, 1921-12-05
BUDGET DECREASE FOR THE YEAR
1928 AMOUNTS TOHALF MILLION

IT This system Of preparing the bud
get Will confine the attention Of the
executive. OF congress, and OF the pub
nC 10 the n great important ques-
ton. TO wit. the relation. OF the money
actually to be spent by the government
20 the money actually to be received
by the government In any given year,
all its outstanding obligations and in
definite commitments. projects. and
enterprises considered This will en-
able Congress. with moro intelligence.
to determine at any time both the ne
! cessity for r-etrenchment and the abil-
lily OF the government TO engage in ad-
dItlonal projects TO be initiated by con
gress outside OF the budgetary provis-
Ions"
Likening the federal government TO
n business corporation, General Dawes
POINTS to these faults" which he says
existed:
The president Of the corporation the
president OF the United states) gave.
practically no attention to It's ordinary
routine business.
The administrative vice presidents
DIembers OF thu cnbineo were allowed
TO run their several departments as II
each separate department vas an in
dependent authority IN all matters OF
routine business.
I Because OF a lack of any outlined
business plan. no system existed for
making purchases or in selling mnteri-
a. along business lines Under n mi
lied policy.
No balance sheet Of the corporation
IS a whole was ever prepared. The
- -
/ tho contingent obli cations OF the vari-
Gus federal departments. thus result
ing in money being drawn from him
continuously IN eAtess of h est
mated annual running expenses.
The corporation, in effect. seldom
goconsidered al Gnw.se project entered
In to by any department.
The administrative heads OF h de-
partments were selected as a rule with
little reference to their business quail
ncations and were compelled to rely
largely upon h advice of subordi
mates welded TO h theory OF the
tight OF Independent operation of the
department" -
Outlining the work of the various CO
originating agencies established by
n, sidential order TO rectify faults
IN Tie rOullne Du1lfifes VI tHe ESNtsb
mcnt.' General I)awrs says:
'~'ney involve not transfer of an
iht. ity the location CT which has been
nAcd otherwise 10y statute.
They involve the delegation OF no
questions OF policy ave that OF econ
omy AMI efficienCy.
They are simply agents by which
unified methods OF ordinary business
can be imposed by the chief executive
They are simply to give the presi-
dert OF the United States, the same
AGENCIES Of contact and transmission
OF authority as obtained in my private
organization.
THE involve no material addition
to the exepnse OF governmental ae
ministration.
They are non partisan, being com
poned of men already in the goverir
ment service.
They are in effect simply n &c
grouping under an executive leader
ship OF certain OF the present employs
OF government OF such experience, cot
tact. n relation in Its routine bust
ness as enables them to make possible
the application Of common bust
ness methods.
at can not be too often reiterated
That this most important reformation
in the governmental business system
is dependent upon the president Of the
| United States himself. and upon hi
| continued assumption OF his respons
bility as its business head. The min
ute he relaxes his attitude of atten
ton to his duty there will be felt thu
natural pull of the departments and
establishments towar the old systeI
OF complete independence and decor
tralization."
General Dawes concludes his report
with this statement:
In making this report the director
of the budget will state that his con