Evening star., 1922-02-03
s4,550, 600, 600 Scale Of Ex-
pense Is Chopped to S.
974,0OO,000, He Says.
HOLDS BUDGET SYSTEM
HAS JUSTIFIED ITSELF
Organization Has Set Example
Which Has Tended to Make
Thrift Fashionable.

afternoon the meeting of the govern
ment business organization, held at
Continental Memorial Hail. told repre-
eentatives of all the departments and
Independent establishments that it has
been possible to reduce the govern
ment's expenditures from a scale based
1n s4.5UO, 100000, to a scale of s3,974.-
100000.
1T is true that this showing is
based on the accomplishments of
only one-half of the fiscal year. but
it demonstrates the possibility OF
keeping the governments eXpendi-
lures measurably within the scale
fore c,strd. in advance of the fiscal
ears openirg. provided that new
ieglsia lon shall not be enacted to
",-.resss The expenses" the Tresi-
utnt said.
Budget Is Justified.
He stated that the report of the
director of the budget. from which he
had taken the above figures, ''indi-
Gates that even in it's formative
lied our most confident eXpecta-
tions.' The end has been brought
about as result of higher syste-
lnatization and better coordination
of business methods.
In accomplishing what has been
achieved in the first six months OF
Ibis organizations operation said
President Harding. the director tells
us that a staff has been engaged
representing a scale of expenditure,
not new, but newly applied, of only
S1U9,0 900; while the reports show di-
rect savings of s32,000.000 that may
be definitely emasured. and indirect
savings of S104,000,000. in a period OF
somewhat more than four months"
President Harding declared that he
could not but feel that the govern
ment has in the budget organization
set an example of care and thrift
that has helped greatly to make saw
ing fashionable"
The Presidents address at the
meeting of the government busi-
ness organization today follows:
Gen. Dawes, Ladies. and Gentle
men of the Government Business
Organizations:
This gathering is the second in
which have been brought Together
the heads of the various business
departments of the governments
organization. Something more
than six months ago the first
meeting OF this Kind Was held, to
signalize the Inauguration of the
budgetary system of control over
the detailed conduct Of govern
ment business. 1t is now possible
to survey the accomplishments of
this first half-year period. and L
think we may well congratulate
ourselves upon the showing.
The report of the director of the
budget is in your hands. 1t indi-
Gates that even in it's formative
narin1 ha Sfoy Hac
fed our most confident expecta-
tions. AS result Of the higher
systematiZation and better co-or-
dnation OF business methods the
director notifies us that, at an al
most insignificant cost. it has been
possible to reduce the govern
ment's expenditures from a scale
based on s4,550, 100000. which was
asked for the executive depart
ments and independent establish
ments for the current fiscal year.
to a scale of s3,974.OOO,0 900. 1t is
true that this showing is based on
the accomplishments of only one
half of the fiscal year. but it DEM
onstrates the possibility of keep
ing the government's expendi-
lures measurably within the scale
forecasted in advance of the fiscal
years opening. provided that new
legislation shall not be enacted to
increase the expenses.
Direct Saving OF $:l:.OOO,OOO.
This gathering has been sum-
mOned in pursuance of a policy of
calling together the business heads
of the government, precisely as
would be done from time to time
in any business organization. Here
the President of the business
establishment can meet those who
are in direct charge of the busi-
ness machinery. In order to insure
continuing contacts with them
throughout the business year
there has been created by execu-
tive order the co-ordinating
boards whose reports are in your
hands. In accomplishing what
has been achieved in the first six
months of this organizations
operation. the director tells US
that a staff has been engaged
representing a scale of expendi-
ture. not new, but newly applied,
of only 100000; while the reports
show direct savings of s32, ,000.O 900
that may be definitely measured.
in periou OF somewhat more
than four months.
The various co-ordinating boards
were created, on recommendation
of Gen. Dawes. for the purpose of
binding together in common plan
p1 unlncdtlOH tHe ucpdTlI1ef ana
Independent establishments which
formerly. in large measure, oper-
ated independently of one another.
Through these co-ordinating
boards, agents representing the
executive, working under the su-
pervision of the director of the
budget, it is possible to impose
and execute the general policy of
the executive. involving co-ordina-
ton. economy and efficiency. II
there were any miSundersta ndings
in the beginning as to the method
and purposes in bringing about
this cooperation, they have now
happily been substantially all dis
sipated. 1t is now definitely un-
derstood that in detailing. by exec
utive order, any offlcer or employe
of the government to serve as q
co-ordinator or as aid to the di-
rector of the budget, It is the in
tention that there shall be created
q primary responsibility to the
President as the head of the busi-
ness organization. That respon-
sibility is now recognized not only
by the detailed officer or employe,
but by all the departments and in
dependent establishments.
Sure OF Loyal support.
In the beginnings Of this govern
mental reorganization there were
some who feared that IL we detail
ed from each department or estab-
lishment some person employed
therein to serve with the director
of the budget there would be Gre
ated a sort Of double responsibility
and divided LOYALTY which might