Evening star., 1913-02-26

the government first plan for its land pur-
chases, buildings and public works, then
borrow money to acquire and to construct
them. proportioning the cost over period
Of twenty years and making the. bonds
ISSUED to meet the cost payable out of
an adequate sinking fund.
Following these suggestions, not
only question the desirability of continu-
ing to appropriate for new projects with
out a definite plan and before definite
provision is made for financing them
either by increased revenues or bond is
sues. but. further. that. without a plan
there is necessarily large element Of
waste.
1.-The analyses which have been made
suggest quite a different handling of the
subject of authorizations and appropria-
tions than has obtained in the past. Con-
sidering this from the viewpoint of the
needs of the service, it is suggested that
appropriations should be of the following
general classes:
II. Appropriations to cover overhead
and operating cost
80. Appropriations for upkeep of prop
erty.
20. Appropriations for fixed charges,
including sinking fund
- Appropriations for permanent i'm
provements.
Suggests Form of Appropriations.
With respect to the form of appro-
priations for current expenses, I am Of
the opinion that sharp line should be
drawn between appropriations for over
head and expenses Of operation and those
for other current purposes. Appropria-
tiOns authorizing expenditures for over
head expenses and operation should be
annual, biennial, triennial, quadrennial or
quinquennial, as by the terms and condl-
tions may be best adapted to the man
agement of the public business to great
est advantage. These are subjects con-
cerning which questions of policy must
be currently determined. On the other
hand, l am of the opinion that provision
for repairs, replacements and deprecia-
ton. interest on the public debt, pensions.
subsidies, grants. judgments, awards, IN
IDENTITIES and sinking fund requirements
should not be left to current or annual
determination. With respect to these eX-
penditures every question of policy should
be decided at the time the law is passed
authorizing them Appropriations Tor
such purposes, in my opinion shouio not
be taken up by an appropriation COM
mittee except to ascertain what amount
will be REQUIRED under funding measure
that would be passed by the Congress as
a part of the original authority. Under
such law the amount required should
be a matter for administrative or judi
cial determine ton
How Pensions Should Be Met.
There is no greater reason for current
acts of appropriation to cover pension
rolls than there is for an annual appro-
priation to cover interest on the public
debt. A present situation fairly illus
trates what may regularly happen when
the amount required to make payment
on pension claims authorized is included
in an annual appropriation bill. The ap-
preparation for the current year is not
less than $2O.O00,OO0 short of what it
should be to meet pension claims. The re-
suit is that in the estimates for pensions
for the next year request is made Tor
an appropriation to be made Immediately
available but in case this is done the
same situation would be faced the year
following. 1t is probable that the appro-
priation already made, together with the
estimates before Congress. will not cover
pension claims filed before June 80, 1914,
by S3O,OO0OOO. In my opinion. what
should be done is to have a careful cal
culaton made of demands which viii.
probably be made under a pension law
before it is passed-a precaution that has
heretofore never been taken. After such
an estimate has been prepared. then es-
Inmates would be made annually on the
basis of experience for the consideration
of Congress in providing revenues to meet
Treasury demands, but the pension law
should carry with 1t a permanent appro-
priation.
Courts Now Make Awards.
1.-The same may be said of indemnities
and court awards. When a Judgment or
award has been made it should be con-
sidered as an appropriation payable out
of funds in the Treasury. unless the award
should be SO large in amount as to threat
en- the credit of the government. in which
case the Secretary of the Treasury should
be permitted to withhold payment until
provision could be made by borrowing or
through increasing revenues for meeting
the demand. Instead of this the present
practice is to permit the courts to make
awards for payments of claims and then
to require the payment to await the slow
process OF special appropriation. This
is not only unjust. but it leads to a kind
Of traficking which should not be en-
couraged. The only reason for requiring
Judgment creditors to wait for further
congressional action would be in case pay
ment Of large Judgment would en-
an estimated annual requirement. when
authority should be given to the eXecu-
tive to defer payment till adequate rev.
enues had been provided or bonds were
issued for the purpose
"As has been said. after law has been
passed providing for the borrowing of
money on public credit. thereby authoriz-
ing the payment of interest. or for the
payment or pensions. subsidies. lndelnni-
ties. or the setting aside of revenues for
the payment of the principal of the pub
lie debt. there is no further question of
policy for Congress to consider until it
may be found desirable to repeal the law
or to deny the obligation In general
this policy has already been follow ed
The list of permanent appropriations is a
long one. For the current year the esti-
mate reaches nearly S134O00.0OO In the
list of permanent appropriations for 1913
are included such items as $3,OOOOO0 for
meat inspection: 81. 100000 for the opera
ton and care of canals and other works
Of navigation: $125 900 for the removal of
Instructions in the Mississippi Illinois
and other rivers; 100000 for the mainte-
nance of channels, South Pass Missis-
sippi: 81. J0o. 900 for the collection of Gus
toms. These are not proper subjects for
permanent appropriations whereas the
expenditures of the character indicated
above should, in my opinion he thus pro-
Vided for.
Cash for Improvements.
With respect to the acquisition of per-
manent property, 1 would recommend,
as matter of financial policy, that no
appropriation be made except pursuant
to plan which shall first have been ap-