The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1921-12-06
U.S.. WILLSAVE
TWO-BILLIONS,
DAWES SHOWS
$2,032, ,285,962 Actual Re.
ductiOn, Director of
Budget Says.
STRESSES VALUE
OF NEW SYSTEM
Useless Expenditure and
Waste Will Be Cut
Down, He Ayers.

Down, he Ayers.
Nearly $4,000. 900. 900 will be saved
IN government expenses for 1928 as
compared with the expenditures for
1921. according to the report of
Charles G Dawes. director OF the
Bureau OF Budget. as submitted to
Congress yesterday by the President.
The estimated expenditures for the
fiscal year ending June 80. 1922.
already neary half over. show a
reduction Of sl.5l3.537.6 as COM
pared with the actual expenses for
1921 and a reduction Of $447.1O4.239
is shown for the 1923 expenditures
as compared with the estimates for
1892 making total reduction OF
s1.96l.24l.s21. Taking into considera-
ton the proposed transactions in the
principal OF the public debt and trust
funds the reduction actually will go
above the $1,000. 900. 600 mark vi
s2.032.2s5,9 9623O
Is Detailed Report.
The report of the director Of the
/ budget is an extremely exhau tive
one and goes into the most minute
details, both as to what the bureau
has accomplished since il was es-
ta.bla;hed at the direction of the
President and as 10 what il is con-
templated the bureau shall do.
In submitting the budget for 1928
Mr.. Dawes said in part:
In presenting the budget OF the
United States for the fiscal year 1928.
covering the sum OF s3.5e5, 154.127.
in compliance with the requirements
Of the budget act. the Director Of
the Budget has prepared II upon the
basis or the amount of cash which
must actually be withdraw from the
| Treasury during the hscal year 1923
The method OF appropriation OF
money crctofore followed has re-
suited in a conditiou-of things under
which 1t is almost impossible for
either the Executive, Congress. or
the Secretary OF the Treasury to have
before them tue picture of the
fiscal condition Of the Government
at any particular time. Although
Congress has by stringent penal law
prohibited the creation OF deficiencies
and clearly indicated that its annua |
appropriations were intended to limit
the amount to be expended for such
periea. yet millions of dollars have
been annually spent by the depart
ftffents above the estimates submitted
at the beginning OF the fiscal year.
fnd In recent years. due to the great
e1ms appropriated in connection with
ythN war, hundreds OF millions Of dol
lnr9s have been SO expended by the
departments. a course made possible
by deficiency and supplemental appro-
priations, the existence of revolving
funds. and unexpended balances.
FluctuatinR Margin,
The distinction between the appro
priations for a given year and the
actual expenditures for that year
should be clearly borne in mind.
Appropriations for any given wear do
not represent the money actually
spent during that year. but are in
tended TO cover the obligations which
are incurred in that period. part of
which are paid currently and a mart
of which mature and are DISCHARGED
in subsequent years. Consequently
the expenditures of year must be-
composed of the amounts maturing
| in IT, some of which were appropriated
In previous years and some of which
are covered by the current appro.
priations. In addition to this should
be added the use Of permanent and
indefinite appropriations which re.
| quire no annual action by Congress
and funds from other sources.
while the Director Of the Rudge,
presents with the estimates the in
| formation necessary to enable Con.
| gress to make its appropriations in
the former way. II is urged that 4,
it Will pass the budget providing
| for the amount actually to be ex-
pended during the fiscal year. with
! executive pressure now being ex-
erted to keep the departments with
| in the limits of this expenditure a
continuance Of the method will au-
tomatically largely eliminate the
| indefinite cash demands currently
made in the past by departments on
| account of uncXpended balances in
addition to their current appro-
priations.
"A system by which requests for
appropriations are based upon the
actual need of money for disburse-
ment during the fiscal wear for
which the appropriation is made
will thus tend to prevent hereafter
the wide. indefinite, and fIuctuatins
| margin between the expenditures
for any given year and the appro-
priations requested of Congress TO
cover the same period.
Urges RECONCILIATION.
Again. if Congress will follow
this method, IL will at the end of
each fiscal year of necessity direct
its attention to the relative i'm
portance of existing work and pro-
jects. considering the then state of
the government and public business.
thus promoting a more intelligent
| consideration of appropriations.
Under the old system where after
the authorization of project a
continuous appropriation was made
in an amount estimated as neces-
sary to complete it. 1t passed, for
all practical purposes, outside the
ken of Congress. 1t Is inconceiv-
able that as the fiscal condition of
the government changes and as
business conditions in the country