The daily star-mirror., 1922-12-04
SAYS MUST BE CURTAILMENT OF
FEDERAL AID IF TAXES IN COM
ING YEARS ARE LOWER.

Harding, in transmitting the snnua
federal budget for the next fiscal veal
frankly told congress today thai
whether there was to be any materia
reduction in government expenditures
there was to be curtailment or ex.
pansion of federal aid in lines cf re-
search, improvement and development
Placing the estimated government
outlay in 1924 at $3,18O,84 ,234, de-
crease of about $5OO,00O,000, as CON-
pared with estimates for this fiscal
year, Mr. Harding called attention that
two-thirds of this total was on ac-
count of practically fixed charges,
such as the public debt, national de-
fense, pensions, world war allowances
and federal aid. There was left, he
in charges subject to administrative
control and against which, he added,
the retrenchment policy of the govern
ment had been directed
While expressing the opinion that
some further reduction undoubtedly
would result from a reorganization of
government establishments on a more
scientific basis, the president said this
alone would not affect such a material
cut in operating costs as would justify
the expression of hope for a consider
able 1essening of expenditures in the
years to come.
Taking up the question of federal
aid the executive declared that this
was rapidly broadening field of
expenditure and that there was a
question as to how far the govern
ment should participate in it. He
added that it did not pertain to the
normal functions or operations of the
business of the government.
"These extraneous activities" he
continued, "have flowed from laws
enacted pursuant to popular demand,
and l take this occasion to refer to
them for the purpose of showing that
the taxation which necessarily re-
suits in providing funds to meet them
is a necessary incident to the full
filment of the popular demand.
.sIn the efforts which have been
directed to reducing public expendi-
lures, Il 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 expenditures
made by the government @pur-.
suant of its federal aid laws, as many
of these state laws, require state con-
tributions 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 $3.50 O,969,l25
as compared with an estimated defic-
it of $273, ,938,712 for this fiscal year.
The president said, however, that he
was hopeful that the estimated de-
ficit for 1928 could be reduced in the
remaining seven months and that the
close of the year next June 80 would
show balanced account.
Estimated expenditures of $780,
843,234, for 1924 which are exclusive
of the postal service, compare with
estimated appropriations of $3,O7S,-
940,331 for the same period.
Mr.. Harding explained that the ex-
penditures would represent actual
cash Withdrawals from the treasury,
including some on account of appro-
priations in previous years.
Forecasts Postal Deficit
Another deficit in postal operations
was forecast for this year, but Mr..
Harding said 1t was estimated that
through proper readjustments there
would be surplus Of postal reven-
s1es over expenditures in 1924 amount
ing to 1852, ,439. For this year postal
costs are placed at $559, ,996, ,841, or an
/. estimated deficiency Of 31,5O2,5 $40,
as compared with an actual defici-
ency in the last fiscal year of $64,-
346,23 The 1924 costs are given at
1854, ,653 ,151.
The president told congress that an
of $256,552,887 recon-
mended for the army would provide
regular force of 10000 officers and
= 1ofo
Philippine scouts, which is the
strength now authorized by congress
and would enable the militia bureau
to increase the strength of the nat
ional guard from 100000 officers and
men to 215,000 officers and men For |
the army air service $12,871, 800 is |
or $23, 800 less than appro-
priated this year. Mr.. Harding said ,
this sum would permit the service to |
operate efficiently in accordance t
with existing policy.
For the navy $289,880,993 is asked.
This amount, the president asserted,
would provide for the present en- /
listed personnel of $4,000 men: main
tain all present ships in commission
and make provision for continuing
all new ship construction in private
Iy owned yards, except for reduction
in sneed of construction on three
light cruisers.
Provision is made in the budget for
$523, 100000 in pensions; $434, $50
In world war allowances and $20,-
389, ,289 in retirement pay. Other items
include s41,764,550 for rivers and har-
bors; $31, 100000 for good roads; So /,
718, $50 for hospital construction and
facilities for war patients; $2,2OO,0 900
for railroads in Alaska; $6,889, ,105 for
the Panama canal; $18,553,686 for
general law enforcement, including
and enforcement of
the national prohibition and narcotic
acts, and the prosecution of war
frauds, and S750,000 for the replace
ment of worn out portions of the
Alaska cable.