The spectator., 1919-11-21
BUDGET SYSTEM |S
 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 Extravaoance, lnefficiency and Duplication.
By JAMES p. HoRNADAY.


 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 it's liking and let a conference committee perfect the leg islation. In order thoroughly to un- 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 @fore the 18th 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, 1909, provides that Immediately on the receipt of the regular annual estimates of appro- prationS 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 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 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 prest- dent any carefully thought-Out finan- cal 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- divitlual 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- ities, 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 given department are sent to the head of that department, he in turn submits his estimates to the sec retary of the treasury. The various bureau chiefs act independently. Bu- 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 prac- tice this, method has resulted in ex- travagance, ineiliciency and dupica- ton of service.
 Creates Bureau of the Budget.
 The bill the house has passed ere ates in the office of the president q bureau of the budget. with a director at S1O000 per year and an assistan, director at $7,500 per year. These off cials are to be appointed by the presi dent No person appointed by the di rector is to be paid d salary in excess of 5000 year. and not more thar three persons appointed by him are tC be paid a salary at that rate. All em pldyees in' the bureau whose com pepsation Is less than S5,0O0 a veal are to be appointed from list of elig ibles furnished by the civil servic' commission.
 Tbe bill further provides that tn, |
 president shall transmit the budget [, congress op the first day of each regu lar session after the 31st of Decem berf.1919; that ;the budget shall con tain balanced statements of the rev enuas and expenditures of the govern ment for the preceding fiscal year an' of the resources and liabilities of in treasnry at the close of the year, to gether with, his estimates of the rev , ,enucs and expenditures of the Eoverl ment for the current year ana .oe, ,th resources, and liabilities of the. treas [ ury' at the close. of the year, and ais } This. nstimntes of the revenues and .cx pepditure needs of the government 10 .he ensuing s9scal year. and how |
 his opinion these needs should be me
 For vW6 New Cabinet Members.
 T,,,, ,~llifihu momhorx nf fh