The citizen. [volume] (Berea, Ky.) 1899-1958, 1919-11-13
BUDGET SYSTEM IS
APPROVED BY HOUSE
ETHER THAT GILL 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
pristions Result In Extravaganza
Inefiieiency and DupI cation.
BY JAMES p. HoRnAoAY.

BY JAMES p. HoRNADAY.
Washington The house of repre-.
sentatives has gone on record IN favor
~ national budget system. A. Soun
rs the senute can reach the subject u
VIII either approve the house hill ~
pass one more to its liking and let ~
conference committee perfect the leg
tslntion. In order thoroughly 10 un-
dcrsiand the objects OF the proposei
legislation II Is necessary to consider
the provisions Of existing law govern
ing the formation and transmitial ~
estimates for appropriations Us well ns
the supervision and control Of cxpeni'
lures after the appropriations have
been made Under The law II l. made
The duty "of tho heads of the sever
~ executive departments, and uf
such other officers authorized or re-
quired 10 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 un-
der his direction"
The act Of March 4. 1893. provides
that Immediately on the receipt Of the
regular annual estimates Of appro
priations needed for the various
branches OF the government II shall
he the duty Of the secretary of the
Treasury 10 estimate as nearly as may
be the revenues Of the government for
the ensuing fiscal year. and II the esii-
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 consld
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
dlvidhal 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 a 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 II 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.
chiefs In "A given department are sent
10 the head OF that department, he In
turn submits his estimates TO the sec
rotary OF the treasury. The various
bureau chiefs act independently. Blu
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, inefiiciency and duplica-
tIon 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.
cials are TO be appointed by the presi.
dent. No person appointed by the d.
rector Is TO be paid salary In excess
three persons appointed by him are TO
be paid a salary at that rate. All EN-
ployees I'm the bureau whose com
pensatlon is less than $1,000 a year
are to he appointed from list of ellg-
ibles furnished by the civil service
commission.
The bill further provides that the
president shall transmit the budget 10
congress on the first day OF each regr.
lar session after the 31st of Decem-
Der. 1919; that the budget shall con
tain balanced statements OF the rev.
enues and expenditures Of the govern
ment for the preceding fiscal year and
OF the resources and liabilities OF the
treasury al 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 {