Evening Star Newspaper, January 29, 1929, Page 6

COOLIDGE LAUDS BUDGET SYSTEN Executive Declares Financial Plan Saved Country From Economic Disaster. ‘The text. of the President’s speech before the semi-annual business meet- ing of the government . last night follows: “The present fiscal year will bring to & close eight years of conducting the finances of the Government of the United States under the budget system. It was put into operation (o save the country from-economic disaster. - It has been fully justified by the results. In the first instance, the President, of: course, is, responsible for the direction of the system. In the second place, that responsibility is shared with the Congress in making appropriations. efficient expenditures rests with the chiefs of the various departments. But in the final analysis success could have been achieved only by the loyal co- operation and faithful service of the | great rank and file of the Government personnel. To that great body, of which you are the representatives, the people owe a debt of gratitude, which I especially wish to acknowledge at this last budget meeting of my administra- | tion. Without their devotion to. the cause of constructive economy we could have done nothing. With it we have been able to do everything. The victory has been their victory, and the praise should be their praise. “When we began the task in June, 1921, of reconstructing our public finances, it looked almost impossible of accomplishment. The entire Govern- ment structure was permeated with ex- travagance. The expenditures for that fiscal year, exclusive of debt reduction, | were about $5,000,000,000. The interest charge alone was more than $1,000,000,- 000, and our outstanding indebtedness was nearly $24,000,000,000. The busi- ness of the country was prostrate. Its different branches of agriculture, com- merce, banking, manufacturing, and transportation ~were suffering from severe depression. Employment was difficult to secure. Wages were declin- ing. Five million people were out of work. The price of securities, even of Government bonds, was very low. It was difficult to find any market for | wmmor:mea&uctonnd;nce in our entire economic_structure had been shaken. Progress had stopped. “It is easy to see what the condition of the people would be under such cir- cumstances. Those who had property, even though it was much diminished in value, could take care of themselves, as they always can.. But to those who were carrying on business with bor- rowed capital and had outstanding notes and mortgages there seemed nothing ahead but ruin. Wage earners and their familles were faced with want and misery. The cause of this distress was mnot difficult to ascertain, The country had been living beyond its means. It had been spending much more than it was earning, which meant that it had been using up its capital. ‘The savings- of previous years were being exhausted, ~principally through Government extravagance. Not a Pleasant Picture. “This was not & pleasant picture to behold. If relief were possible, those Wwho were able to provide it could well afford to be charged with considering nothing but the, K material side of life, with advocat & penurious and cheese-paring policy, and with neglect- ing to supp)g the public needs. If a Temedy could be found, when it was put into operation business would re- vive, profits would increase, employ- ment would be plentiful, wages would be good, the distress of the people would be relieved, and a general con- dition of contentment and prosperity would prevail. Whatever criticisms there might be against those who had labored to secure this result, the satis- factory condition of the country would be a sufficient answer and a sufficient reward. ““The evils and abuses of Government extravagance were perfectly apparent. It was believed, and as experience has demonstrated, correctly believed, that the distress of the country would be relieved if Government extravagance ceased. It was for this purpose that the radical and revolutionary system was adopted of .centralizing in. the President the primary authority for the Tecommendation of all departmental estimates and establishing for his in- formation and advice the Bureau of the Budget. “'Seemingly without effort, but actu- ally by hard and effective work, the change was wrought. Each of the suc- ceeding years brought an ever-increas- ing improvement in the business of government. Expenditures diminished until 1927, when, exclusive of the amount applied to debt reduction, they reached 2 point below the $3,000,000,000 mark. This was $2,000,000,000 below 1921, Blllions were cut from the public debt with a large saving of interest. ‘The first tax reduction came in No- vember, 1921, and was followed by three succeeding reductions. Funds were saved to meet the cost of our much - needed public improvements, ‘which had been in abeyance during the ‘war period. Short-time notes and long- time bonds were paid off and refunded at lower rates. “Working in that spirit which force- fully asserts itself in time of need, the executive and legislative branches of the Government, with the backing of the people, have inserted a golden page | in our history. It fittingly portrays that peace hath its victories no less than war. In the short period of seven and one-half years the public debt has been reduced $6,677,000,000. The total sav- ing in interest alone from this and re- funding operations is $963,000,000. Four reductions in taxes have returned to the people approximately $2,000,000,000 a year, which would have been required had the revenue act of 1918 remained in force. Two and one-half million people have been entirely relieved of all Federal taxation. Departments Welded. “One of the first essentials in the. work of making the Federal Govem-! ment a real business organization was, the welding of the various departments . and independent establishments into a | harmonious, efficient concern. We found | 43 independent departments and estab- lishments, each operating under its own | customs and rules, utterly regardless of the existence of other departments which were