Evening journal., 1922-07-12
Calls on Cabinet and De-
partment Heads TO Sup
port Him
WANTS TO AVERT
HUGE DEFICIT

YEAR, y AAAhA wiz HNtAh July - AH~'f
unless rigid economy is exercised.
Occupying the platform with
Brig.-Gen. II. NJ. Lord successor to
Gen. Charles C. Dawes. as Director
of the Budget, the President called
attention to the fact that the esti-
mate OF receipts for the next fiscal
year IS approximately S60O,o00.OoO
less than the total appropriations
for the present fiscal year. which
began on the first day of the pres
ent month.
Secretary OF State Hughes, Secre-
tary OF War Weeks, Gen. John J.
Pershing, Secretary of Agriculture
Wallace and Secretary OF Labor
Davis were among those on the
platform In the audience were
heads Of bureaus. assistant secre-
taries and other important Govern
ment officials.
After the address of President
Harding and Gen. Lord all those
present arose and made standing
pledge to support the policy Of eco
nomy.
In addition to announcing the sue
cesSul working OF the budget as
established by Gen. Dawes and ad-
vising the necessity of economy 10
meet the conditions OF the present
and the next fiscal year President
Harding called attention to the ex-
ample which the operation of the
system is giving TO other nations
and to States and municipalities in
this country. Mounting expendi-
lures in States and cities he de-
scrlbed as one of the greatest men
aces the country faces.
In the outline OF the Govern
mept's finances by the President and
described with more detail by Gen.
Lord there was no reference to the
impossible demand that would be
made upon the Treasury. of the
cash bonus raid on the Treasury
were successful. With appropria-
tions already pared TO the bone ana
with the estimated revenues for the.
next fiscal year more than half Va
million dollars less than the appro-
priatlons for the present fiscal
year. the inference was, plain that
the Treasury will stand no addl-
tional strain.
Only by the successful operation
of the budget system. which has
already made n remarkable saving
in Government funds. will the Gov
ernment be able to bridge the diff
ference in estimated receipts for the
next fiscal year as compared with
the appropriations for the present
fiscal period.
President Harding paid a tribute
to Gen. Dawes. who lnaugurated the
budget system
Il know" he said. "how deeply !
you regret the going of this charm |
ing and fascinating personality rep
resented by Gen. Dawes, who led US
In establishing the budget system" |
Last August" the President add |
ed, lit was estimated on informa- |
tlon furnished by those speaking for
the spending agencies of the Govern
ment that Withdrawals from the /
Treasury for the fiscal year just ter
would be $4.55O. 900. 900. !
The last Treasury estimate shows
this figure was reduced TO $3.795,-
OOO. 600. a reduction of $4,000. 900.
The best estimate OF receipts for
the current fiscal year is sS,O74OOO,
while estimated expenditures are
placed at SS.771. .O0O.O 900. an appar-
ent excess OF expenditures amount
ing 70 s697.00O.OO0.
But the last years experience has
that we need not be
unduly concerned over such pros
pective deficits when we have the
benefit OF the budget organization
and of your cooperation. Last year
in the annual report on the budget
a deficit Of $4,000 900 Was fore
instead we closed that fiscal
year with surplus OF receipts over
amounting 10 S3l3,0OO,-l
900. This despite that the Govern |
ment's receipts IN that year fell on
That is, the Gov
crnment reduced by S1.515. 900, 900
the amount which It collected from
the people and yet. because It was
able to prune It expenditures by
900. It produced an actual
surplus.
THE total estimated appropria-
tlons for 1929. including supple
mentals were s2.911.44S.OOO. includ- !
Ing the postal service. while total |
amounted 20 s3,747,-
O35.O0O, a reduction OF Sl64,413,OOO /
from the estimates exclusive OF about /
S6O.OOO,0OO not estimated for In the |
budget. The difference is relatively |
small considering that estimates for
the fiscal year just closed were near
" 100000. 900 more than the ap- !
II is hoped that with !
more experience estimates and ap-
propriations may be brought still
closer together.
THE preparation of estimates for
the fiscal year 1924 is the next i'm
mediate duty. For that year esti-
mated receipts are SAFES. 100000 or
$500, 900, 600 less than
the appropriations for the current
year plus authorizations for eXpend- |
itures not included in the appropria- |
tions. We must all keep constantly ]
In mind that the probable receipts !
for 1924 will not permit as liberal !
as AOt A'-"' III 'A"'
l may say frankly TO you /
that I will not send 10 Congress esti-
mates exceeding the probable re-
,eipts OF the Government, and l mus.
warn you that unless you use your
knives the Executive will be
to cut deeply the estimates
presented"