The Washington herald., 1922-10-18
SECY. HOOVER
SHOWS CUT IN
u. 5. EXPENSES
Urges Acceptance of Re
organization Plan i'm
Grand Rapids Talk.

GRAND RAPIDS. Mich. Oct. ~.
Reorganization of the government
to eliminate overlap and waste
must be accepted. in the opinion
Of Secretary of Commerce Hoover.
il the administration is to complete
its economy policies.
THE adniniSr -atIoa has the firm
purpose of securing such reorgan-
ization.' Secretary Hoover DECLARED
here tonight in an address on
Eighteen Months OF Business in
Government" before a Republican
mass meeting
"As a result of hammering for
economy in every direction" he
said, the expenditures Of the Fed
eral government have been re-
duced from $3.50. 900, 900 for the
year ending June so. 1921. to an
expenditure not exceeding f3.77O,-
000,0 for the fiscal year ending
June 80. 1922. for which appropria-
tions have already been made and
the budget settled. There has,
therefore. been a reduction in ex-
penditure by s1,776, 900 900.
"In the meantime. between March
3. 1921. and September 80. 1922.
the national debt has been reduced
from S24.O45. 100000 to s22.Sl2. .000.-
600. a reduction Of Sl,233. .0oO. 900.
Taxes Are Reduced.
The second outstanding mark
to be attacked was the reduction
of governmental expenditure and
taxes. Departments of the govern
mcnt have been vigorously reor-
2anized. Over $4,000 civilian en-
ployes have been discharged. The
army has been reduced from 225.-
900 to $4,000 men. We have re-
duced the navy from 134 900 to ga
600 men. The budget system was
created. and accounting and co-or-
dination of governmental expense
was established for the first time.
Taxes have been reduced by over
$500. 100000 by repeal of the nui-
sance taxes and other war taxes.
There remains much to be done.
but eighteen months is too short
a time to do everything.
There are some who visualize
our Federal expenditure only in
the gross sum and who from this
assume that by some fairy wand
several billion more can be cut OF.
Better understanding OF the char.
acter of our expenditures would
correct much misinformation. OF
this years budget of some ss.77o.-
900, 600. We will find that about
$500, ,000.0 is for clearing up war
wreckage which will not reoccur."
Reviews Coal Crfsis-
In regard to the recent coal
strike and machinery built up to
handle the situation, Mr.. Hoover
said. in part:
Tn the absence Of any legisla-
tion or any Constitutional basis for
controlling profiteering. a confer
ence of the producing operators was
called at this department, and as
result of these conferences IL was
agreed that the price of coal should
not be advanced beyond the Gar
field price plus a reasonable al
lowance in each district for the DIFF
ferences in wage scale and costs
which had ensued since the war.
These prices varied from s2.25 to
$3.50 per spot run of mine coal at
the mine Approximately IS per
cent of the producing districts VOL
unfairly undertook this arrange
ment and the price of spot coal In
these areas was restrained to an
average of under s3.25. whereas in
the districts which had refused to
enter the agreement, prices rose to
as high as SO per ton at the mines.
An agreement with the majority of
wholesalers and retailers provided
that there should be no increases
in coal in stock.
Despite the districts who refused
to cooperate and the occasional
bootieggers in coal, the average
price of spot coal for the entire
period of the strike. as shown by
the Coal Age" was ss.7o. while
the average price of contract coal
ConfSAaad On PaHa Hsea.