, 1922-05-18
Business in Goperument

.FCoNoMY Is E-XEMPLIFTED in small things as
III well rs large things 1t is the practice of economy
in all things that finally makes up the sum total OF
lsaving. The efforts of the Harding administration
executives toward the saving of money to the tax
payers in large affairs have been frequently laid be-
fore the public to the everlasting credit of the admin
sistration and its officers. To them also must be
given an equal credit IN the small savings they have
effected in the various departments Therefore let
IN turn to the small things that form so large a part
of the governments business
In the latter part of last year the veterans bureau
needed furniture to equip one Of its offices. Had it
gone into the open market and purchased the furnl-
.ture it would have spent S1,114. At that time the
shipping board had among its vast amount of surplus
supplies a large quantity of office furniture. Based
upon the records of prices received by the govern
-ment for surplus property a~uctioned at forced sale,
the shipping board would have received not in excess
of $500 for this furniture had it disposed Of it at
forced public sale.
Under the system which prevailed prior to the in
sstallation Of the budget system, the veterans bureau
would have gone into the open market and expended
-Sl114; the shipping board would have sold its fur
.niture at forced public sale and received $500. There
would have been, in other words, two cash transac-
lions upon the part of the government-an %expendi-
lture of S1,114 for furniture; the receipt of $3.50 from
the sale of furniture; representing a total net eNpen-
'diture of 1924 cash. Under the budget system the
shipping board transferred enough surplus furniture
to the veterans bureau to equip its office and the
government thereby saved $624. This is the result
of more business in government.
In the latter part of 1921 the navy department
needed some wrenches. They would have cost 500
in the open market. The shipping board had a sur
plus of wrenches which would have brought at
forced sale n sum not in excess of S42. Under the
sid method the shipping board would have sold the
-wrenches for S42 and the navy department would
have gone into the open market and bought like
wrenches for S96. The government would have been
out of pocket the difference, or S54. Under the
budget system the shipping board transferred the
swrenches to the navy department and the govern
ment saved the $54.
The public health service needed some cord, thread.
medical gauze, etc. The war department had a sur
plus supply of this material. Under the old system
the public health service would have gone into the
dorcu market and purchased it and the war depart
sment would. have offered its surplus at a forced sale.
Under the budget system the war department trans
ferred the surplus to the public health service at a
saving of $462.
The lighthouse service of the department. of com
merce needed new boats. The commissioner of the
lighthouses was planning to spend 100000 for three
years on a bodybuilding program. The war depart
ment had on hand a number of vessels that were
used during the war as mine planters for which it
had no use and for which there was no demand in
the open market. Under the budget System the war
department transferred these vessels to the lighthouse
service in the department of commerce and the three
year bodybuilding program involving S1,50O,0o0 has
been abandoned because it is not necessary.
These are four Illustrations taken at random a
= list of thousands of transfers which have been made
of surplus property from one department to another
under the operation of the budget system. These
transfers have run all the way from electric light
bulbs and washers wo-th 25 cents to ships valued at
SI25o, 600. Practically every department, bureau
and commission in the United States government has
been affected, by these transfers. The total savings to
the government by this system OF transfers from July
H., 1871, 70 lhI o. 1870 was EaSEbosAOO. 1nlS
is a concrete illustration of what is meant by putting
more business in government and thereby putting the
government on a business basis.
Another business method which this administration
put in the government was the establishment of "sav-
ings reserves" at the beginning of the fiscal year last
July. The explanation of this is as follows: As the
Affairs of the government were run prior to this adj
ministration. appropriations made by congress have
always been regarded by the executive agencies as
The minimum amount which they could spend. AS a
result. they made no effort to save anything out of
their appropriations. On the contrary, the habit grew
70 spend even more than the appropriation, thereby
mourning deficits which congres7 was called upon to
meet by the passage of deficiency appropriation bills.
On June %, 1921, at a meeting of the heads of the
various departments, bureaus, commissions, etc,
called by President Harding, instructions were given
to each executive to set by, ont of the money appro-
priated by congress to his department or bureau, a
fixed sum which he should regard as a Saving re-
serve." Tkis reserve should not be touched except in
eases of absolute emergency. The aggregate amount
Of Savings reserves" set aside was SIP, 512,6 28. On
March 81. 1922, these reserves had reached the sum
o. s135,942,975, or an increase in the "savings re-
serves" Of $23,430,346
This is comparable TO the housewife. who takes
fscn Ar hoc,oho.d allowances 4 sum which she puts