New-York tribune., 1920-01-18
Senators Hear
Ogden L. Mills
On Budget Plan
Former State Senator Gives
National Tax Associations
Views for Reform of
Government Finance 8

Numerous arguments in support Of
the proposed adoption Of a national
budget system were presented to the
United States Senate Committee on
Budget by Ogden L. Mills, who ap-
peared before that body at session
held last Wednesday.
Speaking for the National Tax Asso-
citation, the former State Senator
pointed out that the old system was
generally admitted to be antiquated
and costly to the public and that the
offered in this reform.
Mr.. Mills indorsed the provisions Of
both the pending Mccormick and Good
bills, saying that the latter meas
ure was slightly less desirable than
the former, but that either combined
the essential features Of sound bud
get system.
Present System Unscientifc
ut is generally conceded that our
present system Of estimating the finan-
Ing appropriations therefor and of
! reporting expenditures. is unscientiic,
lacking in uniformity Of classification
and incapable Of giving to Congress,
the President or the people q picture
Of the financial status of government
either in respect Of the last fiscal year
or OF the needs OF government for the
coming year." said Mr.. Mills. at ia
also. generally admitted that the remedy
for this state of affairs is to be found
in the establishment of what is known
as the budget system. A budget is the
instrument through which the several
operations involved in the administra.
tion Of the financial affairs Of the gov.
ernment are correlated, compared and
brought under examination at the
same time.
"Mr. W. F. willouehby suggests. on
Page Of his book entitled "The Prob
lem Of a National Budget that the
financial statements should be accom-
panied BY the administrative reports
Of the Chief Executive, the heads OF
charge Of the several services Of the
government. The suggestion seems tc
me to have considerable merit.
VI course, as he points out, the
financial statements contained in the
budget give and can give but the bare
figures showing the financial results
OF the operations. and in order thai
their significance may be seen 1t wouc
, seem to be essential that they shoulc
oe accompanied by statements showing
the results in terms of work accom-
plished or to be accomplished, the ne
cessity or utility Of such work. thu
problems that have had to be met. tht
methods that have been or will have
to be employed, and so on. In othe,
words, these administrative report,
should furnish the means through
which the figures are to be interprete1
and may be understood.
Suggests Treasury Head
Oase my opinion on the followin,
i. =, First. 1t is logical and proper tha
2 me Secretary of the Treasury, as tn
/ chleI nnancial officer Of the govern
ment, should DO the real budget chief
, an office lower than that of a Cabine
> ofncer Will be able effectively to COP
WITH other Cabinet officers and tn
various departmental and bureau heads
" Is idle, or course, to expect that tn
PRESIDENT himself will have suficien
time at his disposal to give his Der
, sonal attention to the Department.
! controversies, many Of which will b
as to matters Of detail and am afrai
mat mere bureau chief, unless he |
only too frequently give way before tn
lnsistent demands Of the Cabinet Of
: f1cers. II this should happen. YOU
, whole system will break down, becaus
Congress will begin to lose faith in til
budget as submitted, believing that
J does not represent the needs Of depart
ments pruned to bedrock. but contain
the old abuse Of excessive estimate
and demands.
"ln tho second place, II you put I'll
budget bureau Immediately under tn
Executive, you divorce the two essen
tial parts that go to make up a com
plete budget II will ha the rrirno ~
duty of the Director Of Budget to pre-
pare and submit the estimates as T.
the financial needs Of the governmen
for the ensuing year, while the func
tion Of drafting plans for the provision
OF the means with which to satisf,
those needs Will remain the responsi
bility Of the Secretary Of the Traas
ury. In other words, you place tn
: responsibility for estimating expendi
turs IN one man, and the responsible
ity Tor formulating and submittinI