The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1921-12-06
DIRECTOR PLACES
STRESS ON VALUE
OF BUDGET PLAN
Useless Expenditure and
w aste Will Be Cut
Down, He Ayers.
is AID TO CONGRESS
Will Promote More Intelligent
Consideration of Appro-
priations.
is AID TO CONGRESS
Continued from Page One.

Continued from Page Quo.
abling appropriation will not be
beneficial in tending toward the
elimination of useless expenditure
and waste.
The fact that contracts are let
by the government which, of neces-
sity, cannot be completed within
the fiscal year during which they
are let does not imply the necessity
of Immediately making available TO
the contracting department the en-
tire sum Of money eventually 10 De
expended on the contract.
THE whole habit of making con- j
tinuOus appropriations to which the
government has been committed in
the past is only an encouragement
TO a lack OF scrutiny OF public work
by the head of the department I'M
der which II is carried on, ana an
encouragement to shiftlessness and
careIessness on the part of the sub
ordinates more directly concerned
in IL.
Revolving Fund Question.
FINALLY. this system Of prepar-
fnE the budget will confne the at
tention Of the Executive. Of Con-
gress. and of the public to the one
great important question, TO WI,
the relation OF the money actually
To be spent by the government TO
the money actually to be received
by the government in any given
year. all its. outstanding obligations
and indehnite commitments. pro-
jects, and enterprises considered.
This will enable Congress. with
more intelligence. to determine at
any time both the necessity for re-
trenchment and the ability of the
government to engage in additional
projects to be initiated BY Congress
outside of the budgetsry provisions.
There exists such a mass of un-
determined liabilities arising out
of unexpended appropriations Of
former years. and so much result
ing uncertainty as to the true
amount Of expected receipts and
expenditures. that ii would seem
that Congress should recognize the
situation and Immediately repeal all
outstanding continuous apprOpria-
lions and revolving funds save in
those cases. IL any. where the par
ticular character OF governmental
activity may require limited fund
as working capital. giving Of
course. proper recognition to legal
" enforceable obligations standing
against them. The naval supply
account fund is a conspicuous eI-
ample. The fund is the outgrowth
Of several acts of Congress, the
latest being the act of March l.
1921 C41 Stat. 11s9). 1t constitutes
a revolving fund or permanent
working capital for procuring and
issuing standard supplies. and I'M
der the legislative provision last
mentioned it stood at a total on
June 30. 1921. of s225.476.2I7.54.
Aided by 81 q Year Men.
in preparing the budget the d.
rector has availed himself of ad-
vice and experience from every
available source both inside ana
outside the government agencies
He has received generous and val
liable assistance from both the Blu
reau Of Efficiency and the Institute
for Government Research. The aim
has been to submit the facts re-
ouired in the different portions Of
the act in the most simple. con-
densed, and easily understood form
consistent with full and accurate
Information.
Under the budget law as il now
stands the work of intelligent
business revision of appropriations
involving the expenditure of over
$4,000. 900. 900 must be done by the
director of the budget. the assistant
director, four advisers of the direc-
tors selection, to be compensated
at the rate Of $4,000 per year. the
balance of the organization being
secured under civil service rules at
salaries not exceeding $4,000 per
year. The director Of the budget
has no hesitation in stating that
this could not have been done this
wear, and in the future ii can not
be so accomplished without recourse
10 personnel already in the govern
ment employ, no matter to what
extent the appropriations or salary
limitations involved in the law
might be increased The director OF
the budget was fortunate in being
able to call in body OF business
men who. at a time OF emergency in
the governments business affairs,
responded to that patriotic instinct
characteristic of every good Amer
lean and left their business to be-
come Federal employees at 81 per
year.
impossible to Match.
The temporary service so spien-
didlV rendered IN this formative
period by minds drafted from
among the leading business men of
the country is being gradually
taken up by men selected from the
various departments who have been
found qualified to continue the
work The director OF the budget
states without hesitation that the
government has at its command
among the existing STAN OF Its
business organization men OF the
high ability demanded who. because
of their large experience, it would
be impossible to match. whatever
the compensation involved. by re-
course to outside employment.
There Is a tendency on the part
of many to assume that the bureau
of the budget is established pri-
marily for the sake of reducing ex-
penses. The bureau Of the budget
is designed. through its facilities
for securing Information. TO be IN
a position to give impartial advice
to the President and to Congress in
all matters regarding the proper
business functiOning of government.
Because at the time Of the estab-
iishment of the budget bureau there
was a great necessity existing for
the reduction of governmental ex-
penses, and since under the old de-
Vent lized system of governmental
mess great extravaganza exist