The Sentinel=record., 1912-09-20
TAKES OPEN ISSUE WITH CON GREss WITH REFERENCE TO
 APPROPRIATIONS.
OTHER COUNTRIES USE PLAN
Says Congress Would Limit Executive to Such Information as It Sees Fit to Give-Orders Depart
 ment Estimates Made.

Beverly. Mass, Sept. 19.-President Taft tonight made public letter to Secretary of the Treasury MacVeagh, taking open issue with. congress on the question of federal budget, and directing all heads of government de- partments or independent officers of the government to make their estj- mates of revenue and expenditures for the fiscal year iii conformity with the budget plan.
 The presidents letter to Mr. Mac Veagh declared that the prohibition in one of the big supply bills passed by congress in the closing hours of the last session. practically forbidding the use Of budget system, is uneonstitu- tional. He said that no other great nation in the world is without budget system, pointed out that only through this method can accurate es- inmates be made for the country's benefit of how the peoples money is being expended and scored the effor; of congress to prevent its adoption His letter to MT. MaeVeagh reads in part as follows:
 If the president is to assume re- sponsibility for either the manner in which business of the government Is transacted or results obtained, it is evident that he cannot be limited by congress to such information as that branch may think sufficient for his purposes. In my opinion, it is entirely competent for the president to sub
 init to congress and to the country a | statement of resources, obligations. revenues, expenditures and estimates. In the form he deems advisable. And this power l will exercise.
 "1'he United States is the only great country that does not have budget. Each year the congress has been mak- ing increasingly large appropriations, based on estimates submitted by of- ficers acting in the capacity of minis terial agents 10 congress. under law which makes no provisions whatever for executive review and revision This l have sought. in a measure, to correct by asking the heads of depart ments to send estimates to me before they were printed, but the conditions attached by congress have been such as to make legislative review impos- sible
 "The present legal directions as 70 estimates are based on the theory that there is no need to take stock before passing on appropriations; that 1t Is not necessary to consider reve- nues or treasury resources. Congress has diected each executive officer to submit an estimate through the sec retary of the treasury, who is made to serve in the capacity of an official messenger
 Congress has created certain com
 mittees on appropriations who alone have power to review and revise re- quests of the department heads. Even
 in it's own organization, however. con
 gress has failed to make provision for considering expenditures and esti
 mates for appropriations in relation to revenues.
 Authority is granted for the ex- penditure of a thousand million dol l lars each year without any thought
 as to where the money is coming from. This is done on the theory that there will be no deficit congress has been doing what has been called I surplus financing While the consti- | tution makes congress responsible for
 money raising, as well as for appro
 priations. responsibility for borrowing
 has been shifted to the president by empowerine him to procure loans to meet deficits.
 ] The question "shall we or shall we
 not have national budget?' Is called one Of great national expediency, anu
 resuming his argument, the president
 continues:
 Although. by such cursory view as
 could be given. have succeeded each year in reducing the initial estimates.
 millions of dollars, it is not just to
 make the president. in any but a slight degree. responsible for such es- inmates when requored to he submit- ted to congress in the manner at pres ent prescribed
 T have gone thus at length in stat ing my position in order that you may understand the reasons for urging that | you co operate with the commission
 on economy and efficiency in the pre- paration of such financial statements and summaries as will enable me to
 place before congress and the coun- try for the first time in our history.
 a clearly stated and nnderSandable,
 brsiness-like, proposal which will en-
 able congress and the country to think
 in terms of what 1t is that the gov
 ernment is doing, what 1t Is that the
 administration proposes to do. With | this accomplished, the people may then judge, for themselves whether