The New York herald., 1922-02-04


New York Herald Bureau
Washington, ID. c., Feb. 3.
President Harding, addressing the
heads of the business departments ot
the Government in the second meet
ing of the kind since the creation oi
the budget system. declared to-day
the scale of expenditures for the pres
ent fiscal year had been reduced from
$4,000 100000 to So 974,O0O,Oo a saw
ing of s576,ooO,O0o.
The President, standing in the audi
torium of the Continental Memorial
Hall, told more than 500 Government
fiscal and budget officers he expected
even further economies in Govern
ment operation. He made it plain also
that those who form the business or
ganization, and are answerable to the
President for their acts, will be pro-
tected to the limit by him in their
loyal purpose to prevent waste of pub
lie funds in unwise purchases or prof.
ects.
Seated back of the President in the
hall were Gen. John j. Pershing, Sec
retary of the Treasury Mellon, Secre-
tary of the Navy Denby Secretary OF
Agriculture Wallace, Vice-President
Coolidge and Assistant Secretary Of the
Navy Roosevelt.
This gathering" the President said
''is the second in which have beer
brought together the heads of the vari-
Gus business departments Of the Gov
ernments organization. Somethjng
more than six months ago the first meet
ing of this kind was held to signalize
the inauguration Of the budgetary sys-
tenn of control over the detailed conduct
of Government business. 1t Is now DOS
sibe to survey the accomplishments OF
this first half year period, and l think
we may well congratulate ourselves upor
the showing.
The Economies Made.
"'The report of the Director of the
Budget is in your hands. 1t indicates
that even in it's formative period the
budget system has justified our most
confident expectations. AS a result oi
the higher systematization and better
coordination of business methods the
Director notifies us that, at an almost
insignificant cost, it has been possible
to reduce the Governments expenditure;
from scale based on $4,550,00O,OOo
which was asked for the executive de-
partments and independent establish
ments for the current fiscal year, to 9
scale of $s,794, 100000. 1t is true thai
this showing Is based on the accomplish
ments of only one-half of the fiscal year
but IL demonstrates the possibility OF
keeping the Governments expenditures
measurably within the scale forecast II
advance of the fiscal years opening
provided that new legislation shall not
be enacted to increase the expenses.
This gathering has been summoned
in pursuance of u policy OF calling to-
Eether the business heads Of the Govern
rlent. precisely as would be done from
time to time In any business organiza-
ton Here the president of the business
establishment can meet those who are
in direct charge of the business ma
chinery In order to insure continuing
contacts with them throughout the busi-
ness year there has been created by
exc cutive order the coordinating boards
| whose reports are in your hands. lr
! ACCOMPLISHING what has been achieved
in the first six months of this organiza-
toms operation the director tells us thai
a staff has been engaged. reporting
scale of expenditure, not new but newly
applied. of only 100000; while the re-
ports show direct savings of 49,, 00C
|
Indirect savings of $i04. 200. 900, In a pc
rio0 of somewhat more than four months
Through these coordinating boards
agents representing the Executive. work
ing under the supervision Of the director
of the budget, 1t is possible to impose
and execute the general policy of tn,
Executive involving coordination, econ
omy and efficiency. II there were any
MISUNDERSTANDING in che beginning al
to the method and purposes in bringing
about this cooperation they have nov
happily been substantially all dissipated
II is now definitely understood that II
detailing. by Executive order. any Officer
or employee OF the Government to serv,
as a coordnator as aid to the director oi
the budget, il is the intention that ther'
! shall be created primary responsibility,
to the President as the head of thu
business organization. That responst
bility is now recognized not only by th'
! detailed officer or employee program
Every person so detailed must under
stand and be assured that his service
in this capacity will not be permitted
to involve him in any embarrassment a!
to his present or future status in Tho
department or establishment under which
he formerly served.
|
Il want you all TO be very certain that
It will be my purpose to protect every
one of you in his career and propei
activities. In giving you this assurance
know / can be confident of the loya
cooperation of all the departments and
establishments.
This Is a good time to have II unani'
mously understood that we all serve on,
and the same Government. and the com
mon good. not departmental advantage
Is the end at which all OF us must aim.
ION the other hand. l expect that those
who are detailed on this coordinatinl
work viii keep fully in mind as n guide
10 their actions the rights, the require
ments and the jurisdictions of the de
partments or establishments which the.
represent. In the Inauguration of tn,
budget system IL was the delberat
Judgment of the director that the bes
results would be obtained by employing
as coordinating agents persons assgne,
from the departments or establishment
equipped with thorough knowledge o
their requirements. The wisdom OF tina
determination has already been demon
strated. Ie believe IL will be and Is tn
only method by which to produce sucl
results as have been presented In TIL
report which has been placed in you
Vbands to-day.
A Constant vigilance and inteldgen
activity on the part OF the coordiratln,
e.