The Washington times., 1922-12-04
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SHOWS
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force now authorized by Congress,
and a navy Of $4,000 men.
President Harding declared the
retrenchment policy Of the Gov.
ernment since the signing Of the
armistice had resulted In q most
satisfactory reduction in the ex.
penditure Of public moneys" and
then put the question:
Can there be a reasonable ex-
pectation for further considerable
reduction in governmental expendi-
lures in the near futurs?"
This question is no doubt upon
the lips of many" he continued.
'"The burden of taxation caused by
the world war has borne heavily
upon us all, and 1t has been the
earnest desire OF the Government
to reduce this burden to the mini
mum consistent with a proper
functioning of the Federal services.
We have seen, however. that ap-
proximately two-thirds of the taxes
collected go to pay certain fixed
charges. over the expenditure OF
which there can be exercised little
or no administrative control. The
interest on the public debt. the
chief of the fixed charges. must
be paid This will be $3.50 .000,0
for the fiscal year 1924. constitut
ing nearly one-third of the total ex-
penditure Of the Government.
Among these are also certain per-
manent and indefinite appropria-
tions for various purposes. and Ger.
tain large annual appropriations
sanctioned by law and by public
opinion.
Closest Scrutiny Made.
after deducting these items there
II left approximately only one billion
dollars, out of which these normal
operating expenses Of the Govern
ment must be paid. 1t is against
this group of expenditures that the
retrenchment policy of the Govern
ment has been directed.
4 Never before In our financial
history has there been such close
scrutiny on the part of both the
Executive and the Congress Of every
item which contemplates expendi-
lures for the support Of the Govern
ment.
Not only have the departments
themselves set up agencies Of con-
troll both in the preparation Of their
estimates and over their expendi.
lures. but the pressure Of the Execu-
tive has been directed TOWARD effect
ing economies IN the ordinary gov
ernmental operations.
"A reduction in expenditures un.
doubtedly would result from q reor.
ganization Of the departments and
esta blishments upon q more scten-
tific basis. but we cannot look to
this alone to effect such a material
reduction In cost Of Government
operation as would justify the ex.
AraHAinYl fav. 81 Ia II,
lessening Of expenditures in the
Years to come.
In Research Fields.
There Is, however. another field
OF Government operation--a rapidly
broadening field Of Government ex.
penditure-which may be discussed
with profit to us all. refer tol
expenditures which are being made
from appropriations for Federal aid
In lines Of research, improvement
and development which, while hav.
ing no direct connection with the
operations OF the business Of Gov.
ernment. have grown to become a
recognized part Of it's activities. 1t
Is not easy, therefore, to divorce
from our minds the fact that con-
siderable Of the moneys appropri-
ated for the Government are spent
for those things which do not per
tain to the normal functions or op.
erations of the business of the Gov |
ernment.
There 10 a question as to how
far the Government should partici-
pate in these extraneous activities,
and I am frank to say that an
answer to the question as toi
whether we can look forward to
any further material reduction in
the expenditures Of the Government
in future Years depends largely
upon whether or not there will be
q curtailment or expansion Of these
activities. which have already added |
greatly to the annual drafts upon !,
the Treasury. These extraneous ac-
tivities have flowed from the laws |
enacted pursuant to popular de- |
nand, and take this occasion to |
refer to them for the purpose Of |
showing that the taxation which |
necessarily results in providing |
funds to meet them Is a necessary
incident to the fulfillment OF the
popular demand"
The President said he was con.
cerned over apparent increasing |
State. county and municipal In.
debtedness and expressed the fear |
that "this condition may be in part /
attributable to the expenditures |
made hv the Government pursuant |
TO It's Federal-aid laws, as many of |
these laws require State contribu. |
tions as a prerequisite to the ex.
tension OF the Federal aid"
Efforts OF Congressional commit.
tees to cooperate with the Execu-