Evening star., 1922-12-04
Believes Financial Recon-
struction of Past Two Years
Biggest in History.
FURTHER CUTS DEPEND
ON FEDERAL AID CLASH
Lowest Figures Declared About
Reached. Although Further Slight
Reductions Are Expected.

President Harding in transmitting
the annual federal budget for the
next fiscal year frankly told Congress
today that whether there was to be
any material reduction in govern
ment expenditures and in taxes in
future years would depend largely
on whether there was to be a curtail-
ment or expansion of federal aid in
lines Of research. Improvement and
development.
Placing the estimated government
outlay in 1924 at s3.1SO.S43234, a de-
crease of about 100000, 900 as COM
pared with estimates for this fiscal
year. Mr.. Harding called attention
that two-thirds of this total was on
account of practically fixed charges.
such as the public debt. national de-
fense. pensions. world war allowances
and federal aid. There was left, he
said. only about one billion dollar rs
In charges subject to administrative
control. and against which. he added.
the retrenchment policy OF the gov
ernment had been directed.
Further Reductions Likely.
While expressing the opinion tina,
some further reduction undoubtedly
would result from reorganization
or government establishments on a
more scientific basis. the President
material cut in operating costs as
would justify the expression of hope
for considerable lessenins of eX-
pendilures in the years to come.
Taking up the question of federal
aid. the executive declared that this
was a rapidly broadening Iie!d of eX-
penditure and that there was ques-
ton as to how far the government
should participate in it, He added
that it did not pertain to the normal
functions or operations OF the bust
ness or government.
President Harding's message trans
mittins the budget to Congress follows.
To the Congress Of the United States:
/ transmit herewith the budget Of the
United Safes for the fiscal year ending
June 30. 1874. which is summarized in
the following statement:
budget Summar..
Exclusive Of postal revenues and
postal expenditures paid from postal
revenues)
To.al receipts estimated. 1924. s3.3s1.-
actual 1922. s4,1Os. 1O4, ,15o.s4.
Total expenditures dncluding reduc-
to be made from ordinary receipts). es-
timiled. 1924. s3.1sO.e43.234; estimated,
1923. Ss,!03,SOl.671: actual. 1922. $780,
302, ,499.s4.
Excess of expenditures estimated.
1924. -: estimated, 1923. STA, $685.
Excess Of receipts estimated. 1924.
$1s0.969.125: estimated, 1923, -; ac-
tual, 1922. s313.S01. .651.1O.
Excess of Receipts.
In the budget for the fiscal year
ending June 80. 1923. transmitted to
Congress December S. 1921. the es-
timated receipts for the fiscal year
timated expenditures $3.967.922. .366,
thus forecasting an apparent excess
Of expenditures over receipts of SEA-
46S.703. At the close of business on
June 80. 1922. 1t was found that the
actual receipts for the fiscal year 1929
expenditures $3.795,30o.4 .499.s4. making
an excess of receipts over expendi-
lures of s313.sO1,6511o. That we
closed the fiscal year 1922 with a
surplus of $313.S01.651.10 instead Of
an estimated deficit of $24.468,7O3 was
0uo In no Sm8ll measure 10 the 1act
that at the beginning of the fiscal
year 1922 system of financial con-
troll was established in the executive
branch of the government under the
budget system. Immediately upon
the commencement of the fiscal year
1922 executive pressure for the closest
economies was brought to bear upon
the business organization Of the gov
ernment. For the first time in the
history Of this country co-ordination
ness Of the government and the de-
partments and establishments thus
brought together in a common effort
for economy.
While the estimate Of receipts and
expenditures for the fiscal year 1923
as made at the time of the presenta-
ton of the budget in December. 1921,
indicated that the receipts would be
$3,33S,1s2,750 and the expenditures
S3.5O5, 754,727, a revision OF the pro-
spective receipts and expenditures
made on July 1, 1922, the commence
meEt of the fiscal year, indicated hat
the receipts would be $3,073.S25.311
and the expenditures $3.771, ,258,542.
That revised estimate indicated an
excess of expenditures over receipts
of s697,433,231.
Revised Estimate.
AS a result, however. of the opera
tions Of the first five months of the
current fiscal year. a revised estimate
of receipts has now been made show
ing a total of $3.429.S62,959. The con-
siderable increase over the July esti-
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