The Monticellonian. [volume] (Monticello, Ark.) 1870-1920, 1919-11-21
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 Extravaaanoe.
Inethciency and Duplication.
BY JAMES P. HoRNADAY.

By JAMES p. HoRRADAY.
WaShington.-The house of repre-
sontauves has gone on record in favor
OF national budget system. A. soon
rs the senate can reach the subject if
viii either approve tie house biI. Or
pass one more 10 its liking and let II
conference committee perfect the leg
lS'atioh. In order thoroughly to un-
aefStaHd the objects of the proposed
legislation it is necessary to consider
Rhe provisions Of existing law govern
ing The formation and transmfttal of
eStff$ttes for appropriations ~ well rs
the supervision and control Of eXpendi-
lures after the approximations have
been made. Under the Iaw il Is made
the faty of the heads of the sever
al executive departments. and of
such other officers authorized or re-
quired 10 make estimates 10 furnish
10 the secretary Of the treasury. on or
b@a7re the 18th day Of October of each
year. their annual estimates for the
public service, to be included in the
hook OF estimates prepared by law I'M
der his direction"
The act of March l. 1900. provides
that Immediately on the receipt Of the
regular annual estimates of appro-
priations needed for the various
branches of the government It shall
be the duty Of the secretary Of the
treasury TO estimate as nearly as may
be the revenues Of the government fer
the ensuing fiscal year and if the esti-
mates for appropriations. including the
estimated amount necessafy to meet
all continuing and permanent aBpgo-
priations shall exceed the estimated
revenues. the secretary of the treasury
shall transmit the estimate to congress
and at once transmit detailed state
ment of all estimates TO the president.
Defects in Present System.
The basic defects in this system are
these Expenditures are not consid-
cred in connection with revenues; con-
gress does not require of the pres-
dent any carefully thoHght-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
diydual departments, establishments.
and bureaus; and these requests have
| been subjected to no superior revision
with a 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 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 given department are sent
tie 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 a
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 preS-
tiee this method has resulted in ex-
travagance. inefiieiency and duplica-
ton of service.
Creates Bureau of the Budget.
The bill the house has passed Gre
bureau of the budget, with a director
at $4,000 per year and an assistant
director at 81 500 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 $4,000 a year. and not more than
three persons appointed by him are to
be paid a 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 n 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
eneps and expenditures of the govern
ment for the preceding fiscal year and
Of the resources and liabilities of the
treasury at the close of the year, to-
cether 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-
nenditure 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 pr posed In
bills pending in congress. A measure
introduced in duplicate in the senate
by Hoke Smith Dem), Georgia.
and in the house of representatives
by Horace NJ Towner Rep), Iowa,
Fathers Attitude.
H.