parts of the same great es- tablishment—the United States of America. There was little community of thought or harmony of action. Deep- seated hostility between certain Gov- ernment agencies existed. That the National Government ought to be one great entity, responsible for the happ! ness of 120,000,000 of people, was el tirely overlooked in the exclusive dev tion of groups of Federal officials and employes to one particular subordinate department. This same obsession often characterized the relation between bu- reaus in the same department. Heroic effort was needed to substitute national loyalty for department and bureau loyalty. Efficiency and economy in operation were hopeless under such conditions. The situation called for a revolution in the attitude of Government agencies toward each other. Exclusive devotion to their subordinate even through important departments must give place to loyalty to the whole Government. To effect this great trans- ation a wide co-ordinating plan was » §oxm: \!‘( intn effant In | the next place the responsibility for | | increased materially. the various departments and establish- ments were called together and organ- ized into effective committees and boards to simplify and unify procedures unbusinesslike methods. In this way -n“ the major activities of the Government | were studied and harmonized by the cfTects of our own personnel. Out hom" this study and effort sprang a business organization that compares favorably with like establishments in the business | world in efficiency and unified control. Harmonious co-operation has won. “In pre-budgst days not a single | administrative form indicated there | was such a thing as a National Gov- | ernment. The several departments had. | their own business forms in varying | and confusing multiplicity. Today we have 38 Federal forms displacing the many hundreds that served to confuse business and add to the cost of government. Not a single specification contributed to good Governpient’ busi- ness. Today we have 602 standard- ized specifications which cover in large | part the entire field of Federal require- | ments. We are using one uniform Government lease in place of severa!‘ hundreds of departmental leases, while uniform construction andsupply con- tracts in connection with our standard- | ized specifications are contributing | daily to good business and material | saving. i Spread Gospel of Saving “Our great real estate and rental | interests, our hospitalization, our buy- | ing, selling and printing, our patent | interests and office methods are sub- Ject to the same careful study and supervision. Out in the field we have our area co-ordinators and .our 280 Federal business associations, with 63 | more in the making. These unique | Government agencies are spreading | the gospel of efficlent government | economically administered. They are | our most trenchant exponents of co- operation. The intangible savings re- | sulting from this co-ordinating work | mounts into millions yearly. The work | is not spectacular, but it is the very | foundation of good business. I believe | that the Federal Government today is | the best conducted big business in the | world. To these faithful workers fn | our co-ordinating agencies, in Wash- | ington and elsewhere the country owes a great debt of gratitude. This picture of widespread commitment to good government throughout the service— and extravagant government is not good government—is most inspiring and encouraging. We have demon- strated that saving results from efficien- ¢y and efficiency comes from saving. “Largely because of such work as this, less than two years from the time when the lowest point was reached, the country was very genertlly restored to | normal conditions. From that time on there has been an upward swing, broken | only by short static periods or slight temporary recessions. The closing months of 1928 and the opening weeks of 1920 have seen American industry and commerce at the highest point ever attained in time of peace. “In order to understand more clearly | what the effect of these efforts has been on the country, it is only neces- sary to compare some of the major economic factors of 1928 with those of 1921. ‘The output of our factories in- creased during that interval nearly 60 per cent; in some cases, such as iron and steel production, it was more than doubled. The production of the mining industries as a group was at least 50 per cent greater last year than seven years before. The construction of new buildings was much more than twice as great in 1928 as in 1921. The ad- vance was especially notable and grati- fying in the building of homes and schools. Check payments outside of New York City, where the volume is much affected by stock exchange trans- actions, have increased by about 57 per cent over 1921. Rallway traffic has been about one-third greater than in | the earlier year and has been carried on with far greater efficiency and dis- patch. “The number of automobiles regis- tered is now nearly three times as great as at the beginning of 1921, and the number manufactured during 1928 was more than three times as great as during 1921. Electric power produc- tion last year was considerably more than double what it was seven years before. From practically nothing the business of radio broadcasting has be- come enormous, and the number of radio receiving sets produced exceeds 13,000,000. The burdens of our house- wives have been immeasurably lightened and their lives broadened by. the intro- duction of numerous electrical con- veniences and devices, most of which were unknown a few years ago. | | ! | t | Wealth Increases. “The extent that the financial re- Serves of our citizens have increased is strikingly apparent. Savings de- Pposits rose from $16,500,000,000 at the end of the fiscal year 1921 to more than $28,000,000,000 on June 30, 1928 Between 1921 and 1937 the amount of life insurance in force very nearly doubled, and the total of such protec- tion came to exceed $87,000,000,000. The assets of building and loan asso- cigtions have . risen from less than $2,900,000,000 in 1921 to more than $7,178,000,000 