Richmond daily register. (Richmond, Madison County, Ky.) 1917-1978, 1922-12-04
FEDERAL AID BIG
CAUSE OF DEFICIT
President Says, In Submitting
Annual Budget to Congress,
and Detailing Expenditures.
tBy Associated Press)


taxes in future years would de.
pend largely on whether there
was to be a curtailment or ex,
pansion of federal aid in lines oi
research, improvement and de,
velopment.
Placing the estimated govern
1nent outlay in 1924 at $780,
S43.234, a decrease of about $780,
0GO,OOO, as compared with eSti-
mated for this fiscal year. Mr.
Harding called attention that two
thirds of this total was on ac-
count of practically fixed charges
such as the federal department.
national defense, pensions, world
war allowances and federal aid.
There was left, he said about
only one billion dollars in charg-
eS subject to administrative con
troll and against which he added.
the retrenchment policy of the
government had been directed.
While expressing the opinicr
that some further reduction un-
doubtedlv would result from /?
reorganization Of government
establishments on a more scien-
t1t1c basis the president SID this
alone would not affect such d
material cut in operating cost as
would Justify the expression OF
hope for considerably lessenine
expenditures in the years to come
Taking up the question of fed
eral aid, the executive said htat
this was a rapidly broadening
field of expenditure and that
there was question as to how
lar the government would parti-
cipate in it. He added that it
did not pertain to the normal
functions or operations Of the
business OF government.
These extraneous activities.'
he continued, ''have flowed from
laws enacted pursuant to popular
demand, and | take this occas-
ION to refer to them for the pur-
pose of showing that the taxa
tion which necessarily results in
providing funds to meet them is
d necessary incident to the full
filment of the popular demand.
In the efforts which have been
directed to reducing public ex-
pendltures contained in apparent
increasing state, county, muni-
cial Indebtedness, / am fear
ful lest this may be part contri-
butable to the expenditures made
by the government pursuant t.
tederal-aid laws, as many OF
those state laws require stat
contributions as prerequisite t
the extension of the federal aid
The summary for he budget iol
1924 as given to congress shows
an estimated receipt over exDcn-
ditures next year of $1S0,969.12s
as compared with the estimate
deficit of $275,O38.z12. for thi,
fiscal year.
The president said. however |
that he was hopeful that the es-
timated deficit for 1923 could be
reduced in the remaining seven
months and that the close Of next |
year, June 80, would show a bal
anced account. Estimated expen-
ditures of $3,1S0.S43.234. for 1924
which are exclusive Of the postal |
service, compared with estimated
appropriations of $3,078,940.331
for the same period. Mr.. Hard
ing explains that the expenditures
would represent actual cash with
drawals from the treasury. in
cluding some on account Of ap-
preparations in previous years.
Another deficit in postal oper-
ations were forecast for this wear.
But Mr.. Harding said that it was
estimated that through paper re-
adjustments there would be
surplus of postal revenues over
expenditures in 1924 amounting
to $952,439. for this years postal
costs were placed at $559,996.841.
ar an estimated deficiency of $31,
-502.5S0, as compared with an ac-
tual deficiency in the last fiscal
year of $64,346,234. The 1924
costs are given at $5S4,653151.
The president told congress
that an appropriation of SOS
552.SS7. recommended for the
army would provide a regular
force of 1900 officers and 125,-
600 enlisted men, exclusive of
the Philippine scouts, which is
the strength now authorized by
congress. and would enable the
militia bureau to increase the
strength o fthe aNtional Guard
from 10000 officers and men to !.