Wausau pilot. [volume] (Wausau, Wis.) 1896-1940, 1919-11-25
BUDGET SYSTEM IS
APPROVED BY HOUSE
EITHER THAT BILL OR ONE OF
ITS OWN WILL BE PASSED
BY THE SENATE SOON.
WHY THE CHANGE is NEEDED
Provisions of the Existing Law for
Estimating and Controlling Appro-
priations Result in Extravaganza,
Inefficiency and Duplication.
BY JAMES p. HoRNApAY.

BY JAMES p. HORNADAY.
Washington.-The house of repre-
sentatives has gone on record in favor
of national budget system AS soon
as the senate can reach the subject it
will either approve the house bill. or
pass one more TO its liking and let
conference committee perfect the leg
islation. In order thoroughly to I'M
derstand the objects of the proposed
legislation it is necessary to consider
the provisions of existing law govern
ing the formation and transmittal of
estimates for appropriations as well as
the supervision and control of expendi-
lures after the appropriations have
been made. Under the law it is made
the duty of the heads of the sever
al executive departments, and of
such other officers authorized or re-
quired to make estimates, to furnish
to the secretary of the treasury. on or
before the 10Th day of October of each
year, their annual estimates for the
public service, to be included in the
book of estimates prepared by law I'M
der his direction"
The act of March 4. 1909, provides
that Immediately on the receipt of the
regular annual estimates of apprO-
prlatiOnS needed for the various
branches of the government it shall
be the duty of the secretary of the
tpna RI ocfi 70 o,Ix,
be the revenues of the government for
the ensuing fiscal year, and if the esti-
mates for appropriations, including the
estimated amount necessary to meet
all continuing and permanent appro-
priatiOnS shall exceed the estimated
revenues, the secretary of the treasury
shall transmit the estimate to congress
and at once transmit a detailed state
ment of all estimates to the president.
Defects in Present System.
The basic defects in this system are
these: Expenditures are not consd-
cred in connection with revenues; con-
gress does not require of the presi-
dent any carefully thought-out finan-
cial program representing what pro-
vision in his opinion should be made
for meeting the financial needs of the
government the estimates of eXpendi-
ture needs now submitted to congress
represent only the desires of the in
dividual departments, establishments,
and bureaus; and these requests have
been subjected to no superior revision
with view to bringing them into har
mony with one another, to eliminating
duplication of organization or activ-
tiles, or making them, as whole, con-
form to the needs of the nation as rep
resented by the condition of the treas
ury and prospective revenues.
Under the law it is the practice for
the head of each executive depart
ment to designate the chief of each
bureau under his control to estimate
the expenditure needs of his bureau.
When all the estimates of the bureau
chiefs in a given department are sent
to the head of that department, he in
turn submits his estimates to the Sec
rotary of the treasury. The various
bureau chiefs act Independently. Bu-
reaus of executive departments doing
similar work are thus stimulated to
rivalry and so far as the estimates go,
very little effort has been made to CO.
ordinate the activities of the several
departments and bureaus, and in prac-
tice this method has resulted in ex-
travagance, inefficiency and duplica-
ton of service.
Creates Bureau of the Budget.
: The bill the house has passed Gre
ateS in the Office of the president
bureau of the budget, with director
at $4,000 per year and an assistant
director at $500 per year. These off
Gals are to be appointed by the presi-
dent. No person appointed by the di-
rector is to be paid salary in excess
of $1,000 a year, and not more than
three persons appointed by him are to
be paid salary at that rate All en-
ployees in the bureau whose COM
pensation is less than $1,000 a year
are to be appointed from list of elig-
ibles furnished by the civil service
commission.
The bill further provides that the
president shall transmit the budget TO
congress on the first day of each regu-
lar session after the 31st of Deem
Der, 1919; that the budget shall con-
tain balanced statements of the rev.
enues and expenditures of the govern
Inent for the preceding fiscal year and
of the resources and liabilities of the
treasury at the close of the year, to-
gether with his estimates of the rev.
enues and expenditures of the govern
ment for the current year and of the
resources and liabilities of the treas
ury at the close of the year, and also
his estimates of the revenues and ex-
penditure needs of the government for
the ensuing fiscal year. and how in
his opinion these needs should be met.
For Two New Cabinet Members.
Two additional members of the
presidents cabinet are proposed in
bills pending in congress. A measure
introduced in duplicate. in the senate
by Hoke Smith Oem.). Georgia.
and in the house of representatives
by Horace NJ Towner (Rep.), Iowa.
Fathers Attitude.