in 1927, “The record of the advance in educa- tion in this country during recent years has been truly astonishing. Figures for 1927 and 1928 are not yet available, but in the short period of six years, between 1920 and 1926, the number of students in our high schools, colleges and uni- versities grew from about three to nearly five millions. There has been an im- mense increase in the output of reading matter of all kinds. “With all our increase in production, the numbers of persons employed in several of our major activitles have, apart from the sharp recovery after the depression in 1921, tended to decrease. At present there are fewer persons ef ployed in manufactures, mining, Tail- | way transportation and agriculture than in 1919, and the increase as com- pared with 15 or 20 years ago is de- cidedly less when compared with the total population of the country. This change means the elimination of waste and 15 an evidence of advance in liv- | ing standards. With the constantly rising efficiency and greater production per man the quantity of goods avail- able per capita of the population has It has also been possible to set some workers free to furnish - us . services as « distinguished from commodities—services of distri- bution, automobile travel, . recreation and amusement. By this means the whole number of persons employed has increased. “I do not claim that action by the National Government deserves all the) credit for the rapid restoration of our country’s business from the great de- pression of 1921, or for the steady progress that has since taken place. Unquestionably, however, wise govern- mental policies, and particularly wise economy in Government expenditures with steady reduction of the national {debt, have had a dominant influence. The people gained confidence in them. | selves because of increasing confidence | in their Government. The reduction of taxation made possible by the cutting down of Government, expenditures left more income in the hands of the ' people, enabling them to increase their expenditures, and thereby not only to obtain greater comforts, but to add to | the demand for commodities; it like- wise helped to provide funds for build- ing up the capital of the country and augmenting its productive capacity. Needs Not Neglected. “The public needs have not neglected. We have been able Iab:x::‘ bark upon a building program which for public works, hospitals and our military housing requirements will cost nearly half a billion dollars. We are amortizing the cost, of the adjusted service certificate fund of veterans of | and eliminate tortuous, wasteful, and | been | ployes who have need of relief have | not been neglected. | out 3,267,000 for the benefit of injured | Memorial Bridge that is spanning the THE EVENING STAR. WASHINGTON, TEXT OF PRESIDENT’S SPEECH TELLING OF FINANCES OF U. S. work and improvements made necessary by disasters which have overtaken our | own States and outlying territory. These expenditures could not have financed without an economical administration. We could not have had tax reductions and the added expense of these necessary things without care- ful and orderly management of the business of Government. | “In this period of greatest prosperity the purely business phases of adminis- tration, the interests of commerce and the encouragement of industry have not been permitted to absorb our atten- tlon and mortgage our revenue to the exclusion of the more humane objects and purposes. The duty and privilege of providing for our veterans and em- ; The Employes' Compensation Commission in 1928 paid Government employes, while the ex- penditure for pensions, compensation, insurance and care for the veterans of various wars exceeded in 1928 $600,000,~ 000. In all these fields of need the Government has disbursed with gen- erous hand, and its hospitals and | homes tor its wards thickiy dot the land. In times of great disaster it opened the doors of its Treasury. “On the artistic, altruistic and patri- otic side there has been no parsimonious withholding. The beautiful Arlington Potomac, the preservation and marking of historic spots, the character of the public buildings being erected through- out the counury, eloquently deny the charge that we are only a commercial Nation with no regard for anything but the pursuit of the dollar. During these late years there has been a steady growth of interest in the higher and better things, and I am convinced that the tone and character of the Nation has constantly improved. “We are giving the people better service than ever before. The post office is extending to the people, rich and poor, ever-increasing facilities. The Public Health Service protects us from plague and other evils with a painstaking care heretofore unequaled. In all our lives, sleeping and waking, we are guarded and protected and helped by the Federal Government in more and more ways. This has been done under the restrictions of a policy of drastic economy, which have saved from waste the funds to make increased and better public service possible. You certainly have given abundant reason for being proud of our great Govern- ment. Much Remains to Be Done. “In spite of all these remarkable ac- complishments, much yet remains to be done. We still have an enormous public debt of over $17.000,000,000. In spite of all our efforts for economy, our great savings in interest, and our four reduc- tions in taxes, the expenses of the Fed- eral Government during the last year are showing a tendency to increase. While much has been done in reducing the costs, by far the largest item of credit is due for preventing increased expenditures. A short time ago there were pending before the Congress, and seriously being advocated, bills which would have doubled our annual cost of Government. At the present time com- mittees have reported, and there are on the calendar in the Congress, bills which would cost more than a billion dollars. Had there not been a constant insistence upon a policy of rigid econ- omy, many of these bills would have be- come law. “It would be a great mistake to sup. pose that we can continue our