Evening Star Newspaper, June 14, 1929, Page 5

BUDGET SYSTEM 'HELD ECONOMY AD [Effect of Plan on Taxes and Public Debt Are Discussed. II—THE BUDGET SYSTEM. BY FREDERIC J. HASKIN. Tt was on June 10, 1921, that Con- passed the act creating the Bu- Teau of the Budget, placing it in the ury, under the general supervision | f Secretary Mellon and the direct con- | of Gen. Charles G. Dawes, later | b | I 3 | | been seriously retarded; indeed, a com- ! \Vice President of the United States. rhe dramatic fashion in which Gen Dawes held the first business meeting the United States will remain long the memory of Treasury and other cials. Standing before his audience, told of the necessity to make a clean | Bweep of wasteful practices and empha- | d_his remarks by wielding a brand- ew broom. Under the joint direction of Sec- tary Mellon and Gen, Dawes, the fgeneral supply committee, in charge of yarthages for the Government agencles, a3 re-organized both at Washington and in the fleld. Co-ordinators were Bppointed and every expenditure was | finance and business look for leader- rutinised with all the skill which it as podsible to bring to the task. No | Bopropriation was too large to be over- bauled by the Bureau of the Budget ho item- too small. All Government | property, from large buildings and | tracts of land, to pens and pins, Was handled with a single eye to effecting savings. If the Bureau of Budget ithought that too much rent was being | paid for post office quarters in some | eity or town, cheaper quarters were btained as soon as leases expired. It was possible for the Budget Bureau 8o supervise practically every expendi- ture of the Government because the Plreasury is the national paymaster. Heads of the executive departments and Independent establishments were called dnto a close co-operation never before ®qualed or contemplated. Budget Cut $18,336,847. ‘While the work of the Budget Burea: jextended into every department, the | Treasury itself was made a special ex- /mmple. As an indication of the type of ‘work done, the budget experts, after studying the estimates submitted for the fiscal vear, 1924, by the various ‘Treasury bureaus and offices, revised |them in accordance with the new policy and cut $18,336,647 from the total. By « |an extension of this method to all of }t-he Government activities hundreds of illions were saved to the taxpayers. | Nor can it be forgotten that the re-| quirements of the Government were | fhuge at this period. As an example of extra expenses produced by the war, the Veterans' Bureau had 44 great hos- (pitals to operate and maintain, and here were heavy payments to disabled |Weterans and their dependents, _The institution named by Gen. Dawes, ‘the business meeting of the Govern- |ment,” became a regular semi-annual | event, being held about the middle of |January and the latter part of June. ‘The President always attended and ad- |dressed the assembled heads of depart }menu. bureaus, commissions and in- dependent establishments. Unremitting- {ly the President, Secretary Mellon and the Director of the Budget hammered |away at the policy of economy. It is interesting to note that at the January, 1929, business meeting, Presi- dent Coolidge, making his final appear- ance before that gathering, dec?uared |that the policy of parsimony in govern- iment expenditures had been wholly jus- |tifled. He went so far as to declare that ‘the policy had “saved the cduntry from economic disaster.” He pointed out that the rigid economies had ‘made possible reduction of the public debt by bil- lions with the result that $963,000,000 in interest had been saved. Further, no | less than $2,000,000,000 had been left in the hands of the people which oth- erwise would have been collected in taxes. Two and a half million people had been entirely relieved from paying |any income tax at all. Economy Policy Unpopular. Needless to say this drastic poilcy of !economy was very unpopular with many |persons. Supernumerary employes Tound themselves out of jobs, and offi- |cfals found their special budgets for odds and ends cut down. Mr. Mellon 'and the President were put in the posi- jtion of Old Mother Hubbards, and