The New York herald., 1921-06-13
ECONOMY OR DEFEAT,
/. SAYS GOOD TO Cop.
Warns Administration That
Party Will Be Swept Out
Unless 1t Slashes.
HE OFFERS TWO PLANS
Would Cut Army and Navy
Bills if Disarmament
Is Agreed On.
HE OFFERS TWO PLANS
Special Despatch TO THE NEW YORK HEaArp
New York Herald Bureau.
Washington. ID. c., June I2.

Special Despatch TO THE NEW YORK HEaArp.
New York Herald Bureau.
Washington. ID. c., June 12.
The Republican Administration must
make a big reduction in governmental
expenditures with a consequent lifting
of oppressive war tax burdens or II will
be swept out of power
With this warning James W. Good,
for two and half years chairman OF
the House Appropriations Committee,
has left Congress because his private
purse demands II. Congress leaders
generally agree that Mr.. Good more
than any other one man In Congress Is
responsible for reductions In appropria-
tions In the last two years. He reduced
department estimates during his service
as chairman by more than -. SOC. .0O0, 600.
Mr.. Good believes that the problem OF
governmental economy and taxation re-
duction will transcend all other issues
In the next few years He warns that
II real results are not shown the Demo-
Gratis will make it the outstanding issue
in the Congress elections of 1922 and the
Presidential election OF 1924.
substantial reduction In appropria-
tions can come through these two main
courses of action In Mr.. Goods opin-
ion:
l. Continued cutting of army and
navy appropriations and their reduction
to an sirreducible minimum" IL an in
terna eiopai agreement on disarmament
is made.
q Withdrawal of the Government from
several fields Of business endeavor such
as the Shipping Board and a complete
reorganization of Government depart
ments with the elimination of unneces-
httra m
Good believes the budget system will ac-
complish great savings.
"In 1907 Congress appropriated for
national defence $17S. .941 900, while this
year the demands will exceed SS45,000,-
000," Mr.. Good said.
In the near future the annual ex-
penditure OF the Government must be
reduced to $4,000. 100000 or below.
realize that the problem is difficult be-
cause of the war overhang. Now the
interest on our public debt is almost
81 900. .000.0 a year. which is $3.50, ,0o0,-
900 more than the total cost OF admin
istrating the national Government ir
1907. In the next fiscal year we will
expend approximately S600,000,00 for
the relief OF soldiers Of the world war
and prior wars. This sum will be ex-
pended in pensions. vocational rehabili-
tation. disqualification and insurance In
IDENTITIES. In addition there is the sink
ing fund OF 250.000.00o for the gradual
reduction Of the public debt.
Therefore. before Congress starts tc
make any appropriations for current ex'
penses, we face an expenditure OF
| 1000, 600, 900 This will continue as g
| fixed charge for several years unless for
| eign nations pay the interest on the
| loans made during the war much faster
! than at present.
THE combination of the fixed charges
and the regular appropriation bills dur
ing the next fiscal year brings a fnan
! cial budget OF about $3.50. .000.0 Blu
| to this II will be necessary to add ap
| preparations to pay the losses. not ye
adjusted. growing out of Federal contro
and operation of the railroads during
the war. For this purpose the railroad
administration estimates that there viii
be required $4,000. 900 In the next fis
cal year and s225.0OO,Ooo for the yeal
| following.
'In all probability 800 900. 900 more
| for Federal aid to the States in roat
building will be appropriated great
burden will be lifted from the Fedora
Treasury II the Shipping Board is put
on n business basis. and there is reason
| to believe the new board will do So"