The New York herald., 1922-02-04

economy and efficiency in the conduct oil
the Governments routine business. IT
is necessary that there shall be not only
attention by the executive to the work
of the coordinating boards but also eX-
ecutlve attention to the deartments and
establishments in relation to the CO.
ordinating agencies. 1t Is gratifying to
be able to say that thus far the relations
between the coordnating agencies and
the departments or establishments have
been highly satisfactory. The necessity
for the arrangement has been every
where recognized. A feeling of solid
arity in the Government business organ
iZation has grown up. and there is a
conviction that the interests of economy
and efficiency demand close cooperation
under central leadership.
Praise Is Bestowed.
so effective has been this depart
rnent during the four months of opera
tion through these agencies Of coordina-
tor that there have been practically no
conflicts between the coordinating boards
and the Government business organiza-
tion requiring decision by me as be-
tween any department on the one side
and the director Of the budget on the
/ ether I want you to know what great
| satisfaction there Is in saying this, and
| am going to add to 1t the statement
that in any case which may arise In the
| future where an honest difference of
opinion exists as to the beneficial ef-
feet of a proposed order of coordina-
ton. the matter will receive my prompt
attention Thus far we have had the
most harmonious cooperation, resulting
in the institution and functioping OF a
recrganized system of government prac-
hcally without friction. 1t is hoped and
Relieved there will be continuation Of
the same harmonious attitude in the
future
/ "The report by the Director OF the
Budget indicates that the Executive can
maintain, through agencies OF coordi-
nation, an effective control of expendi-
lures which will substantially eliminate
the occasion for deficiency appropria-
tions. It is true that emergencies.
changes Of legislative policy, shifting
business conditions or sp:cusable errors
of of Judgment will make necessary at
times deficiency appropriations but it
Is expected that hereafter these will be,
as compared with former years, very
greatly reduced.
"In making my acknowledgements on
this occasion desire to commend those
officials to whose energy, judgment and
ability the remarkable results outlined
by the Director of the Budget have been
so largely due. Under his direction they
have performed their work quietly, with
out seeking publicity or producing un-
necessary internal conflict. ! wish to
thank for his services Col. Henry c.
Smither, Chief Coordinator General
Supply. I want to thank his staff, Lieut.
Col McAdams, Lieut.-Col. McAndrews.
Lieut.-Col. Morey, Lieut. t-Col. Wright,
Lieut.. Commander Cairnes Lieut.-Com-
mander Stanley, Major Wainer and
Commander c. G.. Mayo"
Dawes Makes Report.
The report to the President by Budget
Director Dawes stated that the reduc-
tions effected in Government expendi-
lures this fiscal year amounted to $l,-
bOc, ,Oo0, 600 as compared with 1921. The
Director summarized his report as fol-
lows:
.'In connection with the complete re-
organization which has been made In
routine business methods. under which
the President has created by executive
order various coordinating agencies and
boards TO simplify and unity such busi-
ness. the detailed reports OF these boards
show that the reorganization Of gov
ernmental business conducted without
extra outlay with personnel selected
from present employees of the Govern
ment whose total compensation was
only about 100000 a year. have err
rected a direct and measurable saving
in money to the Government In about
four months of over $4,000. 900 through
interdepartmental transfers OF property
alone These boards have conducted and
supervised interdepartmental transfers
of property aggregating over $112,000,-
0O0
I'm additi to the large direct cash
savings made, which can be measured.
the indirect savings resulting from a
proper conduct of current business are
probably as large OF larger and should
constantly increase as the work OF the
boards is extended. The direct and in
direct saving to the Government due
to the operations OF these coordinating
boards during the last six months is
estimated by Col II. c. Smither. chief
coordinator, general supply. In his re-
port, as at least s100.000.000. Since the
institution of these coordinating boards
the average monthly rate of disposal
of surplus stocks of Government has
been increased by approximately s40.-
900, 900 a month above the average
monthly rate prior to that date.
These boards which the Presden,
has created to give the Director, in his
relation to the business administration
the same agencies Of contact and trans
mission of authority as obtain in any
private organization, involve no ma.
terlal addition 10 the expense OF gov
ernmental administration. are concerned
with no questions of policy save those
of economy and efficiency In routine
business and involve no transfer of au-
thority the location OF which has beer
fixed otherwise by statute. They are
non-partisan, impartial and impersona
In their efforts, and constitute at the
present time the bulwark OF economy
and efficiency in the handling OF the
} business of the Government.
Under the Presidents program foi
reduced expenditures the actual figures
received from the departments for this
! first six months indicate that the tota
, expenditures for the fiscal year, includ
J ing transactions in the public debt, will
not exceed the estimated figure Of
s3.967. .922.366. a reduction OF abou
: $3.50. 900. 900 under the estimates mad,
, by the heads of the departments with
} the expenditures for 1921. The total o.
/ actual ordinary expenditures for tn,
! last six months. including interest OF
! the public debt. were S1.s3T, ,907, ,4S2. 80
which ls in line with the forecast"
Director Dawes, depressing from hi
[ set statement, sprang q surprise wher
: he expressed with some heat violen
dislike for his critics. He said the bu
reau still Is Submerged" and likely e
J remain so for some time. Cen Dawes
said with pronounced bluntness that II,
1 =. q.