The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1922-12-04
CURTAILMENT
US, AlD0NLY
WAY T0REDUCE
President Harding Puts Prob.
lem of Taxation Squarely
Before Congress
HAS MADE PROGRESS
Budget Work Cited 1924
Estimate Put at $780,
843,234
HAS MADE PROGRESS
(By the Associated Press\


Harding in transmitting the annual
federal budget for the next fiscal
year, frankly told congress today that
whether there was to be any material
reduction in government expendi.-
ures and in taxes in future years
would depend largely on whether
there was to be curtailment or ex-
pansion Of federal aid in lines of
research, Improvement and develop
ment.
Placing the estimated government
outlay in 1924 at $3,1s0,s43,234,
decrease of about $50O,OOO,0OO as
compared with estimates for this
fiscal year, Mr.. Harding called at
tention that two-thirds of this tota!
was on account of practically fixed
charges, such as the public debt,
national defenseA pensions, world
war allowances, and federal aid.
There was left, he said, only about
one billion dollars in charges sub
ject to administrative control ard
against which, he added, the re-.
trenchment policy of the government
had been directed.
While expressing the opinion that
some further reduction undoubtedly
would result from reorganization
of government establishments on .
more scientific basis, the Presider.
said this alone would not affect sucn
a material cut in operating costs a
would justify the expression Of hope
for considerable ,lessening of e.
penditures in the years to come.
Taking up the question Of federal
aid, the executive declared that this
was a rapidly broadening field of
expenditure and that there was
question as to how far the govern
ment should participate in it. He
added that it did not pertain to the
normal functions or operations Ct
the business of government.
"These extraneous activities he
continued, "have flowed from laws
enacted pursuant to popular demand.
and I take this occasion to refer to
them for the purpose of showing that
the taxation which necessarily re-
suits in providing funds to meet
them is a necessary incident to the
fulfillment Of the popular demand.
Reducing Expenditures
"In the efforts which have been
directed to reducing public expendi-
lures, l have been much concerned
in apparent increasing state, county
and municipal indebtedness, and
am fearful lest this condition may
be in part attributable to the ex-
penditures made by the. government
pursuant to its federal aid laws, as
many Of these state laws require
state contributions as prerequisite
to extension of the federal aid"
The summary of the budget for
1924, as given to congress, shows an
estimated excess of receipts over
expenditures next year of $18O,969,-
1926 as compared with an estimated
deficit of $273,93S,712 for this fiscal
wear. The President said, however
that he was hopeful that the estl-
mated deficit for 1928 could be re-
duced in the remaining seven
months and that the close OF the
wear next June 30 would show
balanced account.
Estimated expenditures of $3,loo,-
s43,234 for 1924, which are exclu-
sive of the postal service compared
with estimated appropriations OF
s3. DIS ,94O,331 for the same period
Mr.. Harding explained that the ex.
penditures would represent actual
cash Withdrawals from the treasury
I including some on account OF appro-
priations in previous years.
Deficit in Postal Operations
sAnother deficit in postal opera
tions was forecast for this year, but
Mr.. Harding said it was estimated
| that through proper readjustments
there would be a surplus of postal
revenues over expenditure in 1921
amounting to $952,439. For this year
postal costs were placed at S559'.
| 996 Sal or an estimated deficiency OF
s31 SOP $50 as compared with an act
ual deficiency in the last fiscal year
of s64,346,2S4 The 1924 costs are
| given at s5s4,653,151. :,
The president told congress that
| an appropriation Of s25e,552,ss7 re-
commended for the army would pro
vide for a regular force of l2'ooJ
officers and 125,OOO enlisted me-,
exclusive of the Philippine scout
which is the strength now authof-
| lied by congress and would enab''
the militia bureau to increaes the
strength Of the national guard from
100000 officers and men to 2l5,''V
officers and men. For the army AR
service s12,s7l,500 is proposed, Or
s2s.5OO less than appropriated tins
Iyear. Mr.. Harding said this SUN
would permit the service to opera &c
efficiently in accordance with eA-
isting policy. ..t
Navy Needs
For the navy $3.50 9,ssO,993 is asked
This amount, the President asserted
would provide for the present et
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