New-York tribune., 1922-02-04
Bulge Saved
1876 Millions,
Harding Shows
tCcn,Inusd from page oucl

at them. There we're about 200 eff
cials and employees present.
The President called the meeting to
order and with no prelminarics
launched INTO his speech.
The Presidents Address
The President said in part:
"The report Of the Director Of the
budget indicates that even in It's
formative period tho budget system
has justified our most confident cX-
pcctations As result OF the higher
systcn,atizn and better cc-ordins-
tion of business methods. tho director
notifies US that, at an almost insigniii-
cant cost. it has boon possible to re
ducc tho governments expenditures
from a scale based on $4,000 900 ,000,
which was asked for tho executive dc
partmcnts and independent establish
mcnts for the current fiscal year. to
scale OF $3 3,97I 900 900. II is true that
this showing is based on the accom-
p)ishmcnts of only ono half Of the is-
cal year, but it demonstrates tho pos
sihility of Keeping the governments
expenditures mcAsurably within tho
scale forecast in advance of the fiscal
Years opening, provided that new
ieEis station shall not be enacted 10 in
crease the expenses
"This gathering has been Summoned
inpurSusncc OF policy of calling to
gcthcr the business heads Of the gov
eminent. precisely rs would b. done
from time to time III any business OF
ganization Here the president of
tho business establishment can mcc;
those who arc in direct charge Of tho
business machinery. In order to in
sure continuing contacts with them
through hout the business year there has
been created by Executive order the
co-ordinating boards whose reports ave
in your hands. In accomplishing what
has been achieved in the first six
months of th's crganization's operation,
the director tells Us that a staff has
been engaged representing a scale OF
expenditure. not new but newly ap-
piled. Of only 500 900, while thc ,.s-
pcrts show direct savings Of $50 900
eco that may be definitely measured
and indirect savings Of 100000 900. in
period OF somewhat more than four
moths.
FIRST Loyalty to Budget Head
In the beginning Of this govern
mental reorganization there were some
vino feared that if we detailed from
each department or establishment some
person employed therein to serve with
the Director of the Budget there would
DC created a sort of double rcsponsi-
bllIty and divided loyalty which might
prove destructive Of the highest eli
clency. It was feared. in short, that
these aids TO the director might hc
moved more by their loyalty TO and
interest IL the department OF establish
meNt with which they werc officially
connected than b. their obi igation to
the budgetary establishment Il is of
me utmost Importance that versions
tnHs detailed shall understand most
definitely that they are expected to
extend thtir loyalty and obligation to
tac general policy Of tho budget bu-
;cau as an agency for the Imposition
OF Executive plans.
I'm practical operation it is mani
testify impossible to find liAsor off
GERS for this service outside tho varj-
Gus departments. because these officers
must be thoroughly familiar with the
business OF the departments. Other
wise they could not deal intcilirentlv
with II. The liaison officer must. ~
short. be thoroughly falGiliur with the
affairs Of the department he represents
and az the same time devoted to the
purpose OF tnls co-ordination and econ
omy program Every person so de-
tailed must understand and be assured
that his service in this capacity will
not be permitted TO involve him in
any embarrassment as to his present
Or future status in the department or
establishment unGel which he former
Is served.
"'This is a good time to have it unan-
'iNouslv understood that we all serve
one and the same governments and the
common good, not departmental advan-
tagc. is the end AT which all Of us
must aim
System Works Without Conflict
so effective has been this depart
mcnt during the four months Of opera-
ton through these agencies Of co-ordi-
nation that there have been practically
no conflicts between the co-ordinatinr
boards and the government business
organization requiring decision by me
as between any department on the orc
side and the Director Of the Budget on
statement that IN any case which NAV
ARISE where an honest difference of
opinion exists as the beneficial effect
o! proposed order OF co-ordiration
the matter Will receive my prompt at
tcnticn.
"Thc fact that it las been possible
TO reduce the scale Of expenditures so
greatly as VIC have noted must con
vince US of the possibility. if estimates
'iN HidNS WIN proper lntPlllRCrcp and
then there is the necessary care in cX-
pendlturcs. of substantially avoiding
deficiency appropriations
III is true that the reports no~ be-
fore US cover only onc-haf Of the cur
rent fiscal year. The eXigencjes Of the
coming months may modify somewhat
the favorable showing which we now
note with so much satisfaction. But.
on the other hand, the Director OF the
Budget expects that new attention will!
be given by all Of you to the continuing
revision Of expenditures. with the view
to still further economies wherever
they are possible.
"ln business SO great As that of
the national governments, unexpected
receipts Will not infreauently swell the
total Of calculated revenues 1t seems
likely that this will be true during tn.
current year. But. desrite this nossi-
blilty, It now seems probable that the
restrictions upon expenditure which
have been possible by reason of the
Administration general policy and
your splendid cooperation would have
resulted in a surplus Of receipts for
the year. The prospects OF such a
surplus, when compared with the est
mated dehc cncy OF S2i 100000 that
was outlined in the budget figures sub
mitted 20 Congress in December. is
certainly an occasion of much satisfac-
ton to ali Of US