other Government officials felt rather like {the poor dogs who suffered from the bare cupboard. This does not mean |that Mr. Mellon was not given remark- ‘l/blr co-operation in his program by offi- |cials generally, but nevertheless fat ap- | propriations which have become a habit |are difficult to forego. | President Coolidge recognized this state of affairs in his valedictory ad- |dress to the last business meeting. He ‘declfired: “If relief was to be possible those able to provide it could well af- |ford to be charged with considering ’nathinl but the material side of life, with advocating a penurious and cheese- paring policy, and with neglecting to \supply the public needs. | “Whatever criticism there might be against those who had labored to se- | cure this result, the satisfactory con- | dition of the country would be a suf | ficlent answer and a sufficient reward The results became increasingly plain | as each year saw a surplus of funds in | the Treasury, each year saw & diminu- | tion of the public debt, and nearly every year a reduction in Federal taxes. Both 1920 and 1921 were years of business depression, but the necessities of the Government remained at a high level. omy was all that prevented the neces- sity of further bond issues. Just how This policy of the utmost econ- | fiotations would have failed. To borrow | more money would have had a bad in- fluence. It is quite probable that a large addition to the public debt would have had the effect of further jpwering | to points below par the bonds of the | war issues. New borrowing would have added to the interest charge to be an- nually borne by the Treasury. Decline of Debt Steady. In this tight situation, Secretary Mel- lon s0 conducted the finances that there was not only no increase in the public | debt, but a steady decline. As short- | term certificate of indebtedness fell | due, new issues would be offered to re- | fund them, but an effort was made at the time of each such operation to borrow less, so that there was a grad- ual diminuation of the total debt. It will be recognized that if the Treasury had been ill managed in these emergency years, general recovery from ! the business depression would have | plete disaster, with accompanying panic | and vast economic_losses, could easily | have occurred. Insolvency of thi Treasury would have frightened indus try and trade generally. ~Ameri ship to the Treasury. With 50 huge a | total of Government obligations out- standing, any extensive fall in their | value as’security for loans would have | been vitally serious. Sufficient skill was put into the man- | agement of Treasury finance to bring Liberty bonds up to and above par, to bring down the interest cost to the Treasury, and to reduce taxes and re- { tire debt. This could have no other effect than to release money and credit, and relax the strain which had every- where been felt. Trade and industry responded amazingly and, in proof of the Mellon taxation theory, taxes flowed into the Treasury in satisfactory volume. | The policy of economy in expenditures was not allowed to slacken. In the fiscal year ending June 30, 1928, as the esult "of all these policies and opera- tions, the public debt was reduced by | $905,883.703, and what is especially re- markable is that $365,637.682 of this | huge sum was paid off out of the sur- | plus of receipts over expenditures due to economy and large collections of revenue—even at the lowered rates. (Tomorrow: The Allled Debts.) FLAG EXERCISES HELD AT BETSY ROSS HOUSE Philadelphians Also Mark Annual Day at Independence Hall, ‘Where Hundreds Gather. By the Associated Press. PHILADELPHIA, June 14—The quaint but revered little “Betsy Ross House,” birthplace of the American flag, furnished the setting for Flag day ceremonies here today. Independence Hall also was a mecca for hundreds who gathered to honor the flag. Daugh- ters of the G. A. R, the American Legion, Veterans of the American Rev- olution, Colonial Dames and members of other organizations participated in the exercises, which included parades, concerts and speeches. i Scotland Yard has suggested a gen- eral speed limit of 35 miles an hour for automobiles, with 20 miles in certain zones, in England and Wales. t Strongly Made. Heavy i $]95) GROGAN'S '817-823 Seventh St.N.W. Homefurnishers Since 1866 Fine Radio Sets Bea S, St 75,00 1—7-Tube Kol- s] zs.w $120.00 $110.00 $125.00 ( $15.00 (o iy Y 2 §20.00 eSS 1850 1—7-Tube Bal . 