New Britain herald., 1922-12-04
Harding, Explaining Budg- ct, Says Reduction in Research, Improvement and Development Alone
 Can Cut Govt. Expenses
Expenditures of 1924 Will Be $3,1SO,S43,334, Not h. cluding Postal Service Army and Navy Will Take $546,433,SOO.

Washington, Dec. 4. - Prosider Harding, in transmitting the annua federal budget for the next fiscal yea, frankly told congress today tha whether there was to be any matcria reduction in government expenditure and in taxes in future years would de pend largely on whether there was t be a curtailment or expansion of fed eral aid in lines Of research, improve ment and development.
 Only Billion Left
 Placing the estimated governmen outlay in 1921 at S0,S43,234, a de crease of about $500, 100000 as com pared with estimates for this fisca year, MT. Harding called attention that two-thirds of this total was oi account of practically fixed charges such as the public debt, national de fense, pensions, world war allowance, and federal aid. There was left, ht said, only about one billion dollars ir charges subject to administrative con
 
 retrenchment policy of the govern. ment had been directed.
 Little Hope of Reductions
 While expressing the opinion that some further reduction undoubtedly would result from reorganization of government establishments on a more scientific basis, the president said this alone would not affect such a mater ial cut in operating costs as would justify the expression Of hope for a considerable lessening of expenses in the years to come
 Federal Aid Problem
 Taking up the question of federal aid, the executive declared that this was a rapidly abroadening field of ex- penditure and that there was qucs- ton as to how far the government should participate in it.
 He added that it did not pertain to the normal functions or operations of the business of government
 These extraneous 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 results in providing funds to meet them is a necessary incident to the fulfillment of. the popular demand.
 Tn the efforts which have been di- rected to reducing public expendi- lures, have been much concerned in a reduction in the county, and muni- cipal indebtedness, and I am fearful lest this condition may be in part at tributable to the expenditures made by the government pursuant to it's fed eral laws, as many of these state laws require state contributions as to pre- requisite to the extension of the fed eral aid.'
 Hopes For Balances
 A summary of the budget for 1a24l as given to congress shows an esti mated excess of receipts over exper~ ditures next year of $1S0,969,125 as compared with an estimated deficit of $273,93S,712 for this fiscal year. The | president said, however, that he was hopeful that the estimated deficit for | 1923 could be reduced in the remain ing seven months and that the close of the year next June 30 would show a balance in the account
 Estimated expenditures of s3,1S0,- S43,234 for 1924, which are exclusive of the postal service, compare with estimated appropriations of $3,07S,- D40,331 for the same period MT. explained that the expendi- lures would represent actual cash from the treasury, in- ,uding some on account of appro- priations in previous years.
 Another Deficit.
 Another Sefsoii.. in postal operations was forecast for this year, but Mir. Harding said it, was estimated that through proper weadjustments there would be a surplus of postal revenues ,ver expenditures in 1924 amounting Q $952,439. For this year, postal ,osts were placed at s559,996,S41, or Tn estimated deficiency of s31,502,- ,70 as compared with an actual defi- ( ,iency in the last fiscal year of $64,- '46,234 The 1924 costs are given at ' c
 Tho Arlny's Status. The president told congress that an appropriation of $256,552,SS7 recom- a
  nended for the army would provide or a regular force of 12,000 officers Il nd 125.000 enlisted men, exclusive '' f the Philippine scouts which is the trcngth now authorized by congress nd would enable the militia bureau 5 Q increase the strength of the Ma onal Guard from 160,000 officers 7 nd men to 215,000 officers and men. U Or the army air service, s12,S71,50o 7 proposed, or $23,50o less than ap- ropriated this year.
 Naval Strength.
 For the navy, s2S9, SSo. 993 is asked. S, his amount, the president asserted, c, ould provide for the present enlisted u ersonnel of S6.A00 men; maintain all rt resent shiEe in commission and al ake provision for continuing all new V, lip construction in privately owned P ards, except for reduction in speed ca (Continued on Eleventh Page.) ol