, 1922-10-12
Merely Democratic Propaganda

A SYNDICATE correspondent recently started q
"A story out of Washington to the effect that the
government had a deficit of $3.50, 000,0 He pro-
ceeded to assert that this alleged deficit exposed
Republicans who were cioiming credit for balanc.
ing the budget and was making il very eInharrass.
ing for Republican campaign speakers who were re.
ferripg to the splendid work done in the way Of
public economy by the Harding administration.
This sly way of conveying a totally false impress.
sion of existing conditions is a typical piece of
Democratic propaganda. The writer was one of the
leading propagandists of the Wilson administra-
ton and has never become reconciled to the ascend.
ency of the Republican party.
AS might be expected the Democratic official
publicity and Democratic newspapers throughout
the country have taken up this story and are cir.
c%ulating it in an effort to persuade the taxpayers
that the present administration as made false
representations regarding its accomplishments in
ECONOMY.
The whole story was based upon a statement
made by President Harding in connection with his
veto of the proposed honus. In that statement he
called attention to the fact that there was an aesti.
mated deficit for the year ending june 30, 1923 Of
$3.50, 600, 900.
of the article we'll knows that deficit estimates"
have been a matter of routine at the beginning of
every fiscal year in government. The difference
between this administration and the Democratic
administration preceding it is that now, under the
OF the budget. these estimates are not
likely to come true, whereas under Wilson's admin
~istration they not only came true but they grew.
larger month by month.
There was nothin. unusual about President
Hardfng's reference TO ESTIMATED deficits. 1t
simply called attention to the fact that the govern.
'ment would have to keep on ~economizing during the
coming year as it has done during the past year.
What the writer of this alleged non partisan On
Dictated article did not inform the public and what
the Democratic newspapers are not tnformiag the
public, is the fact that in June and July 1921. Just
after the present administration came into power.
the estimates of expenditures for the fiscal year
which had just ended and which was then Just be
ginning. aggregated 1853. 1000 900 more than the
'amounts which were sctually expended by the time
the year closed. What the public was not told in
this article is that the fiscal year which began in
July, 1921, promised a deficit Of many hundred
millions, but that owing to the economy program of
the administration it closed with a surplus of over
$500, 100000.
A year ago the government faced an ESTIMATED
deficit of many hundreds of millions with the bud.
get bureau still an untried institution, and with
the heads of the executive departments of the gov.
ernment unorganized for the purpose of saving
money. The first meeting of the business heads Of
this governement ever held in the history of the
republic was held on June %, 1921. At that meet.
ing there were some 500 department, bureau and
commission chiefs. They were addressed by Presi.
dent Harding and Director Dawes, of the budget
bureau. They received their instructions as TO how
they should organize and coordinate for the pur.
pose of reducing expenditures.
1t was the result of this systematic organization
in the interest of economy that enabled the admin.
istration in the first fiscal year of its existence
TO start that year facing an ESTIMATED" deficit OF
many hundred millions and close it with a surplus
of S30O,O0O,GO0. In view Of the fact that the budget
bureau and all of the administrative agencies Of