Imperial Valley press., 1922-12-04
BUDGET Of
NEW YEAR
GUT DOWN
Asks Three Billions For
u. S. Expenses-LOwest
Since the War
GREATEST REFORM"
Harding Praises Budget
Bureau for Economy
Predicts Surplus
By United Press Leased Wire

By United Press Leased Wire
- WASHINGTON, Dee. 4.-Presi-
dent Harding today sent Il special
message TO congress announcing
that the federal budget for the fiscal
year, beginning July /, 1923, will be
approximately three billion dollars
the lowest yearly expenditure of
the government since the days be
fore the war.
Praising the rigid economy which
the budget bureau has enforced dur
ing the last year, the President
pointed out that the government is
now back to pre-war days in general
expenditures. OF the three billions
asked, two can be attributed to the
war. lie made il plain that his ad-
ministration viii continue to fight
for greater economy.
The President indicated that be
cause nearly two-thirds of the gov
ernment s yearly bill represent the
fixed charges resulting from the war
it will be difficult to reduce taxes
in the near future.
The budget system, the President
declared, was "'the greatest reform
in our financial history. y
Government expenditures during
the next fiscal year will be- So, $780,
1925, reduction of nearly 5000,
100000 as compared with the eXpen-
ditures of the current year. Spe'
, officially the executive asked for
appropriations of $3,07S,940, ,331 90,
the difference between appropria-
tions and expenditures being attrib-
uted to the fact that congress makes
appropriations which carry over
from year to year.
Predicts Surplus
A surplus of SlS0,969, 125 in the
government s financial operations
for the next fiscal year was esti-
mated, as compared with probably
deficit this year of $213,93S,712.
The total receipts of the govern
ment during the next fiscal year
were estimated at $3,361 ,Sl2,359, as
compared with $3,429, ,962, ,959. These
estimates were based on no reduc-
tion of taxes, and include back tax
collection of approximately $780,
100000.
Outstanding in the budget is the
appropriation for national defence
which totals $546,433,S70. The
army asks for $256,552,S77, which
would provide for n regular army of
125,000 men and 10000 Officers.
The navy wants $2S9, ,433,S70, which
would support $4,000 men. The ap-
propriatons would maintain the
land and sea forces at their present
strength and are the lowest since
the war.
Referring to the large amounts
which thd federal government is
contributing to the states each year
for road building and other projects
the President said he was concerned
because he felt his policy was caus
ing large increases in state, county
and municipal indebtedness. He
made no direct recommendation on
this subject, however. He also in
dicated that he does not approve
large expenditures for research, inn
provement and development, which
have no business with "the business
of government. -
Outlook is Encouraging
"That we approach the com
mencement of the fiscal year 1924
with an estimated surplus of $50,
969,125 is certainly most encourag
ing" said Harding. "While | an
hopeful that there will be no deficit
in the current fiscal year 1928, il
such deficit does occur, this sur
plus for 1924 will take care of it.
"Thc sum- of 81 ,256, 6,715,939 is pro
vided for military functions, which
includes military pensions, retire
ment pay, annuities and world wal
allowances and national defense,
the President said
The amount recommended for n6
tional defense is divided into tive
classes: Army, $256,552,S ,SS2; Navy
$2S9,SS9,993.
"The amount recommended TO
the maintenance and operation o
tho army viii provide for a regula
army of 120e0 Officers and l25,00
4 enlisted men, exclusive of the Phil
Appine Scouts, which is the fore