The New York herald., 1922-07-12

New York Herald Bureau,
Washington. ID. C., July IL.
President Harding, addressing to-
day .I.e Cabinet officers and heads of
bureaus at a meeting as the BOARD
of directors OF the Federal Govern
ment, warned them of possible deficit
in the next fiscal years that will begin
July l, 1923, unless rigid economy is
exercised.
Occupying the platform with Brig
Gen. II. NJ Lord. successor to Gen.
Charles G. Dawes as Director of the
Budget, the President called attention
to the fact that the estimate of re-
ceipts for the next fiscal year is ap-
proximately $500, 900, 900 less than the
total appropriations for the present
fiscal year. which began on the first
day of the present month.
Secretary of state Hughes, Secretary
of War Weeks. Gen. John J. Pershing,
Secretary of Agriculture Wallace and
Secretary of Labor Davis wera among
those on the platform. In the audi
ence were heads of bureaus, assistant
secretaries and other important Gov
ernment officials.
After the address Of President Har-
ding and, Gen. Lord all those present
arose and made a standing pledge to
srrnort the policy of economy.
Jn ao1ition to announcing the sue
cessful working of the budget as estab-
iished by Gen. Dawes and advising the
Ns sfessity OF economy to meet the con-
dfrsnz y the present and the next fiscal
year President Harding called attention
to tlrs example which the operation OF
thersysstm is giving to other nations
ard to States and municipalities in this
cotAtry. Mounting expenditures in
States and cities he described as one OF
the greatest menaces the country faces.
No Reference to Bonus.
In the outline of the Governments
finances by the President and described
with more detail by Gen. Lord. there
was no reference to the impossible de-
mand that would be made upon the
Treasury il the cash bonus aid on the
Treasury were successful With appro-
rriations already pared to the bone and
with the estimated revenues for the next
fiscal year more than half a million
dollars less than the appropriations for
the present fiscal year, the inference was
plain that the Treasury will stand no
additional strain.
Only by the successful operation OF
the budget system. which has already
made a remarkable saving in Govern
ment furds will the Government be
able to bridge the difference In estimated
receipts for the next fiscal year as COM
pared with the appropriations for the
present fiscal period
President Harding paid a tribute TO
Gen. Dawes, who inaugurated the budget
system.
Il know" he said. "how deeply you
regret the going of this charming and
fascinating personality represented by
Gen. Dawes. who led us in establishing
the budget system"
Last August the President added,
'it was estimated on information fur
nished by those speaking for the spend
ing agencies OF the Government that
Withdrawals from the Treasury for the
fiscal year just terminated would be
s4,554 100000 The last Treasury esti-
mate shows this figure was reduced to
s3,795. 100000. reduction Of 759.-
100000.
lie pest eSIlIndtc or TeCelptS Tor the
current fiscal year is s3,0740 000. 600
while estimated expenditures are placed
at s3.771 100000, an apparent excess of
expenditures amounting to s697, ,00O, ,000
Calls on Experience.
but the last years experience has
demonstrated that we need not be un-
duly concerned over such prospective
deficits when we have the benefit OF
the budget organization and of your
cooperation. Last year in the annual
report on the budget a deficit of s24,-
100000 was forecasted; instead we
closed that fiscal year with a surplus of
receipts over expenditures amounting to
s313,0o0.0 600. This despite that the Gov
ernment's receipts in that year fell off
s1.51b, 100000. That Is. the Government
reduced by s1,515, 100000 the amount
which it collected from the people, and
yet. because It was able to prune it's
expenditures by si.743, ,000.0 900, 1t pro-
duced an actual surplus.
'The total estimated appropriations
for 1928, including supplementals, were
s3.911,44S,000. including the postal SER
vice, while total appropriations amounted
10 s3.T47,035 900. reduction Of 1884,
$4,000 from the estimates exclusive of
about S6o000.0o0 not estimated for in
tnc DuuEet. Inc ullertnCe Is relatively
small considering that estimates for the
fiscal year just closed we're nearly
81 900. 000. 900 more than the appropria-
tions. II Is hoped that with more ex-
pericnce estimates and appropriations
may be brought still closer together.
The preparation OF estimates for the
fiscal year 1924 is the next immediate
duty. For that year estimated receipts
are s3.19s 100000, or approximately
e600,000.000 less than the appropria-
tions for the current year plus authori-
zations for expenditures not included In
the appropriations. We must all keep
constantly in mind that the probable
receipts for 1924 will not pererit az
liberal appropriations as for 1929. In
that connection 7 may say frankly to
you that I will not send to Congress esti-
mates exceeding the probable receipts of
the Government. and I must warn you
that unless you use your pruning knives
the Executive Will be compelled to cut
deeply the estimates presented"
1z DIE IN SPANISH WRECK.