The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1912-09-20
Prohibition of Budget
Plan, He Declares,
Unconstitutional.
HE ISSUES ORDER
FOR ITS ADOPTION
Through Secretary of Treasury
President Directs Heads of All
Departments to Make Esti-
mates of Revenue and Ex-
penditures in Conformity
With This Method.

Beverly, Mass, September Is.-Pres-
ident Taft tonight made public a let
ter to Secretary Of the Treasury
Franklin Macveagh. taking open issue
with Congress on the question OF a
Federal budget, and directing all heads
Of government departments or inoe-
pendent officers Of the government to
make their estimates OF revenue ana
expenditures for the fiscal year In cor
formity with the budget plan.
The Presidents letter TO Mr.. Mac
veagh declared that the prohtbiti'n
IN the big supply bills passed by IN"
House in the last session practically
forbiddins the use Of budget system
IL Unconstitutional He said that no
other great nation in the world 10
without a budget system; pointed out
that only through this method can ac-
curate estimates be made for the coun-
try's benefit to show how the people 9
money 10 being expended, and scored
the effort Of Congress to prevent Its
adoption. His letter to Mr.. MacFeash
reads in part as follows:
IF the President is to assume re-
sponsibiii,y for either the manner in
which business of the government is
transacted or results obtained. II is
evident that he cannot be limited by
Congress to such information as that
branch may think sufficient for his
purposes. IN my opinion, IL Is entirely
competent for the President to submit
to Congress and to the country a state
mert of resources, obligations. rev.
enues, expenditures and estimates. in
the form he deems advisable And this
power propose to exercise.
Only Country without Budget.
The United states Is the only grea,
country that does not have budget.
Each year the Congress has been max
ing increasingly large appropriations
based on estimates which are sub
mitted by officers acting in the ca
pacity Of ministerial agents to Con-
gress under a law which makes no
provisions whatever for executive re-
view and revision. This have sought
in measure to correct by asking the
heads Of departments to send estimates
TO me before they were printed. but
the conditions attached by Congress
have been such as to make executive
review impossible.
The present legal directions as to
estimates are based On the theory
that there IS no need to take stock
before passing on appropriations; that
it is not necessary to consider reVe-
nues or treasury resources Congress
has directed each executive officer to
submit through the Secretary Of the
Treasury, who IS made to serve In
TIE capacity of an official messenger
without any discretion whatever. I'M
less q department head may fail to
prepare a request for appropriation in
the form prescribed by Congress. In
which event the Secretary OF the
Treasury has imposed upon him the
duty to submit an estimate FOR him.
Congress has created certain conf
on appropriations. who alone
have power ID review and revise re-
quests Of the department. heads. Even
in its own organization. howeer. Con-
eress has failed to make provision for
expenditures and ssti-
mates for appropriations In relation to
revenues.
Authority is granted for the ex-
peajtture Of $1.03o.o0s.0o0 each year
without any thought as to where the
money 10 coming from. This is done
on the theory that there will be no de-
icit-Congress has been doing what
has been called surplus financing
Wa,ile the Constitution makes Con-
gress responsible for money-raising as
well as for appropriations. response
bility for borrowing has been shifted
to the President by empowering him
to procure loans to meet deficits in
case a deficit may result.
Questssn Of ExpedSesey.
The great question Of national ex-
pediency which is raised by the ac-
tion Of Congress above referred 10 Is:
Shall we OF shall We not have a ma
h.,dO Al - -
constitutional right Of Congress to
prescribe the manner in which reports
of expenditures and estimates shall be
submitted TO IL by department. heads.
Il do question the practical wisdom
OF continuing 20 operate the govern.
ment under ninety different statutes
passed at ninety different times. whict
prescribe two hundred different forms
Of preparing and submitting financial
data to Congress and the public-dats
which. when prepared have no eiemen,
Of uniformity or standard and cannot
be used to presen; TO ofncerS or 4
the people an accurate picture of &C
tivities pertaining to any one sub.
iect or the government as a whole
Although BY such cursory review
as could be given. I have succeeded
each year in reducing initial esu
mates Of millions Of ds'Iars. IL 10 no
Just TO make the President In AM
but a Sigh; degree responsible 70
such estimates when required to b
submitted TO Congress In the manne'
as At present prescribed.
u have gone thus at length In stat
ing my position IN order that yos
may understood the reasons for urg
ing that you cooperate with tn
Commission OF Economy and Emcienel
in the preparation Of such hnancia
statements and summaries az will en-
able me 90 place before Congress an'
the country for the drst time In ou'
history. q clearly stated and under
ssapdable. businessiske proposition
which Win enable Congress and tn
country 90 shink IN terms Of wha
Il 10 that the government 70 Aotns
what n - that the eomaua0efatieI
scoasiass1 % $1,000 HasAs