The New York herald., 1921-10-08
HARDINC'S ECONOMY
PLAN Turns DEFICIT
INTO big SURPLUS
Receipts Exceed Expendi-
lures by S31O,914,3O8 in
First Three Months Of
New Fiscal Year.
TIDE SLOWLY TURNED
Ordinary Disbursements In
1921 $418,014,607 Less 3
Than in Same Period Of
Last Year.
DAWES ALWAYS PRUNING
President Gets Reports Of Cuts,
Makes Comparisons and Or
ders New Slashes>if
Not Satisfied.
DAWES ALWAYS PRUNING

Special Despatch to THE Nrw YoRK HnaALD.
New York Herald Burcsu.
Washington, ID. c., Oct. Il
President Harding and members of
his administrator are beginning to
win in their determined efforts to
bring rigid economy into Govern
ment expenditures and to keep the
outgo lower than income, according
to Official reports Of the Treasury
Department.
The Administration starts the Sec
ond quarter of the fiscal year with
income exceeding expenditures. The
excess of ordinary receipts over ordi-
nary disbursements totalled $S1o.914.-
sos for the fiscal year up to October
5, according to an oflcial statement
Of the Treasury Department.
In July and part of August dis.
bursements exceeded receipts, de-
spite the economy measures Of the
Administration. The tide seems to
have turned definitely. and the cam.
paign for efficiency and economy Is
apparently bearing fruit.
In addition, the Administration on
October S found net unexpended bal
ance of almost $7SS, 1000. 900 in the gen.
eral fund. For years this balance sell
dom has been above $500, 100000. In
the past officials have been centert ~
able to keep it up to the $3.50, 100000
mark.
Big Excess OF Receipts.
Another phase Of the balance sheet
is that the excess Of receipts over dis
bursements for the first quarter of the
fiscal year is nearly as great as the
amount on hand at the close of the
asst fiscal year. June /.
When receipts fell of % per cent, in
comparison with last year. the Ad-
ministration reduced disbursements
nearly SO per cent. The level of spend
ing was depressed faster than the fall
ing income.
Total receipts from ordinary sources
for the first quarter of the present fiscal
year plus five days In September
amounted to .1s1.s15,ssi. Fer the
corresponding period last year receipts
were cs1.564,Ss1,330, or 1872. 2.9e5.44s more
than the current period. Ordinary dis
bursements thus far this year total
sSS1.001.573, or s41s.o14.6o7 less than In
the same period of the fiscal year 1921.
Budget Director Dawes Is delighted
with the results but believes there Is
still much room for Improvement II the
ADMINISTRATION is to save the millions
Intended by the President and his Cab
!res.
Dawes Is planning new and drastic
measures OF economy which probably
will be made public this week through
the White House. He rs working with
the President on the estimates to be sent
to Congress for the next fiscal year, the
first In which the budget will become
officially effective.
Figuring ON iO43 Estimates.
Estimates Of money needed In 1923
have been In preparation by all depart
ments for several months. Most of them
are In the hands OF Mr.. Dawes and the
President Together they are trying to
determine where deep cuts may be made.
Conferences are frequent between Mr..
Dawes and Cabinet members and their
subordinates.
The budget office is giving first hand
consideration to each of the $4,000 Items
IN the list Of estimates. The salary OF
each clerk and messenger Is included in
the estimates. In Washington alone al
most 10000 persons are on the Govern
ment pay rolls
The financial pruning knife is siash-
ing out items Of the estimates page at
n time, Il Is understood. The details are
being kept secret, but enough has be-
come known to indicate that when the
Budget Bureau finishes It's work the
estimates will include only prime govern
mental necessities.
When the Budget Bureau completes
its pruning of the detailed estimate of
any given department. the total remaIn-
ing Is sent to the White House with last
years total for comparison. The Presi-
dent suotracts the new estimates from
the old and decides whether the reduc-
tion has been proportionate with the de-
minds OF the Administration for econ
omy.i IL the decision Is adverse, Mr..
Dawes receives word. Then the Cabinet
officer whose department II under con-
s.dcrntion flashes the pruning knife
again. Sometimes in the second instance.
- IL WELDED by the Department officials.
but more often the blaoc makes its In
c.sion under the guiding hand OF the
Fudge. Bureau and not infrequently over
protests OF tho officials concerned.
Probable receipts of the Government
rcx. year must be estimated by Mr.
r,awcs In making UP the budget. Be-
cause OF the uncertainty Of Congress In
dealing with revision OF the revenue law
this estimate of ncxt years receipts i5
a battling problem.
Tho official statement Of receipts from
rgdinary sources 80 far this year shows
castoTrs. 37s.it+.531: income md excess
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