Bisbee daily review., 1921-01-01
HARDING FAVORS REDUCTIONS IN
 ARMY, NAVY
Retrenchment In Government Expenses Is Discussed By
 Next President.
OUTLOOK OPTIMISTIC
Head Of Federal Reserve Sys- tenn Tells Senator U. s.
 Conditions Better.


 try's financial problems and the pro blem of cutting down government ex penses were canvassed by President elect Harding today in conference with congressional leaders and officials ol the federal reserve board
 Particular concern was shown by Senator Harding in the curtailnent of army and navy appropriation at the present session of congress, and he went over that subject in detail with Representative Mondell of Wy oming, Republican leader of the house and Representative Anthony of Kan sas. chairman of the house sub-com- mittee. which frames army appropria- tion measures.
 Recently he had similar confer ence with Representative Kelly of tions subcommittee on naval expen- ditures.
 w. Fl. G. Harding, governor Of the reserve board, Edmund Platt. the vice governor, and several officials of the Cleveland reserve bank, talked about general financial conditions with the presidentelect and gave him their ad-
 
 during the next few months. Farmers relief is understood 70 haze been one of the specific problems Iii s..u:sc Il :. with the board officials advisiDg against special government protection for any particular group.
 Will Hold Down Army
 Mondell told the presidcnt-elect that the governments greatest saving during the present session could be by holding down the army and navy budgets and predicted that by careful economy the annual appropriations for ali departments could be scaled down to approximate ly two billion dollars lie recom- mended against any reduction in arm ament until there had been an inter- disarmament agreement but said millions could be saved ill axpen- ditures of the military and naval es- establishments without seriously crip- bling their efficiency.
 Legislation fixing the enlisted strength of the army at 150. 900 or 175,O0O in place of the present author ized strength of 2S0,000 was suggest ed by Representative Anthony as one practical way of reducing expenses He also detailed various econom1ccs which he said could be accomplished by the executive branch of the gov ernment in it's use of army funds
 Senator Harding very earnestly urged the importance of Ke-PIug ap- down to the lowest pos sible figure said Anthony after the 
 He indicated the wish the appro- priatiens for the army be kept down in every possible way always keeping in mind however, that It would not do to impair the strength of the or backbone.
 He told me of his deep interest in policy making adequate provisions for voluntary military train ing. He desires that the reserve. of ficers training corps be continued, to- sether with civilian schools and col lege training whereby we shall keep at all times not less than I50.000 young men in voluntary training with the conception that their education wil not be properly kept without the 
 Note of Optimism
 A note of optimism in regarG to financial conditions was sounded by Governor Harding with the president elect to whom he reported that the had passed it's most trying stage
 "The conservative influences which have been in operation, during the year." said the governor in a state ment, have prevented a larger mea- sure of distress than has actually oc- cured. Business generally is begin ming to adjust itself to new low levels and is getting ready to proceed on a sounCer and saner basis.
 50 far as the federal reserve sys- tenn is concerned. it must necessarily deal with the situation as whole. It cannot be expected to protect indivi- duals. who from lack of prudence or foresight may have become hopelessly involved, but by maintaining it's re- serve strength. it is amply better to maintain general conditions of sol vency throughout the country"
 New Years Eve was spent by the president-elect at home. where he and Mrs. Harding entertained 8 number of personal friends. Tomorrow he has only few callers on. his list but plans to spend most Of the day at work in his office.