Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1922-12-07
HARDING SUBMITS
FEDERAL BUDGET
FOR FISCAL YEAR
President Points Out That
Reduction in Expenditures
Can Come Only by CurtaiI-
ing Development

10 - " Wv f~'' 'O''N
WASHINGTON, Dec. e.-Presi-
dent Harding, in transmitting the
annual federal budget for the next
fiscal year, frankly told congress to-
day that whether there was to be
any material reduction in govern
ment expenditures and in taxes in
future years would depend largely
on whether there was to be a cur
tailment or expansion of federal aid
in lines of research, improvement
and development.
Placing the estimated government
outlay in 1924 at $3.50 ,S43,234, a de-
crease of about $500, 100000 as COM
pared with estimates for this fiscal
year, Mr.. Harding called attention
that two-thirds of this total was on
account of practically fixed charges,
such as the public debt, national de-
tense, pensions, World war allow
ances and federal aid. There was
left, he said, only about a billion dol
lars in charges subject to admins
trative control and against which,
he added, the retrenchment policy
of the government had been directed.
While expressing the opinion that
some further reduction undoubtedly
would result from reorganization
of government establishments on
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 considerable lessening of ex-
penditures in the years to come.
Federal Aid
Taking UP the question IF federal
aid. the executive declared that this
was a rapidly broadening field OF
expenditure and that there was
question as to how far the govern
ment should participate in it. He
added that he 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 de-
mand and I 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 fulfllmentl Of the
popular demand.
I'm the efforts which have been
directed to reducing public expendl-
lures, T have been much concerned
in apparent increasing state, county
and municipal Indebtedness, and l
am fearful lest this condition may
be in part attributable to the ex-
penditures made by the government
pursuant to its federal-aid laws, as
many of these state laws require
state contributions 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. 969, 125,
as compared with an estimated de-
felt of $273,93S.712 for this fiscal
year. The president said, however,
that he was hopeful that the esti-
mated deficit for 1928 could be re-
duced in the remaining seven
months and that the close of the
year next June 80 would show a
balanced account.
Estimated expenditures of $780,.
S43,234 for 1924, which are exclusive
Of the postal service, compare with
estimated appropriations of $3,07S,-
$40, 331 for the same period. Mr..
Harding explained that the expendi-
lures would represent actual cash
Withdrawals from the treasury, in
Guiding some on account of appro-
priations in previous years.
May Overcome Postal Deficit
Another deficit in postal opera
tons was forecast for this year, but
Mr.. Harding said it was estimated
that through proper readjustments
there would be a surplus of postal
revenues over expenditures in 1924
amounting to 1852, 439. For this year
postal costs were placed at $685.
996,841, or an estimated deficiency
of s31, $50, as compared with an
actual deficiency in the last fiscal
year Of s64,346,234. The 1924 costs
are given at s5S4,653,151.
The president told congress that
en- appropriation OF 1855, 1852, 1897 rec
commended for the army would pro-
vide for a regular force of $4,000
Officers and $4,000 enlisted men,
exclusive of the Philippine Scouts,
which is the strength now authoriz-
ed By congress, and would enable
strength of the national guard from
100000 officers and men to $4,000
officers and men. For the army
air service $12,S71, 500 is proposed,
or $23,500 less than appropriated
this year. Mr.. Harding said this
sum would permit the service to OPP
crate efficiently in accordance with
existing policy.
For the navy s289,SS0,993 is asked
This amount, the president asserted,
would provide for the present en-
listed personnel of sc 900 men; main
tain all present ships in commits
sion, and make provision for con.
tinuing all new ship construction in
privately-owned yards, except for
reduction in speed of construction
on three light cruisers.
Provision is made in the budget
for s253,000, 900 in pensions, $434,-