national prosperity, with the attendant blessings which it confers upon the people, unless we continue to insist upon con- structive economy in government. The margin between prosperity and depres- sion is always very small. A decrease of less than 10 per cent in the income of the Nation would produce & deficit in our pr]esenlz budget.. ’fl: costs olr_‘ mt; and local _governmen % Thounting. From $3.900,000,000' i 1921 the National +'» Gofilerence Board estimates: that - iliey Teached $7,931,000,000 in 1927, ‘This is such & heavy on. the earnings of the people that it is the greatest menace to the continuance of prosperity, It is. & red flag: warning us of the danger:of depression and -a repetition of the disaster ‘which ‘overtook the .country: in the closing days of 1920. It is a warn- ing that should. be heeded by every one intrusted with the expenditure or ap- propriation: of public funds. It is the 1eason that further commitments by the national: Government for any new projects not. absolutely. necessary should be faithtully resisted. “The results of economy which have méant so much to our own country, and indirectly to the world, could not have been: sticcessful without the Bureau of thé Budget, It has been able in eight years 1o rediice estimates by $2,614,000,- 006. The ability with which that bu- reau has becn managed is due to its director. Since I have been President it ‘has been under Gen. Lord. In all our: meetings I have spoken of him in terms-of commendation. He has con- tinued to justity all I have. ever said in his praise. - I wish to take this last opportunity which I shall have during my administration publicly t6 express to him -again my appreciation of the high character of his work and my in- creasing’ confidence in the budget sys- tem. No friend of sound Government will ever consent to see it weakened. No one who admires fidelity and character in the }wbllc sexrvice will ever fail to be grateful for the services of Gen. Lord, who will now address you. GEN. LORD DECLARES ECONOMY IS KEYNOTE IN BUSINESS ADDRESS The text of Gen. Lord's speech before the semi-annual business meeting of the Government last night follows: “Some years ago Peter Cornelius, a more or less well known musician, composed & musical number called “Ein Ton” or “One Tone.” One note domi- nates the entire composition. Measure follows measure, chord succeeds chord in rich and varying harmony, but that persistent, new§r-changing note marches on, commanding the musical unfold- ment. It is always there, insistently asserting itself. The' pleasing har- monies, the musical variations, the changing phases of this unusual num- ber are artistically woven in and around that ever - appealing, _ever - insistent, never-varying, never-silent note. Any departure from that commanding tone not in accord with the law of harmony would yield an unmusical dissonance to mar the beauty and perfection of the compesition and discordantly interfere with the enjoyment afforded the listener. “Twice each year for eight years we have met in friendly conference to dis- cuss the Nation's business. These con- ferences have all been “One Tone” gatherings. Their dominant note has always been “economy.” No matter what the subject discussed, the keynote has always been the same—"economy" —with its inseparable comrade and companion, “efficiency.” Our efforts to make effective this never-changing note of constructive economy, our endeavor to achieve harmonious and worthwhile D. C, TUESDAY, than perfunctory assistance from serv- ice people. Hearty, whole-souled co- operation was necessary. That kind of co-operation we have had. It is because of this attitude on the part of our personnel, because of their interest in better administration, that so few false notes, so few discordant blahs, have marred the harmonious full-toned chords of accomplishment, woven in and about that dominating, never- ceasing note of “‘economy.” Budget System Broad. “We have a great deal to say about the budget system—possibly too much. I wish, however, to emphasize the fact that the budget organization comprises not only the President, the Budget Bu- reau, the budget officers of the various departments and establishments, the chief co-ordinator, our splendid co- ordinating boards, the area co-ordinat- ors and the 280 Federal business asso- ciations, but includes every person in the Federal service. When we speak of budget achievements we are voicing the accomplishments of the people in the Federal service and the Congress that in its wisdom gave us our budget system. “The man of the house arrived home | from militia drill and pridefully in-| formed the members of his family that | he had been appointed corporal. | *‘Are we corporals, too?’ eagerly asked | the children. * ‘No, no, children,’ replied the mother of the family, ‘only me and your pa.’ “But not so in this successful fight | against waste, indifference and inef- ficiency, for we are all corporals and en- titled to wear the chevrons of honor- able budget service, “The Federal budget system is no longer an experiment. It is not strange that its entry into Government opera- tion was regarded with misgivings by administrators, who, through years of service, had experienced little control | over their estimates and less control | over their expenditures. It, however, | has come to stay. Chief Executives, cabinet officers, budget directors, bureau chiefs will continue to ph{m their Sl b ael s o 'so evident that it has. tfi fixed ‘policy of the Government z h the policy is carried out, the methods of the budget bureau, may be legitimate objects of criticism, but the system fitself defles attack. And -the attitude today of the people in the sery- ‘ice leads one to think that they believe in jt and approve of it.. It.is possible, however, in some cases, that this atti- tude may be one of resignation. Said one friend to another: “‘I understand your daughter is tak- ing plano lessons. What progress is she making?