The Washington herald., 1922-06-04
GOVERNMENT COST
DROPS Is BILLIONS
IN THREE YEARS
Madden Analyses u. S.
Expenditures and How
They Are Made.
BUDGET BIG SAVING
Sees Little Hope of Reducing
Outgo Below SO, $50, ,000..,
900 for Long Time.

Representative Martin B. Madden,
Of Chicago. chairman of the House
Committee or Appropriations. has
made an analysis of government ex-
penditures for the last few years. and
has submitted figures on the nrst
years record Of the budget system
which show encouraging results.
hr. Madden's figures show that
long step forward to normal expendi-
lures has been taken by the gov
ernment appropriations falling from
$4,000. 900. 900 in 1919 to ss.s47.ooo.-
oeo in 1925 with the prospect of
cut to 1850. .ooo.o for 1923
at will not be possible. in my
Judgment" said Mr.. Madden. "to re-
duce the government cost much, IL
any. .elow sasso. 200. 900 per annum
until the public debt Is reduced suf-
hciently to lower the interest charges
and until the period when the need
no longer exists for so large an ex-
penditure in connection with the care,
VI AAAC NCACIdIS OL lnc WOTlQ war.
Workings of Budget.
Under the budget act" said Mr..
Madden, the director of the budget
10 required. on behalf of the President,
TO call upon the heads of the depart
nients and Independent establishments
OF the government for detailed state
ments of the activities upon which
they are about to enter for the COM
ing year. with a detailed. estimate
OF the cost of such activities" said
Mr.. Madden.
These statements are made by
the bureau chiefs to the head of
the department and referred by him
to the budget officer of the depart
ment, who revises the estimates up
ward or downward. and later they
are revised by the head of the de-
partment before submission to the
director of the budget.
The director of the budget ex-
amines all parties interested in the
figures submitted. He has the
power to revise the figures. and
after he mas completed his exami-
nation he submits the report to
the President, who is required to
report to Congress the details of
all government activities and the
financial needs for the ensuing
year.
Department Heads Testify.
After the submission of the
Presidents recommendations to
Congress the subject is referred
to the Committee on Appropria-
tions. The committee divides the
Presidents recommendations into
departments. and for each depart
ment prepares a bill showing the
amount requested for each activity
within a department The commit
tee then holds hearings. Heads OF
departments and bureau chiefs are
required to testify as to why the
activity is necessary. The commit
tee compels disclosure of every fact
in connection with each proposed
expenditure and frequently finds
facts which justify denial of the
request, and more frequently re-
duction Of the amount asked.
''when the committee completes
its hearings the bill is revised and
reported to the House. When the
house completes the bill IT is sent
to the Senate and referred to the
Committee on Appropriations there.
This committee goes over the de-
tails of the bill as passed by the
House and frequently amends 1t
upwards. rarely ever downwards.
when it comes back with Sem
ate amendments. each house ap-
points conferees to reconcile the
their conclusions to their re-
h.
bills are finally adopted by both
houses they are signed by the
President and become law.
VIII BE Big Advantage.
The appropriations for 1920
were s939, 100000 less than the de-
partments' recommendations; for
1928 the recommendations OF the
committee are s312.Ooo.OOo less than
the recommendations of the budget
director.
There have been cases where
departments have come before the
Committee on Appropriations for
s125,0o0,0Oo and an examination by
the committee led to the conclu-
sion that s4s.500.000 was all that
could be used leEitimately in con-
nection with the activity. AS much
as s12.00O,OoO has been asked and
examination by the committee dis
closed that no appropriation was
necessary.
"A budget is simply a statement
of the government needs for the
activities for the ensuing year in
which IL is expected to engage, and
under existing law II will un-
doubtedly prove to be a great ad-
vantage as a medium through
which to enforce economy"