Evening journal., 1920-01-08
THURSDAY, JANUARY 8, 1920.
NArIoNAn BUDGET sYsfEM-Irs nIsronY

r, ELAWAlE through Henry p. Scott and his associates
~ on the state National Budget Committee. has been
akng such active part in promoting the National
budget movement that summary of the history OF that
movement fail to be Of interest to the people Of
STATE
Interest in national budgetary reform received It's
lrs impetus during administration Of President Taft
Believing that governmental expenditures increasing
sut OF all proportion TO actual needs, President Taft
obtained permission Congress in 1910 TO appoint
Commission Economy and Efficiency. The purpose OF
he commission was 10 investigate into the organization
of the United States Government and report to the Pres
dent on what steps could be taken toward reducing the
mount OF annual expenditures.
After three years Of effort, the commission, Of which
Dr. Frederick A. Cleveland was chairman, made an ex-
hausve report to the President, and recommended that
N executive budget system be adopted by Congress TO
lvold the many Implications Of departmental effort that
s investigation disclosed President Taft was confronted
with much changed Congress in 1913 however, and the
report OF his Commission, which approved by him
md submitted Congress. not kindly received. The
President did succeed focusing public attention upon
economy In the administration OF the nations
nscal affairs
In the last Presidential campaign both the platforms
Of the Republican and the Democratic parties contained
planks pledgng The adoption OF Federal budget system
Last July the Speaker OF the House appointed Select
Committee on the Budget TO which referred for cop-
sderaon several bills and resolutions introduced In the
lower chamber Of Congress looking toward the adoption
OF budget system Representative James w. Good, OF
Iowa chairman Of the House Committee on Appropra-
lions was named head Of the Select Committed Hearings
were begun September 22 concluded on October ana
on October Chairman Good introduced his bill and re-
ported the result Of the Select Committees hearings Ihe
bin was adopted on October p with only three votes
recorded against IT,
The Good bill although hailed as the nrst on
the part Of Congress TO give the nation an executive
budget system did receive widespread endorsement
as an effective budget measure It's main provisions
created Bureau Of the Budget In the office of the Pres-
dent to which transferred all OF the present duties
OF the Secretary OF the Treasury in collecting and trans
tng 10 Congress the annual departmental estimates OF
expenditure and independent auditing and accounting
department answerabe solely to the fundsantns body
Congress- The b therefore, did not attempt to lmme-
oaey set up budget system but gave the President the
machinery with which to work out two years hence
system under which he would have not only the authority
10 receive and eolaie departmental estimates but the
much more needed power to revise or reduce and co-or
dinate these estimates.
Co-Incidept with the introduction Of several budget
bills andesoutons In the House. bills and resolutions OF
similar intent introduced in the Senate select
Committee al the Budget was likewise appointed In the
senate to which was referred all Of the bills and resou
lions introduced Senator Medill Mccormick OF ILLINOIS,
was named chairman Of the committee
During the nrst few days OF the present session OF
Congress. Senator Mccormick introduced new budget
bin upon which the Senate Select Committee commenced
its hearings December i5 The hearings interrupted
on December is by pressing legislation then being voted
upon by the Senate and adjourned until January r.
The Mccormick bin differs radically from the Good
bin in that It would Immediately set up budget system
ana give the Secretary Of The Treasury full power to
transmit to Congress- through the President, the annual
executive budget in which departmental estimates OF
expenditure would be presented by him. revised re-
uced as he sees It, and balanced against available rev.
cnue The Mccormick bill accordingly would place the
Bureau OF the Budget the office of the Secretary Of the
Treasury and make him true Finance Minister by re-
eyng him Of the supervision Of all activities non-ger-
name to the actual conduct OF the nations fiscal affairs