The New York herald., 1921-06-29
Statement by President.


THE NEW York HERALD prints here
with the full text Of President Harding s
statement promulgating this new theory
of Government expenditures;
The President does not assume. as
has been the custom under the old sys-
tenn with individual departments that
the minimum of governmental expendi-
lures in the year is the amount fixed by
Congress in its appropriations. This
applies to appropriations already made
for the fiscal year starting July J. 1871.
lie has invited the Director of the Bud
get to determine Immediately what is
the minimum under the budget machin-
cry with which the Government can be
operated during the next year. AS
would be done in any ordinary business
being confronted with the necessity Tor
economy, the President has therefore
directed the Director of the Budget to
prepare new budget for the depart
ments to work by during the fiscal year
ending June so, 1922.
The maximum of this budget is ex-
pected to be below the minimum amount
provided. for IN existing Congressional
appropriations.
"The President also interprets Section
200 OF the budget law as authorizing the
Director Of the Budget to prepare for
his information an alternative budget
for the fiscal year ending June 80, 1928
in which an effort will be made to esti-
mate the financial economies incident to
the general plan for the reclassihcation
and regarding Of governmental activities
as suggested by the Congressional joint
commission on the reorganization OF the
administrative branch OF the Govern
msnt.
1T is hoped that the new budget in
tentative form for the departments to
work by under existing appropriations
will bo completed within thirty days.
AS a step thereto he has called meet
ing Of the administrative organization
OF the Government, including the Cab
met heads. chief clerks. chiefs and as
sistant chiefs OF bureaus, at which his
plan will be announced in detail by the
Director Of the Budget
Will be No Secrecy.
The Administration proposes that the
operations of the economy squad
the moves that are made in the CAM
business basis-shall be in the open.
The people are to be taken into the full
confidence of the Government. so that
they can Judge for themselves what
progress is being made and how efficient
iy the work is being done. The Presi-
dent wants the country to see for itself
what a difficult job has been undertaken.
He believes the best way to gain the
help and sympathy of the public is by
holding no star chamber proceedings.
1t would be impracticable to admit the
general public to the meeting of the
Cabinet and bureau chiefs with the
President and Mr.. Dawes tomorrow. be-
cause the auditorium of the Interior De-
partnent Is not big enough to accommo-
date a great crowd. But all the Wash
ington news correspondents will be ad-
mitted and provided with tables for writ.
ing. and no restrictions will be placed
upon their reports of the proceedings.
The Navy Department is wasting
$4,000, 900 a year by keeping many
virtually obsolete war vessels in com
mission with large crews aboard, Rep
resentative Thomas S. Butler (Pa.)
chairman OF the House Naval Affairs
Committee. said to-day.
| To. force economy in this respect, Mr.
Butler announced that the naval affairs
committee probably would make a thor
ough inquiry into the condition OF nava
vessels and would frame bill directing
the sale or junking of considerable
number Of ships which have little or nc
value in time of war.
Mr.. Buffers charges that the Navy
Department is wasting a huge sum In
this manner were substantiated by Rep
rcsentative Patrick Kelley (Mich), In
charge of the naval appropriation In the
House.