New-York tribune., 1922-07-12
Harding Orders
More Economy
TO Meet Deficit
TellsCovernment Executives
Expenses Must Be Cut to
Rome as Estimated Income
Is S425 100000 Short
aNo Tax Raise, He Rules
Puts Faith in Budget Plan;
Not Unduly Concerned;
Assails Rising City Debts

WARRINGTON, July II. - Admins
.-..;va affieers of the executive estab-
sM.s.,snts Of the government, who were
n.ss.erahled to-day for their third semi
s.rrsJ business meeting, were called
-, by President Harding for "the
s.-ost economy of expenditure dur
~. the current fiscal year and the use
s,heir "pruning knives" upon the es-
.;natas for the succeeding twelve
months.
Sc Federal officials as an example for
4. states and municipalities, whose
,rsnating debts he described as
smfrsce' unequaled in America to-
referring to the operations of the
audres Bureau in the fiscal year lust
sndsd, daring which Withdrawals from
,hs Trassury were reduced by $780,
$4,000 from the earlier estimated total
~ s4s5a,000,0 900 as "a record of real
achievement" he declared that .sthe
prospective net deficit of $425, ,00o. 900
..r the current fiscal year is a chal-
lenge to US ALL" Receipts for the cur
rsrt year. he stated, were estimated
Il sS,07s,000,o00, while expenditures
we're placed at S3,771 600, 900, an ap-
usrent excess of expenditure amount
lag to S69f 100000, but Offset to the
snount of S272 900 by the general
balance in the Treasury on June 30"
No Need for Concern
Experience of the last year, the
President continued, has demonstrated
that there need be no undue concern
over prospective deficits, recalling that
while deficit of $24,ooo,o00 was fore
east last year a surplus of S313,0oO,-
900 was realized This was accom-
pished, he asserted, despite the fall
IN government receipts for the year
Of si,515,00o,00o, the equivalent of the
reduction In the amount collected from
the people Because the government
pyuned its expenditures by S1,743 ,0OO,-
900, it produced an actual surplus.
"This," he said, "is certainly
gratifying accomplishment" but, he
added, expenses must be kept within
income this year and called upon the
governments executives for still closer
scrutiny Of their activities and ex-
wnditures.
1If in your jurisdiction" the Presi-
ient said, "you find activities and ex-
penditures that can properly be cur
tailed or eliminated 1 admonish you
10 do it; if the laws do not leave it
within your power to do this, submit
It to the President for recommends
ton OF Congressional action. The bust
ness head of the government does not
and cannot contemplate or expect ex-
pshditures this year will exceed in
cone. II they do it will be regarded
az 1ra- fnv- -
bsspeak your fullest co-operation."
Warning against deficiency estimates
was sounded by the President, who de-
sard that oficials would be held
Ertly to account for observance of
aspolicy against such demands upon
Congress- which in the last fiscal year
deficiency and supplemental esti-.
mates submitted amounted to $661 ,0Oo,-
100, although many were unavoidable.
fe declared, because of wartime con-
dtions.
For the fiscal year 1924, the Presi-
1t s3,l98 100000 or approximately ly
$4,000, 900 less than authorized ex-
Fsnditures for the current fiscal year
We must all keep constantly in mind, =
be said, chat the probable receipts for
pdations as in 1923. In that connec-
ton may say frankly to you that
will not send to Congress estimates
exceeding the probable receipts of the
government. and l must warn you that
unless you use your pruning knives the
executives will be compelled to cut
deeply the estimates presented.
"0ur country is one of the few in
the world which is now paying it's
way as 1t goes, and I must regard
with disfavor any tendency to inter
fere with this condition or to increase
taxes"
After receiving the standing pledge
Of the officers of the government to the
Administrators efforts toward econ
omy, the President declared that there
were really two phases resulting from
the efforts of the Federal government
to limit expenditures.
There is not a menace in America
Today he said, equal to the mount
ing state and municipal debts" which
ne declared were assuming such pro-