The New York herald., 1921-06-30
HARDING BEGINS HIS
DRIVE FOR ECONOMY,
BACKED BY OFFICIALS
Dawes Explains Budgetary
Financing to Cabinet and
600 Bureau Chiefs, Who
Cheer Him.
PRESIDENT is IN CHAIR
Meeting, Unprecedented in
U. s. History, Points to
Revolutionary Changes
and Large Savings.
BIG MERGERS DECIDED ON
Director, Who Gets Precedence
Over All, Tells Hearers: Job
VIII Be Done With or
Without YOU
BIG MERGERS DECIDED ON
Spec.or Despatch to THE NEW YorK HIAls.

New IOrk HerHI0 bureau,
Washington. ID. C., June 20.
Charles G. Dawes, Director of the
Budget, in the presence Of President
Harding and his Cabinet and 600
Government bureau chiefs, to-day
laid down the basic principles on
which the new budget system will
operate, and rallied behind him every
Government agency in'a a drive to re-
duce Government expenditures and
eliminate waste and extravaganza.
President Harding presided at the
meeting. the first of It's kind in the
history of the Government. and
sounded the call to economy with the
declaration that the Administration.
strongly committed to economy, Is
driving at loose and unscientific ex-
penditures Of the Government" and
will attain the object in view through
the operations Of the budget system.
Economy Programme Outlined.
Developments which stood out as
significant of the Administrations
purpose to go into action at once In
trimming Government expenses and
estimates for future expenditures
were:
/. President Harding and the
Cabinets unanimous approval
Of the basic plan giving to the
Budget Director precedence over
Cabinet heads or heads of inde-
pendent establishments in all ques-
tions relating to Government re-
quirements and expenses.
2. Decision Of members of the
Cabinet to name the budget
representatives OF their respec-
tive departments tomorrow and
submit their names to the Budget
Director for immediate confer
cnces.
3. Approval by the President OF
Mr.. Dawes's proposal that
the Budget Directors orders take
precedence over those Of Cabinet
heads on a call 10 bureau chiefs
and other officers when their ad-
vice or presence is required.
a. Director Dawes'e assertion
that It may be possible for
many Government bureau officials
TO reduce Government spending in
the next fiscal year under appro-
priations which become available
July by as much as rs per cent.
s. Pledge of 600 bureau chiefs.
by a rising vote. that the
President will receive earnest sup
port in plans to "cut to the bone
In expenditures from current ap-
preparations and meet the test in
future economies outlined by the
Budget Director.
6. Assurance OF the Budget d.
rector that the Budget Bu-
reau and Congress will work in
harmony in enecting economy
through reclass,fcation Of the civil
service.
7. Budget Directors warning
that wholesale mergers Of bu-
reaus and large reductions In per-
sonnel will be NECESSARY.
Address by the President.
President Hardins's brief statement
10 the assembled bureau chiefs in the
auditorium Of the Interior Department
Building had for It's keynote the plac-
ing of Government operations on a
stable business basis. He said there
must be radical departure from meth
DDS Of other years.
"r am glad 20 come before you and
stand sponsor for this meeting" said the
President ''I do not know of a meeting
Of this kind since the foundation Of the
Government. The present Administra-
ton is strongly committed to economy
What Is done here to-day Is done with q
realization Of the necessity Of driving at
loose and unscientinc expenditures in
the Government.
There has grown UP I'm our country
an impression that the public Treasury
is inexhaustible and that no economy Is
necessary IN public expenditure"
He called on his fellow workers to
realize that they are directly responsible
for the outso from the Treasury and
that II devoived on thess servants Of
the people" to bring about a new condi-
ton OF Affairs In Government finances.
The President snid he would look to
those In responsible posts 70 effect the
economies 80 badly needed In all ends
OF Government work and expressed con-
ndence that the appeal will be met 10y
ally. His remarks led up TO a brief In
PRODUCTION OF Gen. Dawes.
Gen. Dawes was In fine fettle. He
laid down the law" with all his dynamic
force. He stirred the bureau chiefs with
reminders that they had become "opi-