The Birmingham age-herald., 1921-06-28
BUDGET SYSTEM OPERATIVE FRIDAY IN TANGIBLE FORM
White House Statement Called Attention to the Me- ceSSity for Economy In
 Government Expenses
By Associated Press

Washington. June 2S.--Plans pre- paratory to the tablshment of the new federal budget system. which take tangible form today. As first step, Charles G. Dawes. director of the budget at request of the Presi- dent called a conference for Wednes- day of all cabinet members and other executive administrative officials, at which President Harding will preside. The President also directed MT Dawes to draft tentative form for the new budget within the next 30 days, with estimates of the absolute minimum of government funds needed for the fis- cal year begnning July 1.
 A White House statement called att tention to the necessity for economy in governmental expenditures and said that the tentative form of the budget should point the way. 'as would be done in any ordinary busi- ness being confronted with the ne- cessity for economy Tt is under stood that at the joint conference something of the nature of the eX- pected cut in spending will be brought out, as well as the detailed plans of the budget machinery.
 White House Statement
 The President does not assume" the White House statement said, "a, has been the custom under the old system with individual departments, that the minimum of governmental expenditures in the year Is the amount fixed by Congress in the approprla- tions."
 The maximum of the budget. which Mr. Harding has asked to have draft ed, is expected to be below the min- mum amount provided for in existing congressional appropriations. the statement added, while the economies thus anticipated will be carried on into an alternative draft of the bud get for the fiscal year beginning July l, 1922.
 It was made plain by Mir. Dawes associates at the treasury that be intends to impress upon the heads and subordinate officials of tne spending departments of the gos-- ernment the full meaning of the word economy, MT. Dawes said per- sonally he was prepared to aid in pruning and pairing to the limit
 Did Not Waste Words
 Mir Dawes did not waste words In his call for the conference. Ths
 
 to "the heads and assistant heads of executive departments and inde- pendent governmental establsh ments. chief clerks. chiefs and as sistant chiefs of bureaus and others therein"
 We've got 10 get these people tp working together,'f he added later ,"flow would corporation as big as this government operate? Not like the government has been. l hope. We want all of these officers and dl rectors to help here and the govern ment corporation is going to prqside It's the first time it's ever been done. but 1t won't be the last. It's bu1-. ness affair, and ought to be done in business way"
 It was indicated also that the sub ject of reorganization of the various government departments would find it's way into the discussion at the conference. The White House state- ment referred to this phase as potent field for giving incident to general operation of the budget and it was said at the treasury that the budget plans might as well anticipate con- gressional action In reorganization and reclasslfication of the employers. trimming the expenditures corres- pondlngly-