The New York herald., 1922-05-08
s1,6O0,OOO,OOOCUY
FROM us. EXPENSES
BY BUDGET SYSTEM
Indicated in Dawes Report
for This Fiscal Period
Compared With Last.
INCREASE OF RESERVE
Directors Data Will Be
Submitted to the House
Committee To-day.
COOPERATION is PRAISED
Actual Saving Under Execu-
tive Control Plan Is Put
at O7,500,OOO.
COOPERATION is PRAISED
Special Dispatch to THE NEw YokK HERALD.
New York Herald Bureau,
Washington, ID. c., May z.

Spcciot OtSputch 70 The NEW hokR f1HlALD.
New York Herald Bureau,
Washington. ID. c., May q. !
An actual saving Of more than
81 500, 100000 in governmental expen-
ditures during the fiscal year 1922. as
compared with the expenditures dur
ing 1921, is forecast in a report to
Congress by Charles G. Dawes, Di-
rector of the Bureau of the Budget,
which will be submitted to the Appro-
priations Committee of the House Of
Representatives tomorrow.
Further. Director Dawes expresses
the belief, based on the estimates
which he las had prepared, that the
actual expenditures during the year
will be s45.550,336 less than was indi-
Gated by the December budget esti-
mate figures of $685., 7,922.366. or
$3,s22, ,S72, ,o3o. He reports also that
the departmental reserve set up at the
beginning of the installation, of the
budsetary system will show net in
crease Of $23 ,430.346 over the original
amount Notwithstanding transfers out
of this reserve totaling approximately
100000
The report OF the Director results
from the resolution offered in Con-
gress on February by Representa-
tive Byrns of Tennessee asking the
President to inform the House Of the
manner in which reported savings had
been made. from what Congressional
-. A t. <xe<
President Harding instructed Director
Dawes to ssunply TIE Information
asked for to the Appropriations Com
mittee.
volumni0us Report.
There are moro than ninety closely
printed pages in the. report. 1t contains
the Byrns resolution, the Presidents let
ter to Director Dawes. the report of the
directors and page after page of tables
and compilations In which not only are
ell the departments of the Government
dealt with but transactions involving
supplies and commodities of all sorts.
transfers of appropriations and many
Col. Dawes. after asserting that the
bbubCt law was a. iiOH- PdIliSdii PIOQuCts
and that members of both parties IN
Congress. have contributed time and en-
crgy to making the budget work suc-
cess. says:
'The prime and essential cause OF the
economies and improvements In admins
trstion which have been effected during
tie present fiscal year in the conduct of
the routine businesseof government has
bseu the assumption by the President of
- tt..l- - II R..rr .rr-rf
ties as the head of the business organiza-
ton Of government.
Some of the agencies for the trans
mission OF Executive pressure plan and
policy have been established upon the
advice of the Director of the Budget and
the President has used the Budget
bureau itself. among his other agencies.
for the imposition OF Executive policy.
But the activities of the Budget Bureau
may be considered as simply incidental
TO the change in Executive attitude"
Next Col. Dawes praises governmental
employees and department chiefs for
their cooperation. He comes then to
this fiat declaration:
"As win be noted in the body of the
report which follows the expenditures
OF the Government for the fiscal year
1922 have been reduced in a present esti-
mated amount of over $500 900, 900
from the 1921 figures. Only portion of
this large reduction In expenditures.
however. can be properly attributed to
the imposition of unified plan and
policy upon the business organization of
the Government"
Methods of Determination.
Tho report then goes OH to deal with
tho methods by which savings may be
determined. pointing OUT that an appro-
rriation by Congress Is simply an au-
thorization of expenditure: that IL Con-
press overestirates the unexpended bal
ance Is not a real saving: that II II
underestirnates deficiency appropria-
tion may not necessarily be sign of
cxtravagance. The Director calls atten-
tion to the relation OF efficiency to ex-
pendituro and says that appropriation
limits in the past have failed 10 effect
real economy. From the first there
should have been. lie contends. Executive
control and Executive responsibility over
tho business organization of government
and between the business organizat ton
snd the Congressional appropriating
power.
Pointing out that the estimates in his
report deal with what Is really "thc
largest business in the world" the Dircc-
tor admits that the machinery for in
vcstigation In limited and that there
Is liability TO error in the estima tes
But for the first time. he says, the gov
crnmental business machine has func-
toned In the present fiscal year with a
oonse OF responsibility TO central con-
troll. bringing a marked Improvement
tho extent OF which can only be de-
ycIoped by time''
Referring then 10 the tables which
Coufiuuad 0u pnga Eour