Evening star., 1922-07-12

President Harding, as business
head Of the largest workshop in the
world. appealed to the administrative
officers of the federal government at
the third semi-annual business coI1-
ference, held yesterday in the New
National Museum, for the heartiest
cooperation during the present fis-
cal year in keeping expenditures
within the federal income. He in
Sited them to bring to him recon-
mendationS OF any activities or ex-
penditures that could properly be
Curtailed or eliminated. He warned
them that the budget now being pre-
pared for the next fiscal year will be
held by him strictly within the esti-
mated revenues.
Brig. Gen. Herbert NJ. Lord, the
new budget officer. taking his cue
his predecessor in office, stampeded
the conference last year with a burst
Of economy oratory. waving aloft
two Navy brooms. used a skeleton
shoeStrings, a drunken man ana a
biting dog to illustrate his economy
plea
Budget Economy Real.
Both the President and the budget
officer quoted the fiscal statistics,
showing income and costs of govern
ment. as proof that the economy pro-
gram of the present administration
and the operation of the scientihe
budget system are overcoming the
extravagant or slipshod expenditures
of the past and placing the big gov
ernment workshop on a strictly caSh
basis
There is not menace in America
today equal to the mounting state and
municipal debts, President Harding de-
rad of ha n nf
asking the cooperation of federal eX-
ecutives in practicing economy as an
example tot the nation. Debts of the
states and municipalities. the President
declared, were mounting to such heights
that there was no way of knowing the
obligations of the American people.
Referring to the operations OF the
budget bureau during the fiscal year
just ended, during which withdraWals is
from the Treasury were reduced oy
, S759. .000.0 900 from the earlier estimated
total Of s4,554, 900, 900 as "a record of
real achievement" the President de-
clared. that 1.-The prospective net deficit
of $425. .0O0. 900 for the current hscal year
is a challenge to US all. Receipts 1or
the current year, he stated, were eS-
timated at s3.O74, ,00O. 900. while expendi-
lures were placed at $3771 100000, an
apparent excess Of expenditure amount
ing to $697 200. 900. but offset to the
amount of S272. .000. 900 by the general
balance in the Treasury on June SV.
Actual Surplus Produced.
Experience of the past year. the
President continued. has demon
strated that there need be no undue
concern over prospective deficits, re-
calling that. while deficit of
Sc4.Oo0,o0O was forecasted last year
q surplus of 313,000.000 was realized
This was accomplished. he asserted
despite the fall in government re re
ceipts for the year of Sl.sloooo'oVo'
the equivalent of the reduction IN the
amount collected from the people.
Vet, because it pruned its expendl,
lures by s1.743 100000, it produced
an actual surplus.
This" ne said. lis certainly
gratifying accomplishment, but ne
added that expenses must be kept
within income this year. and calle
upon the governments executives for
still closer scrutiny OF their actiFl-
ties and expenditures
IF in your jurisdiction. the Presi-
dent said. you find activi.ass s, anu ha
expenditures that can properly De
curtailed or eliminated. / admonlsn
YOU to do it; if the laws do not
leave it within your power 10 90 this
submit it to the President for recon-
1nendation of congressional action
The business head of the government
does not and cannot contemplate or
expect expenditures this year Will
exceed income. If they do it will be
regarded as most unfortunate. and
therefore 1 bespeak your fullest CO.
operation"
Warns of Deficiency Estimates.
warning against deficiency es-
Inmates was sounded by the Presi-
dent, who declared that officials would
be held strictly to account for the
observance of the policy against such
demands upon Congress, which in the
past fiscal year in deficiency and sup
Elemental estimates subm1tted
amounted to S661 100000, although
many were unavoidable, he declared,
because of wartime conditions.
For the fiscal year 1924, the Presi-
dent announced receipts are estlmat-
ed at s3.19s, 100000. or approximately
$500 eOO0,0 900 less than authorized eX-
penditures for the current fiscal year.
We must all keep constantly in mind. "
he said, that the probable receipts
1or 1924 will not permit as liberal ap-
propriations as for 1923. In that con-
nection. l may say frankly to you
that 1 will not send to Congress es-
Inmates exceeding the probable re-
ceipts of the government, and must
warn you that unless you use your
pruning knives the executive will be
compelled to cut deeply the estimates
presented.
Our country Is one of the few in
the world which is now paying its
way as 1T goes, and i must regard
with disfavor any tendency to inter.