The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1922-12-04
BUDGET BACK
TO PRE-WAR
EXPENDITURES
Harding Fixes Needs
at $4,000 900
By LAURENCE M. BENEDICT


WASHINGTON, Dec president
Harding today sent special message
to congress announcing that the fed
eral budget for the next year, begin
ming July l, 1928. will be approxi-
mately three billion dollars-the low
est yearly expenditure of the govern
ment since the days before the war.
Praising the rigid economy which
the budget bureau has enforced dur
ing the last year, the president point
ed out that the government is now
back to pre-war days in general ex-
penditures. OF the three billions
asked, two can be attributed to the
war He made it plain that his ad-
ministration will continue to fight for
greater economy. .
Taxes Unchanged
The president indicated that be-
cause nearly two thirds of the govern
ment's yearly bill represent the fixed
charges resulting from the war it will
be difficult to reduce taxes in the
near future.
The budget system, the president
declared was "the greatest reform in
our financial history"
Government expenditures during
the next fiscal year will be $S,1S0.843,-
235, a reduction of nearly $600,000,000
as compared with the expenditures OF
the current year. Specifically the ex-
ecutive asked for appropriation of
S3,07S, $40, ,331.69, the difference be-
tween appropriations and expend1-
lures being attributed to the fact that
congress makes some appropriations
which carry over from year to year.
Estimates Surplus.
A surplus of s1S0.969,125 in the gov
ernments financial operations for the
next fiscal year was estimated as COM
pared with a possible deficit this year
of S273,93S,712.
The total receipts of the government
| during the next fiscal year was estl-
mated at $3,361, 812 359 as compared
with $3,429,959. These estimates
were based on no reduction of taxes
land include a back tax collection OF
approximately $500, 100000.
| Outstanding in the budget is the ap-
preparation for national defense which
total $546, ,433,S The army asked for
/ $256,552,S77 which would provide for
1 a regular army of 125,000 men and H.
| 900 officers. The navy wants $685.
033870 which would support $4,000
men. The appropriations would main
tain the land and sea forces at their
present strength and are the lowest
since the war.
State Debts Increasing.
/ Referring to the large amounts
which the federal government is con-
! tributing to the states each year for
road building and other projects, the
president said he was concerned be-
cause he felt this policy was causing
large increases in state, county and
municipal indebtedness. He made no
| direct recommendations on this sub
| ject however. He also indicated that
! he disaprpoved larGe expenditures for
research. improvement and develop
ment which have no business with the
business of government"
'That we approach the commence
ment of the fiscal year 1924 with an
estimated surplus for that year of
j $180,969,125 is certainly most encour-
! aging" said Harding while ] am
hopeful that there will be no deficit
in the. currnt fiscal year 1928, it such a
deficit does occur, this surplus for
! 1924 will give margin to take care
of it.
"The sum of s1,256, u.s. ,939 is provid-
/ ed for military functions which in
| cludes military pensions, retirement
| pay, annuities and World war allow
ances and national defense" the pres
ident said
The amount recommended for ma.
tional defense is divided into two
classes; Army, $256,552,8S7; pevy.
$3.50, ,SS9 1898
The amount recommended for the
maintenance and operation of the army
will provide for a regular army of
! 10000 officers and 125. 900 enlisted men
exclusive of the Philippine scouts
which is the force now authorized by
congress; will provide for the training
of $4,000 reserve officers for a period
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