Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-05-16
BY MEDILL MCCORMICK.


TIME conferees Of the House and
Senate budget committees are
engaged in reconciling the
differences between the budget
bills which have passed the respective
branches Of Congress. Only three
votes were cast against the House
bill, while the Senate bill was passed
without a dissenting voice or dis
eenting vote.
The reform of the financial methods
Of the government. agitated with IN
creasing energy for twenty years, has
been brought to the point Of consum-
nation by economic burdens result
ing from the war. Both France and
Great Britain today have national
debt of $4,000, 100000. roughly ten
fold the amount which the govern
ments of the two countries owed De-
fore the outbreak Of the conflict in
1914. The United States. which mad
been relatively debtless, today owes
$4,000, 100000, or we'll nigh twenty
1--WE times as much as before the war.
Heavy Increase In Taxation.
There has been a corresponding in
crease in taxation. Not only are the
taxes levied by the national govern
ment fvefold what they were nve
years ago, but the cost OF the state
governments. which played little part
in the actual support of the war, ls
fvefold what 1t was twenty years
ago Tho people are not only bur-
dened by the swollen debt and the az
sregate taxation. but they are sur
fering no less from the imitation OF
currency due to the increase in debt
and the continuing deficit between
revenue and expenditure.
All the familiar signs Of an eco
nomic crisis are present: that is, all
the signs which point to violent
contraction Of credit and something
very like the panic Of 1907.
In order that the country might
be the better able to meet the prob
lem presented by this economic sit
uation. Congress has sought to pro-
vide by law for . budget system sim
liar to that which existed under Alex
ander Hamilton and his immediate
successors. and analogous to the sys-
TENS which obtain in other demo-
cratic countries.
what Budget Ii.
In q general sense. a budget is an
estimate Of revenue and expenditure
for the forthcoming year. presented
by the executive for the considers
ton Of Congress- But it 10 moro than
that; It IL an estimate in detaif ~
well n in summary OF the proposed
expenditure and must be prepared in
such form as in itself to institute
comparisons between past years. the
current year. and the year in prospect
for which estimates are submitted. II
any budget system is to contribute to
the efficiency and economy; If it is to
make for efficiency and eliminate
waste; IL It IL to result in the dis
missal Of useless employees and q more
Just reward Of useful employees. the
budget law must provide adequate
machinery for the preparation OF the
estimates
Although Congress is very nearly
unanimous for the adoption of bud
get system. there is ground for differ
ence Of opinion as to the precise form
and terms Of the budget. no less than
as to the machinery for it's prepara-
tion. Upon one point we are all
agreed-the legal and constitutional
responsibility of the President for
the sum Of the estimates Of expendi-
ture submitted to Congress must be
az absolute and unacceptable as the re-
sponsibility to Congress for expendi-
lures authorized by law must be in
escapable and absolute. No serious
proposal has been made which would
void or limit the responsibility or
constitutional prerogatives Of either.
Agreed on the Principle.
1t has been the judgment of the
Senate. as shown by the terms Of the
Senate bill. that the Secretary of the
Treasury should be vested with the
powers once exercised by Alexander
Hamilton; that he should resume the
functions of true minister Of finance
and he the Presidents chief and re-
sponsible agent or deputy in super
vising the preparation of the esti-
mates. In SO far as the press has
commented upon the bills now before
the conferees, the newspapers of the
country with substantial unanimity-
north, south. east and west-repub-
Iican as well as democratic. have up
held this principle of the response
bility Of the Secretary OF the Treas
ury. and I believe that on this point
the differences between the two bills
may be more obvious than actual. and
that since the conferees are agreed
sibility We can hope for agreement
before Congress leaves Washingto on
in June.
The making of budget is a contin-
Suous process. Almost at the moment
that one completed budget reaches
the Speaker of the House OF Repre-
sentatives, work must be begun upon
another. There must be machinery
for every step in the preparation OF
the estimates. provided either by ex-
.cu,iye order or by law. Beyond that
We know that no machinery so pro-
vjded can work except as it is made
To- work by men inteIligently coll
. iabora;ins for a common purpose.
Preparation Of Budget.
Let US consider in general Nay
The preparation of the budget under
The proposed reform The Presiden;
in conference with his cabinet mus,
hold a preliminary conference upon
the sums needed to carry on the rou-
tine business of the government. and
TO carry out the Administrations and
tho party's economic political and