The New York herald., 1921-05-31
LEGISLATORS DELUDED
Hidden ReappIopriations.
Revolving and Other Funds
Conceal BIG EXcesses.
EYES CLOSED TO REMEDY
Only Way. 1t Is Pointed Out.
Is to Reduce Expenditures
to Estimates Adopted.

What is being done in Washing
ton to lessen the expense OF gov
ernn1ent and to reduce taxatIon'
THE NEW YORK HERALD has
made a thorough investigation OF
the situation to find answers to
these two questions-if there are
any. 1t publishes herewith the first
article of series which Will be
published daily during this week
and which will make clear to the
readers of this newspaper existing
conditions and prospects,.
speciol Despatch 10 TIE NEW YORK HERALD.
New York Herald Bureau,
Washington, ID. c., May 80 }
This nation spends on the Federal
Government from one to two billions
of dollars a year more than !, ought
to spend and more than it thinks 1t IS
spending solely because it does not
know--the public does not know and
the Government does not know-hoW
or where the money is spent until
after the transactions are complete
and the Treasury pays out the money
Before anybody can intelligently criti-
else Government expenditures, and be-
fore Congress can take action TO meet
criticism, a more general working
knowledge Of Government spending
methods must be attained. But such
knowledge is practically an impossi-
bility except to the few who can make
an extended study Of the Government
fiscal practises and then keep con-
stantly in touch with the work and
expenses OF all the departments.
Almost everybody can talk in general
terms about the open floodgates of ex-
travagance, but not one individual out
OF ten thousand can point to the various
controls and show where one channel OF
expenditure can be shut off and save
hundred millions, and another to save
two hundred millions, and so on. There
are some experts on the Government
payroll who might do this, but they are
the men whose job is not to show how
money can be saved, but how money can
be raised so that 1t can be spent.
We in this country have been prone
10 talk about the extravaganza of Euro
pean governments, but they at least are
fully acquainted in advance with the
sums to be distributed during fiscal
YEAR. This affords opportunity for in
telligent and helpful criticism and ex-
erts a constant pressure for economy.
Last year the English treasury knew at
the beginning OF the fiscal year just how
much revenue would be collected and
spent. The budget amounted to abost
$4,000, 900 600. and at the end Of the year
the estimates made at the outset were
found to be within s20,o00.0o0 of the
actual receipts and expenditures.
Real Conditions Distorted.
But our system of approprating ac-
cording to the ideas of Congress and
spending according to the ideas Of de-
partment chiefs makes it impossible to
tell at the beginning of the year how
much the Government will cost the tax
payer. This condition is being taken
advantage of TO prove that the Govern
ment is practising economy and that
Congress has suddenly become parsi-
monious in making appropriations, when
actually nothing of the kind is true.
It will be seen by the accompanying
Table No. / that for the fiscal year 1921
the Democratic Secretary OF the Treas
ury submitted estimates to Congress for
$1,000, ,3501e3. but that the Republican
Congress cut the actual appropriations
to s3,717.441,tS4. But the figures show
ing the actual expenditures for the fiscal
year 1921, which ends July | next
amount to s5.602, ,024,s6f. At the time
the appropriation bills were passed much
credit was taken by Congress tor cut
ting the estimates. but no actual saving
resulted Even after deducting the rail-
road expenses. which were not included
in the appropriations, the expenditures
are still far above what the regular APP
preparation bills provided.
AS shown in table No. >, the same
discrepancy exists In the appropriation
bills for 1922 and the estimate Of Sec
retary Mellon of what actual expendi-
lures will be. The estimate Of expendi-
lures II A.565.s .s17 .033, while Congress al
lows only So 80 1852. exclusive OF de-
ficiencies for 1921. and If the postal ex-
penditures which are not included ~
Secretary Melons estimates be ex-
CilUcd lne lOttl HppTUptltllpIlS LOT w.,
exclusive of the 1921 deficiencies, arc
less than s3.OD0oo0eo. This is $500
go 600 less than what the Secretary OF
the Treasury says will actually be spent.
Reduction Really Fictitious.
IN this case also, as the figures show.
Congress went through the motions OF
economizinR by reducing the estimates
OF the Democratic Secretary of the
Treasury from s5.259.5i5.51i 10 s3.s0e 02a. :
641 and credit II taken for saving
S.Ii3.iS926, but Secretary Mellon shows
that the Government plans to spend II
billion and 4 half more than that So
as far as any change in the spending
programme is conce rued Congress Nigh;
as well have gone ahead and appro-
priated the full amount of the estimates
By the Democratic Secretary OF the
Treasury.
This docs not prove the wisdom or
the Democratic secretary OF the Treas
ury in estimating for spending ma-
chine built up by the Democratic Nd
ministration. and which cannot now be-
Instantly dsmantled. Rut II does pro, :
that II Congress is to reduce this spend
ing machine 10 something like it, pro
war size some other method bcsidca
n reduction In appropriations. which
means nothing, will have 70 b. en-