515.00 1—Atwater Kent Electrie Set, complete ....... 1—Direct Cur- 1—6-Tube Atwater Set (set only)... Come Early for these Bargains| Battery Sets Cash Only Harry C. Grove, Inc. rent Set, com- 523 11th St. well bonds would have sold is difficult to guess, but with business depressed it is quite possible that any substantial NON-CRUSH SumMmer CLOTHES for well-dressed men U.S.PAT.OFF. _ e I e = I e N S R e == THE EVENING STAR, WASHINGTON, D. C. are 10 cents cash or four tokens for 30 cents, an increase of two cents in the cash fare and five-sixth of one cent in the token rate. Belleves Decision Wrong. Mr. Clayton said today that the com- pany was doing the wrong thing from its own viewpoint in seeking increased fare at this time. “They say that they are not making a sufficient return upon their valuation,” he said, “and there- fore, ask for higher fares. But higher fares will in-the end mean even lcss { money. Each time the fare is put up | more people desert the cars and buy their own automobiles or walk.” The petition will come before the Public Utilities Commission at the Jat- | ter's meell{ng at 10 A special meeting of ihe Federation | Members of the commiss 1 of CHmeny A s will be called | they would grant the company's re- CITIZENS TO TAKE UP INGREASED FARE Federation Will Consider Ac-| tion on Proposal at Special Session. |10 consider what action the federation | quest for a public hearing at the ear- should take on the petition filed by the |liest practicable date. Capital Traction C:c yesterday for an | While the lines of battle between the increase in carfare. The federation has | gederntxon and the company have not no more regular meetings until the first | been drawn yet, the expected contest Saturday in October. Dr. George C.|is over the question of whether an en- Havenner, president of the federation, | tirely new valuation should be had be- said today that he would confer with |fore any change is made in the rate william McK. Clayton, chairman of |of fare. The federation spokesmen are the federation's committee on puhllclexpecled to insist on a new valuation. utllities, to arrange a date for the meet- | Should they be successful, a valuation ing. The federation’s fight against | proceeding would delay any change in higher fares was one of the main fac- | rate at least a vear, while the valua- | tors in delaying action on the company's | tion was being made. Willlam F. Ham, president of the Washington Rallway & Electric Co., We request when it was presented last year The new fares asked by the company. WE PAY SPEND LESS Than Your Earnings have financed Put the difference in a savings account with us and build up an estate for the future. As little as one dollar will start you on the road to independence. 5 City of Homes” o OR MORE on your Open daily 9 to 5 Saturday wntil noon NATIONAL PERMANENT BUILDING ASSOCIATION (ORGANIZED 1890) 949 Ninth Street N.W. Just Below New York Avenue Under Supervision U. 8. Treasury Edmonston & Co. INCORPORATED No Braneh Stores Carl M. Betr, Mer. 612 13th St. Between ¥ & G Sts. SHELF-CLEARANCE SALE OF FOOTWEAR Now in Full Swing! Savings All shoes — Men’'s, Women's, Children’s— except Physical Culture Shoes for Women and Stacy-Adams Shoes for Men. _REDUCED | 15% < 85 Shoes . ..$6.80 $12.50 Shoes .$10.63 % 9.00 Shoes . ..$7.65 $13.00 Shoes. . $11.05 }0.00 Shoes .. $8.50 §13.50 Shoes. . $11.48 1 P ¥ 1.00 Shoes . .$9.35 $14.00 Shoes. .$11.90 1.50 Shoes . .