Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1922-12-04
TRANSMITS ANNUAL FEDERAL
BUDGET FOR THE NEXT FISCAL
YEAR IN HIS MESSAGE TODAY
Reorganization OF Govern
ment Establishments VIII
Reduce Expenditures Ia
1924, He Declares; Sees
Expansion OF Federal Aid
AS Hindrance To Making
Reduction, In Future
Years.

Washington, Dec. 4.-CongreSO
closed Its two W. ks extra session ana
started its regular session today with
an intervening period of only ten min
utes. 3s
By resolution the end of the special
session which began November 20,
was closed at 1l:50 o'clock and the
new and final session of the 7th con-
gress began at the statutory hour Of
noon.
Proceedings today were largely the
routine Of winding. up the old and be-
ginning the new session. which runs
10 o'clock and the house at II. In its
brief sitting, the senate formally
dropped the Dyer anti-lynching bill
and confirmed about 100 nomina-
tions.
The principal business of the new
session today was receipt of the an
lual budget.
Tomorrow President Harding is ex-
oected to deliver his message outlin-
.ng the administra tons program with
The shipping bill, farm credit legisla
tion and annual appropriation bill as
the major feature in prospect.
Washington. Dec. 4.-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 government expenditures
and in taxes in future years would de-
pend largely on whether there was to
be a curtailment or expansion of fed
eral aid in lines of research, improv-
ing and development.
Estimate Reduced $500, 900, 900
+ Placing the- estimated government
outlay in 1924 at $3,1s0.s43.234. q de-
crease of about 100000, 200 az COM
pared with estimates tor this fiscal
year, Mr.. Harding called attention
that tworthirds of this total was on
aGSQunt Eef practically fixed charges,
such as the public debt, national de-
Tense, pensions, world war allowances.
and federal aid. There was left, he
said, only about one billion, dollars in
charges subject to administrative con !
troll and against which. he added. the
retrenchment policy Of the govern
ment had been directed.
. While exposing the opinion that
some further reduction undoubtedly
would result from q reorganization of
government establishments on more
scientific basis, the president said this
alone would not effect such a material
cut In operating costs as would justify
the expressing of hope for a consider
able lessening Of expenditures in the
years to come.
Federal Aid.
Taking up the question Of federal
aid, the executive declared that this
was a rapidly broadening field OF ex-
penditure and that there was a ques-5
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 busi-
ness OF government.
These extraneous activities" he
continued, "have flowed from laws
enacted pursuant to popular demand.
them for the purpose Of showing that
the taxation which necessarily results
in providing funds to meet them Is a
necessary incident to the fulflllment
Of the popular demand.
I'm the efforts which have been di-
rected to reducing public expenditures
have been much concerned in ap-
parent increasing state. county and
municipal Indebtedness and am fear
ful lest this condition may be in part
attributable to the expenditures made
by the government pursuant to it's
federal aid laws. as many OF these
state laws require state contributions
as prerequisite to the extension Of
the federal aid" ]
Excess OF Receipts. q
the summary OF the budget for
1924, as given to congress, shows an
estimated excess Of receipts over ex-
as compared with an estimated de-
'ficit Of $273,e3S.712 for this fiscal
year. The president said, however,
that he was hopeful that the estima-
ted deficit for 1923 could be reduced
In the remaining seven months and
that the close of the year next June
80 would show balanced account.
Estimated expenditures Of $o.1so.-
S43,234 for 1924. which are exclusive
Of the postal service compare with
estimated appropriations Of $3,O7s,.
940,331 for the same period. Mr..
Harding explained that the expendi-
lures would represent actual cash
withdrawals from the treasury, inclu-
ding some on account OF appropriai
tions in previous years. h
Predicts Postal Delicit. I
Another deficit in postal operations
was forecast for this year. but MIR.
Harding said it was estimated that
through proper readjustments there
would be q surplus of postal revenues
over expenditures in 1924 amounting
to $952, 49,, For thus year postal costs
We're placed at $559,s96.54 Or an Is !.
timated deficiency Of $3l .s02,57H as
compared with m actual deficiency in
the last iscal year OF $64.a48.234, The
1924 costa& are given at $t84. .663,lk1.
The president told congress that
an Appropriations of $26s.652.S87 res
commended for the army would pro-
vide for q regular force OF 1900 Of
ficers and 125. 900 eplistsd men, eI-
elusive OF the Philippine scouts, which
y the strength now s authorized SIS by
congress and woY1d enable the malitia
bureau to tncrea4e the strength OF fho
national guard from 100, 900 ofMeorA
and men to ls215,00p oficArs ana man.
For the army air 5seryiee ~ 1ss7l,EeD
10 proposed. or SS11 800 itas than apr
propriated this yeAr. Mr.. HardinI
said this sum would permit this ssfxs.s
Ice to operate sfhcienfiy In aecordanc6
With existing. policy. II
419e -; ;So3 Foe Navy. IA
For the navy y31e, 8SO. .eSSsie asked.
This amount. tho president .aass9ts1.
would provide for the present enlisted
personnel of ess 900 men, maintain Oh
lContinued On yAge sae,