* “ ‘Improving, I think,’ was the answer, ;%nil':e‘r that or we are getting more used Comparisons Made. “In budget discussions, heretofore, we have made our comparisons with the year 1921. That was the last year free from budget control. The total expendi- ture for that year, exclusive of debt reduction and postal expenses, was $5,- 115,927,689.30. In 1927—six years later and six budget years—that extraordi- nary outgo had been battered down to $2,974,029,674.62. This gave us a re- duction of $2,141.898,014.68 in six years. The figures I have given, which have been challenged, are exact—taken from the records even to the last strag- gling penny—and I think can be understood even by the schoolboy who' sald he had no difficulty - with. algebra and geometry, but couldn’t understand mathematics. “That year—1927—was also dis- tinguished ‘as the year of largest sur- Dlus—$635,809,921.70, which you may Tecall we applied to the debt, saving th.euby $25,000,000 in annua! interest. “That 1927 figure of $2,074,029,674.62 is the lowest expenditure level this gov- ernment will ever see. The country is growing, expanding, developing giori- ously. Its ulation is increasing— 105,000,000 1920 and 120,000,000 in 1928. You can't run a modern ‘mogul locomotive for the money that was suf- ficlent to maintain and operate an old- style wood-burning engine. When legiti- mate operating expenses fail to show development and growth it will be evi- dence that something is radically wrong with the republic. i now on we can look for steady increase in necessary national expendi- tures. This, however, does not change budget policy nor weaken the demand for the strictest economy in federal operations. Rather that demand is strengthened. With the growth of the country new important projects will present themselves, calling for more money from the Treasury, and no mat- ter how great the revenues, unless they are courageously controlled and wise- ly directed into channels of useful and necessary purposes, burdensome addi- tional taxes, or inability to carry on necessary constructive work, will result. Certainly we contemplate no such pos- sibility. “And the year 1927, with its record of ‘smallest ~ expenditure and biggest surplus, forms the new starting point for budget operations. From now on, Instead of striving each year to reduce expenses below the preceding year, we enter upon a new and equally important duty to see that advancing costs are reflected in necessary development and constructive progress. Supreme Fight in 1929. “Expenditures in 1928 exceeded the 1927 record by $149,935,355.73. This results have, I am sure, been more suc- cessful than the atiempt of the colored brother to entice music from his saxo- phone. A friend asked him how he was getting on with his saxophone. “‘Porely, Porely! was the dis- couraged reply. ‘Ah blows into that instrument the sweetest noises you all evah hcard, but de mos' awful of a blah comes out of de otha end.’ “In our campaign for constructive economy the aim has always been to plead for the obvious, possible and t. ‘The-manner | was almost .entirely due to new legis- lation providing for new projects of great national importance. We man- aged, however, with the ald of a $50,- 000,000 reduction in interest, to end the year with a surplus of $398,828,- 281.06. Of this amount $367,358,710.12 was applied to the debt with an annual interest saving of $14,000,000. “The current year thus far has not been a happy one for the budget organ- ization. An or estimated surplus of $252,540,283 was by new legislation, reasonable thing, to urge policies that would appeal to Federal administrators as sound and workable. We have tried to show our fellow-workers that what the, World War. and the retirement funds of our civil establishment at a cost of $132,000,000 a year. Additional Pannesenintives -fram funds.are being fevaled to flood control cessful we must we wanted them'to do was what they should do. If oug efforts for retrench- ment and efficiency were to be suc- ve something more including tax reduction, transformed in- to a threatened deficit of $94,000,000. At the last meeting of this organiza- tion in June the President called at- tention to this radical change in pros- pects, stated that he nevertheless con- templated no deficit at the end of the year, and called his executives and ad- ministrators into action, to work an- other transformation—to convert that $94,000,000 indicated deficit into an as- sured surplus. By his direction the ex- penditure program for the year was radically modified. The pruning knife fell here and there and everywhere in the grim fight for a balanced budget. | Proposed expenditures of doubtful im- mediate necessity went under the guillo- tine. Every year since the installation of the budget system has been a fight- ing year, but this year we are making the supreme fight of our history. “A man and his wife were brought before the judge for disturbing the peace. In response to the judge's in- quiry the man explained: “‘It was this-a-way, Jedge. Me and the wife was quarreling over the wash money. She called me a lazy loafer and hit me over the head with a kittle. I knocks her down. Up she comes and knu:ks me down and kicks me in the neck.’” “‘Well, what then? asked the judge. “‘Well, then we gets mad and starts to fight.” “And we have started to fight. We have not had a deficit since the inaug- uration of the Budget. We think it too late to begin now. We realize the seriousness of the deficit threat, and are calling out all our reserves to meet it. If we fail and June 30 finds the balance on the wrong side of the Treas- ury ledger we propose that the Federal service be able to say with clear con- science— “‘We made an honest fight for a balanced budget, we husbanded our supplies, we conserved our funds, we made every endeavor to increase our receipts and reduce our expenditures, we have done all we could. Devotion of Personnel. “One of the greatest assets of this great Government is the devotion of its personnel to the Federal service and their whole-hearted commitment to the particular projects with which they are charged. It is therefore a radical inistrators. and ask. them modify theiz plans for the & aving ‘money ‘with which the National budget. The quite gen: eral ready and sympathetic response’ to the President's appeal emphasizes the splendid morale of the service and shows its realization that the imper- tance of a balanced budget outweighs the importance of their especial proj- ects. “One able Federal administrator who disburses millions was greatly concern- ed when it was suggested that he re- duce his spending program by & con- siderable amount. Said he: ‘If I re- duce my expenditures by that amount it will seriously interfere with my plans. What am I going to do?” He was told the story of the woman on an Atlantic steamship. The $ea got a little rough, and she sent for the color- ed steward. “‘What am I going to do if I am taken sick?' she asked. “Said the steward: ‘Lady, it's no use telling you what you'se goin' to do if you'se taken sick. You'se going’ to do it anyhow.’ “The money'is being saved! “As & result of this drastic action and an improvement in the revenue outlook, the budget for 1930 as sub- mitted to Congress showed a ible surplus for the current year of $36,- 990,192. And while the flush of victory still mantled our cheeks unexpected and unheralded demands rudely wiped out our $37,000,000 surplus and put in its place an apparent deficit of about the same amount. But we are stil fighting. Federal Casualty Club. “We haven't organized a new service club since the advent of the much dis- cussed Woodpecker Club. The time is ripe and need urgent for the installation of & new saving organization, and so I present for your approval the Federal Casualty Club. To acquire membership you will from now on up to and includ- ing June 30 next, let all vacancies re- main unfilled, thereby contributing to- ward a balanced budget the far from negligible sum of $12,500,000. This does not contemplate the withholding of pro- motions. It directs itself only to the filling of vacancies by new appoint- ments. ““‘rhe Bureau of the Budget makes first application for membership. “And I am confident this can be done without much trouble or sacrifice. You should take for your model the mem- ber of the country band which was re- turning on a midnight train from a celebration in a neighboring town. The train conductor asked one of the some- what inebriated members of the organ- ization for his ticket. The man said he had lost it. The conductor sald: “‘Oh. no, my man, you couldn’t do that. You couldn’t lose your ticket.’ “‘I couldn't lose my ticket?' replied the man, in an aggrieved tone of voice: ‘I've lost the bass drum.’ “You have accomplished much more difficult things than the one you are now asked to do—to save us that $12,500,000. Cut on Estimates. “The estimates sent to Congress for 1930 call for $280,777,617.33 less than the departments originally asked. Cuts in estimates made by the Budget Bureau during the entire budget period—reduc- tlons made by direction of the President before submission to Congress—totaled $1,961,681,076.49. This, however, does not tell the whole story, for budget boards organized in the various depart- ments take their toll before the esti- mates are sent to the Budget Bureau. The Treasury Department Budget Board, for example, reduced estimates by $61,- 325.085.54, while the War Department authorities shaved $590,560,046 from estimates before sending them to the Bureau of the Budget. Exclusive of re- ductions made by other budget boards, we have a total reduction under budget procedure of $2,613,766,207.54. These major operations were not performed without protests and prophecies of dire calamity as a result of such reductions. But the disasters and fatalitics predict~d have not materialized, and we have to- day a more efficient organization than ever before. Many plants thrive with % JANUARY 29, 1929, President: Coolidge Iast night, at the semi-annual business meeting of the Government in Memorial Continental Hall, delivered his final address on the budget. The President and members of the cabinet photographed on the stage. —Associated Press Photo. pruning, and the Federal plant seems to be one of them. “The estimates for 1930 show a pos- sible surplus of $60,576,182. This result is reached without figuring into the equation pending legislation and pos- sible court action that may add millions « our expenditures and seriously threat- en that narrow safety margin of $60,- 000,000. Facing these conditions, the President stated that no estimates would meet with his approval that would con- tribute to a deficit in 1930. Appeals for funds must be confined to purposes of such supreme importance and urgency as would obviously warrant the risk of jeopardizing the 1930 baknce. From a budget standpoint no other course is possible, and supplemental estimates are having a hard time. Proponents of thes> supplementals urge that their needs, as voiced in their estimates, meet in full these requirements of importance and urgency. “The members of a certain denomina- tion decided to remodel the church. Ap- peal was made to one of the members to contribute toward the building fund. H2 demurred, saying he owed a great deal of money to various people in the tow: and could not afford to contribute. ‘Don’t you owe the Lord something?’ asked one of the soliciting committez. “‘Yes; I s'pose I do,” was the frank repl: ‘but He ain't pressing me like these others are.’ “We try in reviewing estimates to de- cide on the merits of each case and no* allow ourselves to be convinced by the eloquence shown or the pressure applied by the advocates of particular projects. Some of the Federal representatives are gifted above others in the advocacy of their wants. It is the duty of the Bud- get Bureau to see that priority of merit 1s recognized irrespective of the strength or weakness of the presentation. The Nation’s Debt. “We still have a national debt. While we are committeed to its reduction a final extinction we will miss it in a way when it is zun: for nls;mda as & cm‘r;‘ stant, -eloquent appeal for r . Its consistent ngethn sa large way of the effestive- B emen, Bt ‘proportions is & tribute to thrift in Gov- ernmen t, “The books of the Treasury A b 31, 1919, showed a gross national debt of $26,596,701,648.01. By application of the various surpluses of the years of 1920 to 1928, amounting to $3,091,000.