$9.78 $14.50 Shoes. . $12.33 12.00 Shoes. . $10.20 $15.00 Shoes. . $12.75 Edmonston’sTa, No Branch Stores CARL M. BETZ, Mgr. 612 13th Street gVeu Side— l——|a|—[on|—[a]— ] $ $ $ $ $ $ SATETY At any speed, in any weather, on any road, you're always SAFE on HOODS ., . . and you never pause for any cause. ; We allow liberally for unused'miles in present tires . . . trade them in today for SAFE HOODS. MARTIN J. BARRY lale———]alc——]a[c———=]o|c———|o[=[o]———[o[——0] FRIDAY JUNE T4, 7Y929. sald today that it had not been decided whether the company would ask the commission t6 make any increase granted uniform on all street car lines in the District or whether his company would wait untfl it is formally made a p arty to the case as requested in the Capital Traction Co.'s petition. This is & matter, he said, which mus be decided by the board of directors, and they would probably take it under consideration soon. “In any case,” Mr. Ham said, “it is our position that car fare in Washing- ton should be uriform. I cannot con- ceive of the commission raising the | fares on one set of lines and not on the other. The result would be, especially during the rush hours, that my cars would have a burden to bear that they could not possibly take care of; further, | this would take away business from the company which is seeking relief and which is entitled to it; and, of course, it would be horribly confusing to the public generally to have one set of fares on one company and another on an- other. “This has been my position for years, and I have said it 5o many times that I know it almost by heart. I said it at the hearing on the Capital Traction Co.'s petition last year. Nothing occurred since then to change my mind.” Wooden furniture exported from the United States last year was valued at $3,700,000, the highest figure since the World War. o A Quality, Low Prices and Service At This Reliable Lumber House H‘--:-b-r Millwork i g Building Paint Coal Supplies Small Ory rs_Given Ci Ne Delivery J. Frank Kelly, Inc. ia A 2101 Geor, N. 1343 Another Price Cut at EVERYBODY'’S Shoe Store 813 Pennsylvania Ave. NN\W. Prices already low have been cut again on every pair of Men's, Women’s and Chil- dren’s Shoes, Slippers and Tennis. Special group, $5 to $7 Arc h Support Shoes for Women, all styles, all leathers, $3.85. Large group of $3 to.$5 White Shoes, some with green, blue and black trimming, all heels, $1.85. Men'’s Shoes, all styles, $7 to $10 values, s L SUMMER SUITS ‘- by Kuppenheimer ' Kuppenheimer skill has lifted the summer suit out of the ruck of mediocrity—given it a true tailored fit, and all the lasting shapeliness that any suit ever boasted. Temper~ It won’t be our fault if Dad doesn’t get a break on For we've selected the most suitable gift items and priced them specially for those who want to remember Father, Our Regular $2 $ 1. MARYLAND Handmade Pure Thread Silk White Broadcloth TIES ¥ | |HOSE *’r SHIRTS Beautiful quality with famous Sta- sgt collar attached or neckband style. silk. | Newest patterns and stripes. 910 Seventh Street N.W. ‘We request the return of anything that can be bought for less elsewhere. Radio Joe Says “LEST WE FORGET.” Yrsue: thiv Tk Remember DAD Give Him a TIE or SHIRT Imported and Domestic Neckwear $1.00 to $3.00 Fine Shirts, $1.85 to $7.50 All Purchases Boxed Free The "Dog Day-" of July will soon be here —the days when perspiration flows like water—fool ‘em and stay cool and sweet. Srasieos - 316.50 ‘ap Tailored Linen Suits Tailored Palm Beach Suits........$15.00 wp Tailored Mohair Suits. ...... .$19.75 up Tailored Tropical Worsteds. .. .....$25.00 up The Tailoring Tells—and How!! Buy 'Em on the Famous «Nor-East non-crush” is the finest of Priestley's English cloths. . . made from the hair of the Angora goat and pure Australian wool (worsted spun) . . . & unique blending which gives the cloth a silky-appearance with non-crush merit. «“Nor-East” Clothes are finely tailored, light weight, cool in wear, resist moisture and retain their shape and smartness in striking contrast to the appearance of other tropical clothing when worn on humid days. Kaufman Blldgtt p’an Pay V4 Cash—Balance 10 Weekly or 5 Semi-Monthly Payments . é:)lriizssuits,$2 3‘.75 Extra Pants, $5 WASHINGTON’S LEADING TIRE STORE 1636 Connecticut Avenue Potomac 3501 Baltimore Store: 1700 N. Charles Street ing and handcrafting lend Palm Beach new life and lustre. 20 Other summer suits $15 to $45 CROSNERS 1325:F. STREET In patterns and colors that are appealing 1o good dressers. \and tailors are showing them in the mewess models for men and Joung mem EVERY SUIT BEARS THE PRIESTLEY LABFL