The New York herald., 1922-05-08
EXPENSES
CUT S1,6OO,OOO,O00
Continued from First Page.

make up the latter part OF tne report
the Director says:
1T will be noted ,lom the table COW
ering gross expenditures and estimates
that the Director of the Budget out of
total estimated expenditures of $3,922,-
372,030 for 1922, classifes only S1,76b,-
S75.672 as being generally subject to
Executive control In the operation or
the routine business of government.
These figures compare with actual eX-
penditures under the same categories In
1921 of s2.673. .435. .079.77. segregated out
OF total annual expenditure for 1871
Of s5,53S. 040, $3.50.
"The reduction in Jne ordinary expen-
ditures for the operation of the routine
business of government generally sub
ject to Executive control in 1929 as COM
pared with 1921 will be, therefore in the
neighborhood OF 1907, 100000 AS against
this enormous total reduction the esti-
mate of economies and savings incident
TO the new imposition or Executive con-
troll over governmental" expenditures in
1922 is estimated by the Director OF the
Budget in this report at the lesser sum
OF $250.134,S35.03. He feels reasonably
assured that this estimate OF ecouomles
and savings attributable to the new sys-
tenn is an underestimate. but that II an
error has been made in this regard the
savings and economies are still so large
as to vindicate 1t, and will at the same
time emphasize the indispensable policy
Of the Budget Bureau to have its esti-'
mates conformable to the principles Oh
business conservatism.
Indefinite General Savings.
'In these figures the Director OF the
Budget has found 1t impossible to make
-, IfoA acti a 70 nf indefinite
general savings, such as those Incident
to the corrected system OF purchasing
which has been established in the Gov
ernment, by which competition between
departments and the overlapping and
acquiring of unnecessary surplus has
been avoided. On the basis of the orig
inal estimates made by different depart
ments and establishments there have
been eliminated. after due consideration
of the facts involved. in the neighbor-
hood of s15o.OO0.00o claimed economies
Calling attention to the fact that most
statements OF Governmental finances,
covering operations in capital funds, In
vestments of trust funds, and so on. are
so confusing that it takes an expert to
make proper deductions therefrom,- the
Director again speaks of the archaic
system of Governmental bookkeeping,
and says his tables are prepared with
the idea OF making comparisons between
the actual expenditures of 1921 and the
estimated expenditures of 1922, with
comparisons of subtotals which Will
make possible the correct estimating OF
Improvement. t--.
He holds, however. that until a proper
system Of accounting is installed 1t Is
still difficult to draw. proper conclusions
as to real economies Then, recalling
the budget estimates of December, he
says in part:
THE budget estimates made last fall
of Ordinary expenditures for the op-
GRAFTON of the routine business of Gov
ernment. generally subject to Executive
control were -s1,732, 2,60S,215. AS COM
pared with this, the present estimate OF
expenditures is S1,765, ,S75,672, but in the
latter figure there are included new ap-
preparations of s5.000,000 for payment
under the treaty with Colombia, $1,000
900 to provide for the representation of
the United States at the Brazil EXPOSE
ton and S1,500,000 for seed loans, ag-
gregating S7,500.000, which are not ex-
penses subject to Executive control in
business operation and which should be
deducted. leaving the more proper figure
for comparison .375,672, which. is
an excess over the budget estimates OF
last fall Of only s25.767, ,457, or about VI
per cent. This figure is s915,059,407 less
than the figure of actual expenditures
under like categories In 1921.
THE grand total of all estimated ex-
penditures of Government for the fiscal
year 1922 is S3.922,372,030. n reduction
of s45,550,336 from the budget estimates
made last fall and reported to Congress
in December, and reduction of s1,615,-
66S.659.3O as compared with the actual
expenditures for 1921"
System of Reserves.
This statement is the outstanding fea-
ture OF the report From the more gen.
eral subject the Director turns to the
system of reserves against appropria-
tions, which he required each depart
ment to set UP and as to this he says:
"The operations in this reserve fund.
both through additions and substrac-
TORS, are a demonstration of the effec-
tivcness of the new system Of Executive
control The original savings reserve
first set up was in the amount of S112,-
512,62S.32. The addition to this reserve
secured through Executive control. after
subtracting all reductions authorized
by the Executive, amounts to s30.659,-
1881. and had not Congress. in the
deficiency act of March 90. 1922, au-
thorized the expenditure of s7,22s.S41.62
a I..r In