- 000, through the operations of the cum- ulative sinking fund act, by foreign pay- ments, the brilliant refunding operations of the Treasury Department and other factors, on June 30 last that crushing total was reduced to $17,604,293,201.43. This gave us an actual reduction in a little less than nine yuel; o&u.on«:&: 446.58—an average reduction ovel period of nine years of $1,000,000,000 a year. Could anything be more elo- quent of the stability of our great Gov- ernment and the wisdom that has gov- erned its administration! “We are committed to the important task of bringing that debt balance down to $15,000,000,000 in three years. From July 1 to December 31 last, the debt was reduced by $290,000,000 which means an annual saving of $11,000,000 in interest. “The more I ‘ae:hof our [r;n ‘Treas- ury rtment the more I am m’e&sequ:lth the punctilious care with which it watches over even penniés and fractions of pennies. This same great care governs all its procedures, which are never modified until every last shadow of doubt as to the wisdom of such modification is removed. I read of the clerk of a Western town who might well have served an apprentice- ship in' the Treasury Department. was noted for the accuracy and com- pleteness of his records. One evening while the town council was in session an emmg:h rudely shook the town- house. council abandoned the shaking building in fear and haste. The clerk, however, remained, and true to form closed the record of the session with these words, ‘On motion of the townhouse the council adjourned.” Treasury Metlods Safe. “While we may in this facetious way speak of the Treasury and its devotlon to established procedures, we must admit that its methods are safe and sound. During the World War While we were concerned as to the draft, worried about the construction of can- tonments, troubled regarding supplies, and fearful about transportation, we |D: never gave anxious thought to the Treasury. Facing financial demands of a magnitude never before known, con- fronted with financial problems of the most extraordinary character, it stood like & Gibraltar, weathering every storm. Al honor to those worthies who through the years have so ably carried on this great activity, and on the roll of honor we give high place to those who through the World War and since have so admirably administered its great interests. “There are hundreds of live, active organizations, created for the pu of getting money out of the Federal Treasury. The Budget Bureau is an organization created and set apart by Congress for the defense of the Treas- ury. In the fight for protection of the taxpayers' money we meet always well organized, amply financed opposition. ‘The budget director, as the President's representative, is almost overvhelmed at times with floods of letters, tele- personal appeals and pressure of various kinds for favorable recom- mendation to the President for funds from the Treasury for pu which he, with his impartial view of the entire fleld of Federal operation, knows should not be approved. If ever the budget is set aside through the efforts of its enemies, and they are many, scme one should tell to the beneficiaries of the budget, whose name is legion, the story of the colored worker in a South- ern cotton fleld on a sweltering day in August, who, pointing an accusing finger at the sun blazing in scorching splendor overhead, asked complainingly, ‘Where was you last January, when I needed you so bad?” “In June, 1927, the Loyal Order of ‘Woodpeckers was organized in ths Fed- | eral service to give thousands of Federal workers a definite placz in the cam- paign for thrift, To become a membeg 1a saving of at least $1 a year must be |made. With 568,715 employes there | could be effected a saving of more than | |a half-million dollars a year, and that | | seemed worth trying. Of course, the | more important purpose was the devel- | opment of the spirit of conservation of | Government money, time and supplies. ‘The proposal met with loyal response | from the service. Idea Is Contagious. “That this Woodpecker idea is con- tagious is shown by a letter from a citizen of Waco, Tex., who learned of the project over the radio from this auditorium. He asked for more detadls, saying he planned to organize one of the clubs in the plant where he is em- | ployed. I quote from his letter: | | *“‘As business is rather poor just now | and expenses rather high, it seems to be | | necessary to assist my company in | | every way possible to cut the cost and | increase production, and in so doing I | realize we shall all benefit." | “Fortunate the business that has | men of this type on its pay roll. “T have an illustration for the especial benefit of those critics who can see in a budget report a few cents saved on pencils, which they ridicule, and fail to notice a saving in that same report of $384,000,000 under our general reserve | poliey. “The Interior Department circularized its employes urging them to enlist in the Woodpecker Club and pledge them- selves to make a specific saving during the year of at least $1. I read from a letter send to the district superin- tendent by a clerk at an Indian agency in Oklahoma. The letter was a re- sponse to the department circular: “‘From_the appropriation for lights and fuel I have saved at least §1 * * * by sitting by the open fire in the eve- ning with the lights turned out except when reading. * * * Through an open window my kitchen light shines into a mirror on my bathroom wall, which in turn reflects the light onto the white wall opposite and illuminates the entire bathroom.’ “And you smile. I did when I first read it. Then I pictured that lone Federal worker, on an Indian reserva- tion, in far-distant Oklahoma, with little opportunity to save, studying to make his contribution to Federal econ- omy and efficiency. And I smiled no longer. Spanning the prairies, crossing the rivers, and singing its way across the great open spaces, that subdued but penetrating note of economy that pulses through every phase of Federal activity, sounding clear and full in the remotest parts of the globe wherever the flag fiies, found a responsive echo in the thought and consciousness of this loyal worker at one of the Nation's outposts. “‘Through an open window my | kitchen light shines into a mirror on | my bathroom wall, which in.turn re- | flects the light onto the white wall op- | | posite and illuminates the entiré bath- | f room.” Men of Crusading Spirit. “Fortunate the Government that has | men of that type on its pay roll. If| that crusading spirit could possess the entire service, what a staggering record of saving we could make. Thank God there’s no degree of merit in honest service. The charwoman who con- serves Federal soap at the expense of her elbow in the interest of saving is entitled to the same medal for service as he who saves millions. “Mr. President, at the Federal busi- ness meeting held in this hall June 30, 1924, you made this declaration: “‘I am for economy. After that I am_for more economy. At this time and under present conditions that is my conception of serving all the people.” “Here Is the inspiration of our great thrift crusade—not merely to save money, but to save people. We had to_substitute ‘to save’ for ‘to 3 seemed a dreary, drab vital- ,,““‘.M,. e ki, But, you, Mr. President, mw gave. it human interest. From & m%-m of the most intense thing, economy personal ple in the service, byt to the people of the country who gave to your policy of miracle was wrought in the minds of the many, and thrift became more nearly than ever before the habit of the Nation. As a result of the policy, taxes ‘were n%ucet'lm olrrtxd ;ometthir;z more of hnpenn €O and content- ment brought into the homes of the people. Joaquin Miller has a new and 1 believe truer conception of that often misapplied word ‘! 5 ““The hero we love in this land today Is the hero who lightens some fel- low man's load— Who makes of the mountain some \pleasant highway, som-sown “This you have done, Mr. President. The interest of the taxpayer and the well-being and happiness of more than 120,000,000 of people are .inseparably bound up in this policy of saving. Thrift has won for itself permanent and prominent place in Federal admin- istration. To you the everlasting ple of the country, and to you the respect and appreciation of the Federal service.” iimeiorla MOUNTING EXPENSE DESCRIBED AS “RED FLAG” BY COOLIDGE (Continued From First Page.) Coolidge declared that much remained to be done. In spite of determined efforts for economy, savings in interest due to reduction of the national debt and four reductions in taxes, he said, Government expenditures are showing & tendency to increase. Bills pending in Congress a short time ago, he esti- mated, would have doubled the annual national outlay, while measures are now on the congressional calendars, ap- proved by committees, which would, if assed, cost the Government more than a billion dollars. But for a policy of rigid economy, he said, many of these would have become law. Constructive Economy Vital. “It would be a great mistake to sup- pose that we can continue our national prosperity,” the President continued, “with the attendant blessings which it During the day tele JEWELERS Thirty-siz 935 F 1 interest, not only to the peo- | saving their enthusiastic approval. A/ ‘Who makes of the desert some blog- | credit, to you the gratitude of the peo- | confers upon the people; unless we con- tinue to. insist upon | constructive economy in Government. The margin between prosperity and depression is always very small. A decrease of less than 10 per cent in the income of the Nation would produce a deficit in our present_budget.” Mr. Coolidge outlined the conditions he said had been prevalent when the budget system was instituted, enumerat- ing depression in business, declining wages, unemployment, lack of markets, and the low price of securities, includ- ing Government bonds. The country, he continued, had been living beyond its means, spending much more than it was earning, using up its capital, and the savings of previous years were being ex- hausted, principally through Govern- ment extravagance. As a means of bettering conditions, and curtailing national expenditures, he sald, the bud- get system was adopted. ‘While not claiming “that action by the national Government deserves all the credit for the rapid restoration of the country's business from the great depression of 1921 or for the steady progress that has since taken place”™ the President declared that “unquestion- ably, however, wise governmental policies, and particularly wise economy in Government expenditures with & steady reduction of the national debt, tlons. The whole program was broad- Cabinet Members Present. President Coolidge on the occasion of his last appearance at such a function was honored by attendance of all mem- bers of his cabinet, who flanked him on either side on the front row. Vice Presi- dent Charles G. Dawes, the first, director of the budget, and a large number of heads of independent establishments, including Frank T. Hines, director of the Veterans' Bureau, were present on the platform. A photograph was taken of the assemblage. - Although President Coolidge in his address made several references to the fact that this was his last appearance as President before the business meeting of the Government, such reference was absent in Gen. Lord’s address. It is known that he would be willing to con- tinue in the same post under President Hoover, and reporis yesterday that he would probably be reappointed gained strength from the fact that the general made no reference to retiring. 3" the latest addition to the English alphabet, did not come into general use in English books until the middle of the seventeenth century. The dot remains as a witness | the letter was developed out of th GOODMAN Our experienced judgment is a feature of Goodman Serv- ice. PHONE us for what you want, in beef, lamb, veal, pork, poultry, Partridge Brand hams, Jones' Farm little pig sausage, etc., and then trust the selec~ tion to us, arid you'll never be disappointed. We're specialists —and know. 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