Free trader-journal and Ottawa fair dealer. (Ottawa, Ill.) 1920-1927, 1922-12-04
CONGRESS TOLD IN
annual ESTIMATE
TO REDUCE BILLS
Washington, Dec. 4-President Harding in
submitting the annual federal budget for the new
fiscal year, frankly told congress today that
whether there was to be
any material reduction
In government expendi-

oiiJ iiiolSl iol lSiuClloll
IN government expendl-
lures and in taxes in future years,
would depend largely on whether
there was to be a curtaiment or ex.
pansion OF federal aid in lines of re-
quired improvement and develop
ment.
Placing the estimated government
decrease OF about $5O0,O00,0 600 as
compared with estimates for this
| fiscal year, Mr. Harding called atten-
| tion that two-thirds of this total
was on account of practically fixed
charges, such as the public debt,
national defense. pensions, world
war allowances and federal aid
! There was left, he said, only about
nine billion dollars in charges sub
iect to administrative control and
against which, he added, the retire.
ment policy Of the government had
! been directed.
Reorganization Necessary.
While expressing the opinion that
some further reduction undoubtedly
would result from a reorganization
of government establishments on u
more scientific basis, the president
said this alone would not affect such
ia material cut in operating costs as
would Justify the expression Of hope
for considerable lessening of ex-
penditures in the years to come.
Taking up the question OF federal
aid the executive declared that this
was rapidly broadening field OF, OK
penditure and that there was qnes-
/ tion as to how far the government
should participate iii it, He added
that it did not pertain to the normal
functions or operations of the BUSH
ness of government
| These extraveous activities he
| continued, "have flowed from laws
enacted pursuant to popular demand,
and take this occasion to refer to
them for the purpose OF showing that
the taxation which necessarily re-
suits in providing funds to meet
is necessary incident to the full
| filment of the popular demand
Other Debts Pile Up.
'In the efforts which have been
directed to reducing public eXpepdi-
! lures, | have been much concerned in
apparent increasing state, county
and municipal Indebtedness, and
am fearful lest this condition may be
! in part attributable to the eXpendi-
tufes made by the government pur-
suant to its federal aid laws, as
many of these state laws require
state contributions as a prerequisite
to the extension of the federal aid.
| The summary of the budget for
! 1924 as given to congress shows an
estimated excess of receipts over ex-
penditures next year of S1S0,969,125
as compared with an estimated deficit
of S273,038,7l2 for this fiscal year.
The president said. however, that he
was hopeful that the estimated de-
/ ficit for 1923 could be reduced in
the remaining seven months and that
the close of the year next June 30
would show a balanced account
Estimated expenditures Of $&,lS0,-
S43 234, for 1924 which are exclusive
of the postal service, compare with
estimated appropriations of SCOTS
| 940,331 for the same period Mr..
! Harding explained that the eXpendi-
lures would represent actual cash
Withdrawals from the treasury, in
!
priations in previous years
Another deficit in postal operations
was forecast for this year but Mr..
Harding said it was estimated that
| through proper adjustments there
would be a surplus of postal revenues
over expenditures in 1924 amounting
to 1852, ,439 For this year postal
costs were placed at $559996 S4l or
an estimated deficiency of $31 1902
$40, as compared with an actual de-
! ficiency in the last fiscal year Of
$64,346,234, The 1924 costs are given
at $5S4.653, ISL.
Army Of 125,o00.
The president told congress that an
appropriation of $256, ,552,SS7 recon-
mended for the army would provide
for a regular force of 1900 officers
and 125.000 enlisted men, exclusive
of the Philippine scouts, which is the
strength now authorized by congress
and would enable the militia bureau
to increase the strength Of the
national guard from 100000 officers
and men to 215.000 officers and men.
For the army air service $12,S7l, 500
is proposed or $23 500 less than ap-
propriated this year Mr. Harding
said this sum would permit the SER
vice to operate efficiently in accord.
ance with existing policy.
For the navy S2S9,SS099G is asked.
This amount. the president asserted.
would provide for the present enlist
ed personnel of $4,000 men: maintain
ell present ships in commission and
make provision for continuing all
new ship construction in privately
owned yards excent fer reduction in