Two Per Cent Club, instituted to reduce | the Federal expenditure program for that year by that amount. It secured | at once a large and virile membership, and saved $60,000,600. In June, 1925, | the One Per Cent Club came into beinj and quiet d effectively reduced the Government's expenditure program by $62,000.000. “In January, 1926, the Two Per Cent | Personnel Club was organized for the purpose of saving at least 2 per cent of the money appropriated for the Fed- eral exccutive civil service. Th did not contemplate the discharge of any person or persons from the Federal service. The average normal overturn amounts to 9 per cent. It was pro- posed that at least 2 per cent of the allotment for salaries be saved by pe mitting a sufficient number of these vacancies to remain unfilled. Today we have the inspiring and satisfying detail of that effort to save. Of 28 depart- ments and establishments listed as eli- gible, 20 qualified for full membership. | Considering all factors involved, the In- terior Department heads the list with a record of 7.683 per cent. The 4 Department, with a record of 4,875 per | cent and an actual saving of $634.494, is number two. The actual saving ef- fected by the Two Per Cent Personnel Club was $21,573436. And this very material economy resulted in no loss of efficiency in the service. “And_this constructive organization —the Two Per Cent Personncl Club— rating again this year. Its policy | to every Federal agency. Some of the Federal establishments are slow in reporting progress this year. I hope they may not be found wanting when the check-up is made at the end of the 12 months. If after honest effort Fed- | eral agencies are crippled or fall in the | struggle, that is honorable. but to be missing from the fignting front is in- defensible. | Controlling Correspondence. “A year ago we Inaugurated the Cor- | respondence Club. Tarough its efforis we hoped to make worth-while reduc- | tion in Government correspondence. | While real improvement has been e fected, it is p; properly organize the effort. The Fed- eral Board on Simplined Office Pre cedure is preparing standard recon | menaations, which I am satisfied will be effective in curtailing the great out- { put of communical s. As a result | of practical tests with a group of stencgraphers it has been found that it cos 26 cents a leiter to carry cn i's profuse correspondence. This figure is not final, to be significant and startling. It would be an exce'lent plan for Government personnel respon- sible for correspondence to have that surprising ‘26 cenis' given prominent place on their desks. It may serve as a deterrent. “The Woodpecker Club is our pewest and in some respects our most esting organizatio June last for the s ing opportunity for the rank and file of our army of emploves to enlist in & 100 per cent campaign for small sav- ings. No reports are called for a settl ganization. have reached us. Some _reporis. ‘The pos Richmond. Va., June 20. 10 days after | the launch: of the movement organized his workers. This same Rich- mond postmaster is & high light in our saving campaign. In 1926 he effected economies in the expense of lighting the Richmond post office that lowered the | cost from $6.435.35 to $1819.70, a re- duction of 71.7 per cent. July 1 the Oakland, Calif., post office organized ‘Woodpecker's Club with a complete 1 of officers. August 5 the internal rev- enue office in Honolulu reported a 100 per cent enrollment of its force in the Loyal Order of Woodpeckers. Septem- ber 20 the customs service in Duluth | Jjoined the honor roll. followed Septem- ber 22 by the Kansas City. Mo.. post | office. Since the announcement of the | Woodpecker Club campaign we have | been reminded by friends that the | woodpecker always works with his head | and tells the world what he is doing. The budget director guarantees th members of the Loyal Order of Wood- | peckers are using their heads in the | interest of constructive retrenchment. 'll'l;: s;x‘;ke'r ds ?h}v;!d of their Joyal orts and glad of the privilege of telling | the world what they are d;gg S Economy a Permanent Policy. Announcements that Federal expend- | itures have been reduced by billians and | that a policy of constructive econoamy has made rich contribution thereto are | N ‘itably by statements that | : The record shows that in 1921 we spent $5.538,209.189.30. In I 3 we spe $3.493.584.519.40. a reduction of §2.044,: 624,609 90 below 1921, which was the last pre-budget year These figures can S be verified from the records. hile people generally are apprecia- tive of what we are doing in the way chment, we occasionally run hose discoursging individuals upon comparing our expendi- ow Wwith what they were before Id War. 1 wonder they do not he Revolution for comparison. ve been great national changes opments since the d 7. A man who [here and d: small coms- New York City. Some months change an acquat er. called upon today to adw Tairs and provide for th uch larger Nation, w d and mare tmport of War veterans, the post-roads program | d Other fmpartant and permanent a ditlons 1o our pre.war needs cost © than $800.000.000 in 1927 this total excludes $787.000.000 for m- ~ | At the Show! The New American Edition of STUDEBAKER'S ERSKINE S\IX Body larger—power l"!m lower *795 b fatry plan | ving a difficult tasz to | the Government an average of | | | Director Lord Make Addresses Before Federal Meeting terest on the debt and 2lso excludes $519,000,000 for debt reduction. “While there will be no siackening in the effort for economy, there is, of course, an irreducible minimum of expenditure below which we cannot go. We may possibly have reached that terminal. country grows and develops. Thz bigger the country the bigger ti o | erating costs. But as long as thers i3 & Federal employe not fully committed to the doctrine of honest service, as long as there is an article of Federal supply wasted or not completely and properly utilized, as long as there is a taxpayer's dollar not profitably emploved, the drive for construetive economy will go on. If we cannot reduce expenditure or cheek its growth, we ean and that every rase 18 amply j and if we are obliged to spend o can and wiil see that more wisely. Put Up to President. | tration of the dously importan: corporation doi firm name of the United | America. Never before in | there been such extraordina: { ment of respo i its intricate deta: ramifications. so mands. We have been 1 sist you in great work. You k: s. to efited al be: the morale and es; 'my of empl never such devot: fare; and r public ser for ple in the service to con- firm your hat the Federal Gov- ernment today is the best e« business in the wo these years of terly leadersh that sense of the pe mark of real ser “The L o And weigh The more we feel the high ste: tured beauty Of plain devotedness to du Steadfast and still, nor paid with mortal praise. But finding amplest recompense For life’s ungarianded In work done squarels : days. " —James Russell Lowell. {WOLL FAVORS PLAN TO AVERT STRIKES American Federation of Labor 0f- ficial Commends American Bar Formula for Amity in Industries. By the Associated Press. American Bar Associstion to prevent strikes and labor controversies has re- the commendstion of Matthew Woll, & vice president of the American | Federation of Labor. “The effart of the Bar Assock he said in a statement, method of encourss: ing peaceful industri collective agreements volu: tered into without applying any power of compulsion. lso proposed in have a wholesome ers and emplo sent to the o If you have sort of an unsatisfied smoke craving, try the York- town Cigarette. We're not raising a wild baliyhoo over the Yorktown, be- cause we believe that this new blend will appeal to a class of smokers not particu- larly influenced by that sort of thing Cigarette enjoy- ment is & matter of taste. On that score alone we ask you to try Yorktown. Twenty for 13¢. /