The New York herald., 1921-09-07
PRESIDENT PLANNING
DEEP BUDGET CUTS
Government Expenses Will
Be Kept Within Income
by Drastic SlaShing.
AIDS DIRECTOR DAWES
Garment Will BE Made Ac-
cording to Size of Cloth,
Says Official.
ARMY IS HIT HARDEST
Supplies Will Be Disposed OF
Rapidly to Prevent Further
Deterioration.
ARMY IS HIT HARDEST

Special Despatch to TiIE New YonK HEnAr.p.
New York Herald Bureau,
Washington. ID. e.. sept. q.
President Harding and Director Of
the Budget Dawes have agreed to keep
the Governments expenditures within
it's income. The President is said to
have been gratifled over the figures
disclosed in the preliminary estimates
Of expenses for the next fiscal year.
and is confident that the reductions in
outgo from the Treasury will meet
with favor among the American peo-
pie.
President Harding's review Of tho
preliminary Government expense esti-
mate for another year was made
aboard the Mayfiower on a cruise. Di-
rector Dawes was one of the members
of the party which accompanied the
President
Although the preliminary estimates
showed substantial cuts under the spend
ing Of the current fiscal year. the Presi-
dent and Mr.. Dawes are said to have
concluded that still further reductions
are possible.
The President has determined to back
up Director Dawes with a firm hand
in the drive for economy. In spots
where reluctance was exhibited by de-
partment heads to meet the general de-
mand for slashing down of expense bills.
cooperation has been effectively installed
and there was officially declared to be
the most active spirit of getting to-
gether all ends of Government activity
in effecting larger savings.
Neither the White House nor the
Budget Bureau would disclose the totals
shown by the preliminary estimates or
even to suggest how large the savings
will be on the basis Of those figures. 1t
is said the Anal figures are not to be
submitted to Director Dawes until Sep
tember Is. Until that time the budget
officers of the different departments act
ing under new orders. will engage in
sharp trimming of the preliminary fig
ures.
While no official statement was au-
thorized concerning the cuts in expenses
the observation Of one high official
showed the determined attitude of the
Administration. He said:
1--WE are going to make the garment
according to the size of the cloth. We
are going to do that only one way
that is by chopping and slashing every
where possible"
The Administration will soon be ready
to announce the conclusions OF the Joint
Committee on Reorganization OF the De-
partments and Bureaus. The programme
undertaken by tn. committee Is ex-
pected to result in very substantial re-
ductions In the Governments expenses
by consolidating bureaus which now
overlap In their efforts at multiplying
costs.
Complete tentative reports on the
work of the joint committee Is expected
within the next two or three weeks. Its
report will be made the basis of special
legislation to authorize the mergers of
various agencies and other necessary
steps to harmonize Government work
In many different lines.
1t became known tonight that prob
ably the heaviest cuts In the spending
of the next fiscal year will be made In
the War Department. but the extent OF
the reductions will not be known until
final figures have been submitted and
approved by the President after the lat
ter has received the recommendations.
Supplementing his other efforts to pare
down expenses, Director Dawes to-day
perfected the organization OF two new
economy boards. the creation OF which
was recently authorized by the PreS-
dent. They are the Federal Liquidation
Board and the Federal Purchasing
Board
Each Is made up OF one representative
from each OF the Government depart
ments and Independent agencies. The
general purposes OF the two boards were
outlined by Mr.. Dawes at the initial
meetings to-day. and the groundwork
laid for coordination in all Government
purchases and sales These two boards
will function under the supervision OF
Chief Coordinator Smither of the new
general supply organization within the
Budget Bureau.
As soon as Government inventories are
finished showing the surplus war stocks
now on hand n is expected the liauida-
tion board will! begin shaping itsepians
to convert into cash much Of the sup
plies which are not needed for any cur
rent or future use. A large amount
of the supplies on hand OF certain kinds
is gradually deteriorating In value and
as business proposition Government
II is said. will urge their
disposition without more delay after lists
are made showing the status of these
supplies. and the probable future re-
quirements OF the departments.