The Washington herald., 1917-01-28
urges unified BUDGET
AS FOE OF u. 5. WASTE
Senator Weeks Tells How Federal Ex-
penses Might Be Curtailed.


The Observer.
For a century the government busi-
ness has been conducted In q slip-shod,
happy=go-lucky fashion that would wreck
the strongest of corporations In short
time. We are the only great nation on
earth which does not adjust its e8pendi-
lures to its revenues by means OF an
annual budget But we have reached
the short turn in the road. Either We
must mend our business ways. or some
troublous times are ahead for the gov
ernment.
''Viscount Bryce, in his American Com
monwealth, written some years ago, said:
Under the system of Congressional
finance here described. America wastes
millions annually. But her wealth, Is 30
great. her revenue so elastic, that she
is not sensible of the loss.
The day Of elastic revenues, which
Lord Bryce describes. has gone by for
ever. The burden even of indirect taxa
tion is becoming heavy, and We are
turning to direct taxes to supplement the
huge revenues which this nation needs
10 realize her own greatness. As long
as taxes were not felt, the public could
summon UP little interest in government
eNtrava gance. In the future the Federal
taxation is to be very important ele-
ment in every mans life. When tho
public realizes that its contributions are
wasted in huge sums by a disorganiZed
business system that fosters extravasance
and ineficieny its wrath will fall upon
that political party which, having the
power. does not end such a system.
Railroad Rates.
Railroad rates are a vital concern to
the public. What would We think OF
any railroad that ran its affairs on the
~. a al he h.
lie to pay for its ineffciency in increased
rates? By carrying over the analogy We
can imagine the annual meeting OF the
board of directors OF that railroad.
The President-Gentlemen, We must
begin to plan for a new terminal in New
York. Our traffic
The Board dnterruptIng)-An right.
go ahead and build 1t. What else do
We need?
The President-But. gentlemen. the
rost-have you considered our revenues?
The BOard-Never mind about them
nov: every thing will come out all right.
What else should We have?
The President-Locomotiyes, rolling
sIork doubIe-tracking on the mountain
division. a new branch line to the coal
fields new stations
The Board-Go ahead and get every
thing. We will total up the cost after
wards.
At the next annual meeting:
The Board-well. did you do what we
authorized?
The PRESIDENTIAL the work has
started
The Board-And how do we stand
financially?
The President-we have deficit of
100000
The Board-That's all right Raise the
fAaf
doesn't meet the situation We will bond
the road for the difference.
Ridiculous as this sounds from a bust
ness standpoint, it is in effect precisely
the way the government spends its money
today. At every session the Congress
aIIOts over a billion dollars to various ex-
penses or in harmony with any general
plan or policy of administration.
In 4 private business efficiency man
a-ed each project is balanced against
the others. All may be desirable; but
if one uses up the spending surplus, the
others must be deferred TO the future.
The whole business is managed with an
eye primarily on the revenues.
1t is exactly the reverse with Congress.
Congress spends the money first, as
measure by measure the appropriation
bills are adopted. When all are written
into law and the money is gone. Congress
then totals up and finds out what It
has spent. If the expenditures are dis
covered to exceed the revenues either the
taxes are raised. or the debt is passed
along to the future 1t is all haphazard
and impTovdent; and of course 1t costs
the public millions OF dollars annually
in money waste. because when inefh-
cheney and extravaganza exists at the top
Of any organization, great or small, de-
pend upon it that they exist throughout
that organization.
The nation has not always spent
money in this fashion, nor did the found
crs Of the Republic contemplate the pres
ent system. Rather, in its fiscal relation
the plan OF government was des, yned to
follow the British system. Originally It
vas intended that the Secretary of the
Treasury should be a genuine minister
of finance, estimating the revenues in
advance and making the estimates OF
expenditures conform to income.
To-day his function in this respect has
fallen to the status Of a mere editor
without discretion He merely passes
along to Congress the estimates of ex-
penditures prepared by the various
cabinet heads, who. naturally, are fight
ing for every penny they can get. Wheth-
or work is duplicated, whether work is
worth while at all. or whether the various
spending activities are efficiently con-
Quoted, is nothing to the Secretary OF
the Treasury. His only influence in the
proceedings lies within his estimate of
revenues submitted annually to Congress
along with the expense estimates OF the
Secretaries.
Formerly Wrote Tax Bills.
once. too, a single committee OF the
House had Jurisdiction in matters Of both
revenue and expenditure. The Ways
and Means Committee formerly wrote
the taxation bills and also the appro-
priation bills, constituting within itself
the nearest approach to a minister OF
finance we have ever had But after
Congress had assumed this function. IL
proceeded to scatter the responsibility.
First the Ways and Means Committee
was shorn of its power to appropriate
money. Later the Appropriations Com
mittee was weakened by removing from
its jurisdiction several of the most i'm
portant appropriation bills; so that now
there are eight separate appropriations
committees of the House, while another
committee is in charge OF revenue legis-
lation.
AN early jealousy existing between
Congress and the Executive was respon-
sible In the first place for the assump-
fiOn Of ministerial p0Uers nv TOp oraSs