Perth Amboy evening news., 1922-09-30
PROBLEMS OF THE BUDGET
NOW BEFORE u. S. A.

WASHINGTON. Sept. 27.-The
newly devised American budget sys-
tenn Is facing a crisis which will
determine whether or not our form
OF Government Is adaptable to this
method of scientific finance. For
many years the Congress has been
besieged with proposals to enact a
budget system as a means OF instl-
tuting economies and placing re-
ceipts and expenditures of the Treas
ury in such a form that uncertain
ty would be taken out Of the low
eminent fiscal operations. Such a
system was instituted something
over a year ago and has been in
operation.
General Charles G.. Dawes was
| the first Director General OF the
Budget. With characteristic vigpr
he effected economies in operation
O. the vast Government machine,
waste in scores OF ways. 1t Is DIFF
ficult to determine what Is saved in
governmental operations because
what might have been spent Is SO
vaguely potentional a quantity that
1t is not readily susceptible of reduc-
ton to figures. 1t 10 generally ad-
| mitted, however, that General
Dawes administration OF the budget
cut down waste and extravaganza to
tie extent Of many millions OF del
lars.
On the first Of July General
Dawes turned the Bureau OF the
Budget over to General II. M. Lord.
General Lord is a man OF equal, II
not greater vigor. He has found
some fault with details of his pre-
decessor's administration and hopes
to make even greater savings. He
has intimated that while much hal
been done in the way OF economy,
the big task of holding the expenses
down lies still ahead Of the Buresu
of the Budget.
Recently the several executive oe-
partments, boards. bureaus and COM
rissions submitted to the Bureau
estimates of appropriations for the
ensuing year. These figures were
largely in excess of what the Director
of the Budget thinks safely can be
allowed II a balance ID to be main
tanned between receipts and expen-
ditures. The estimates have been
sent back for revision and q maxi
mum figure quoted to each depart
ment within which Its estimates
must stay.
The Budget Director Is proving
obdurate. He will not relent and
give the various department heads
larger allowances. Every executive
in the Government has pet schemes
requiring appropriations and they all
fight equally hard for them. The
director of the Budget looks the In
come Of the Government squarely In
the face and If the estimates of APP
xo,,;otnn. ~vnaoA thu inNnmA. M
says mo" very decisively.
May Appeal to Congress
The next step of the offended oe
pertinent executive is to so straight
to Congress. The Budget Bureau
will not allow him funds to carry or
important agricultural experiments
for instance. He interests soEe
members of Congress and gets spe-
cial bills introduced appropriatine
the desired sums. This procedure Is
followed all down the line.
This is where the crisis appears
1.-The Bureau OF the Budget puts ~
o. X. on the restricted, regular Items
for maintenance and operation
These expenses r calculated tc
take up the whole income of thu
Government. Then come these sep
arate appropriation bills, with loas
and often convincing arguments II
their favor. calling for millions o
dollars in addition.
VIII Congress hold the expense,
down to the budget estimates or VII
It pass the extra appropriation bills
If the appropriations are confined
to the budget, the budget system
wins. If the extra appropriation
bills are passed, the budget system
ir practically scrapped because III
effectiveness is rendered void. Tnt
very theory of a budget system Is Il
keen within certain fixed limits, bal
~ancing income and expenditure. ir
such a system the toes OF a gocc
many Government oficials are troc
lupon rather ruthlessly because Items
must be slashed from the estimates
TO make the figures balance. II
Congress calmly walks around the
budget and adds various Kinds o,
snecial appropriation bills, the who's
nurpose of a budget is defeated and
The same situation obtains as before
the budget bill became a law.
The question will be threshed out
in Congress at the session TINS
winter and it is expected that there
will be fireworks in the process. Tne
president strongly upholds the bud
get xxstem and has declared uneQui'