The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1921-11-20
ACTUAL SAVINGS
FROM SCRAPP|NG
SHIPS NEGLIGIBLE
Maximum Amount Saved Is
Placed at S15O,OOO,000
Which Will Have No e.
feet on Tax Rate
BY RALPH BURTON
special Correspondent of The Age Herald
Copyright. 1921. by The AEe-Herald.J

seate views are strongly discounted
by officials of the United States bu-
reau Of efficiency. who estimate that
at the most liberal maximum the saw
ings from the cut would not exceed,
for this country, $150,OOO,Oo 900 a year,
and who declare that in consequence
the effect on the tax rate will hardly
be noticeable. The good will come
in the. possible prevention of future
wars, but there is no relief from the
burdens of the past.
The impression that large savings
would result from limiting arma-
| ments has been fostered, of course.
by the statistics showing that by far
the greater part of the expenditures
of the country go for military eN-
penses'--to pay Tor past wars or to
prepare for new ones. Because the
| national budget has increased from
around s1,000,000,00O in pre-war times
TO about $4,000, 900, 900 now, and be-
cause national expenditures are more
than IS per cent for military pur-
poses" the public felt that so dras-
tic a limitation of naval growth
would be felt heavily in the budget.
AS matter of fact. however, pen
sions and care of the disabled cal
for more than the total of naval APP
preparations.
Diminish War Possibility
The possibilities OF the plan should
not be minimized. In the first place,
the Hughes proposals, If accepted,
will mean an end TO the race for SUI
premacy involving England, Japan
and the United States, and will there
by tend to diminish the distrust of
one nation for another. The naval
holiday should have the effect of
diminishing the possibilities of war.
The proposals would, moreover, not
only mean immediate, though COM
paratively small, savings, but might
prevent condition that would lead
to vastly increased naval appropria-
tions in the future. Maintenance
costs, of course, will be somewhat
reduced, but the gains, assuming
that the proposals are accepted, will
be more potential than actual, and
little relief from the tax burden is
in sight.
Out of an annual budget o. ap-
proximately $4,000, 0Oo,O 900, the only
item that will be touched by the ma =
val limitations plan is that provided
for the growth and maintenance o.
the navy-about $500, 900, 600 all told,
Even If construction now under way
is halted, the saving will not be net,
for claims of contractors will have
to be satisfied, and those claims will
be considerable.
Must Meet Obligations
The public will probably wonder
whore. the $4,000 900, 900 goes If the
Limitation of the navy amounts to so
little financially. brief analysis of
the budget will show that the United
states has fixed obligations that
cannot be affected by any economies
in Administrations they must be met,
In short, the cost of past wars. in
Guiding the World war constitutes
the principal part of our budget
problem.
Appropriations for 1922 total, ac-
cording to figures prepared by the
clerks to the Senate and House ap-
propriations committees, $3,909.2S2.
zos.46, Approximately one fourth of
this-$ss2, $50, 000-represents inter
est on the public debt--the war
debt-a fixed charge in which there
can be no reductions only as the
debt itself is reduced.
The sinking fund requirement is
S2s5,754,S64.S7 and miscellaneous
items account for s141.371,4ss more.
The total of these obligations is given
as Sl.335,776, 360.S7--more than one
third the total appropriations for the
year. Figures compiled by the bu-
..
light on the obligations of past wars.
There are, in addition to the charges
mentioned, provision of s237,5o1,-
620 for the care of veterans of the
World war, and pensions for soldiers
who served before that time for
s265,50o.o0o more
Very Small Saving.
There Is no expectation that the
size or expense of the army will be
materially reduced, and naturally the
civil functions of the government will
not be affected. Coming down then
to an analysis of the naval appropria-
tons 1t will be found that of $780,
oOo,000-odd provided for naval pur-
poses comparatively small amount
can be saved
Expenses of the naval establish
ment have increased enormously since
the World war. With the greatest
reduction possible. according to the
present outlook. as a result OF the
limitations plan, the United States
Will be spending a great deal more
than 1t spent for the same purposes
in pre-war years. OF course, the new
price level that resulted from the
war is probably partly responsible.
But the possibilities of saving much
from merely scrapping some ships and
not building others, diminish when IT
is realized that the naval personnel
cannot be reduced a great deal; that,
as in any business enterprise, over
head" costs will continue about as
they stand now; that maintenance of
ships that remain in service will be
at least as high as in pre-war years,
and that submarine and aviation
construction will not be much af-
fected.
S03.OOO.000 Maximum.
For practical purposes. about the
only item among naval appropriations
that can reasonably be counted upon
as offering chance for savings is
that made for naval construction. The
total appropriation for that purpose
in 1921 was $104,000,000. of which
$4S 1000. 900 was for hulIs and machin-
cry and $45.000,000 for armament and
armor. The remaining $1,000, 900.
which probably would not be reduced
appreciably, was for submarine tor ;
pedo boat construction The maxi
mum then that could be saved would
be $4,000. 900.
For 1922 the appropriations are
smaller. The items for hulls and
machinery total $4,000, 900, for sub
marines 100000, and for armor and
armament s3s,oo0.o0o. or $40. 1000, 900
|. In all. The saving at most could not
exceed 5000. o0o OF course. there
would be certain economies In main
tenance costs, and perhaps in per-
sonnet costs. But the bureau of ef-
ficiency is positive the total savings
could not exceed $150,000,0o0 and
more probably would not pass
81 .00O, 900.
The brighter side to the picture
has. of course, been mentioned, the
tendency to promote more friendly
international relations. and the saw
ing of the potential costs of race
for naval supremacy. Should Eng
land. Japan and the United States
continue feverishly to build battle
cruisers and superdreadnaughts, in