The Delta independent., 1922-07-07
PUBLIC EXPENDITURES
GETTING BACK TO NORMAL
UNDER REPUBLICAN, RULE

last few years shows that under the
present administration the expenses
of the government are getting back tC
normal This analysis has been made
by Representative Martin B. Madden
chairman of the House Committee on
Appropriations, who probably is the
best informed man in the country re-
garding public expenditures.
The analysis shows the routine ex-
penses of the government in 1919
were $4,000, 100000 These expenses
were appropriated by Democratic
Congress upon estimates submitted
to it by the Democratic administra-
tive officers.
The cost of running the govern
ment in 1920 was reduced to $780,
100000. A very large percentage of
this drop in running expenses was due
to the fact that the Republican Con-
gress elected in 1918 mercilessly
slashed the requests for appropria-
tions submitted to it in December,
1919, by the Democratic cabinet Of
ff1cers and other Democratic execu-
tives.
For the year 1921 there was fur
ther reduction in government expense
to ST, 100000. This cut was al
most wholly due to the action Of the
Republican Congress in cutting down
the estimates submitted to it in De-
cember, 1920, by Democratic cabinet
officers and other Democratic execu-
dves.
For the current fiscal year, which
ends June 80, the routine expenses of
the government will approximate $3,-
o47, 100000. This reduction is credit
ed to the action of the Republican
Congress working together to effect
program Of economy in public expen-
ditures.
For the fiscal year beginning July 1
next, it is estimated the expense of
the government will approximate $3,-
$50, 900 900. This will be about the
minimum OF public expenditures for
a period Of years. Before the war, as
for example the year 1916, the annual
expenses of : the government were
about $1,250,0O0,O00. The war period
added approximately $2,O0O,Oo0,00O to
the annual fixed charges of the gov
ernment. These fixed charges include
the $1,000, 100000 annual interest on
the $23, 900, 100000 public debt, which
the Democratic administration piled
up during the war. It also includes
the expenses connected with the cafe
Of ex-service men,-the cost Of hospit-
alization, vocational training, etc. It
also includes the money raised by
taxation which is set by as sinking
fund to repay the Liberty and Victory
impossible to dispense with any of
this 100000 900 extra cost until the
public debt is SO materially reduced
that the interest charges will be ap-
preciably lower.
Adding this $4,000. .OOO, 900 to the ST.
$50, ,OOO,O 900 which it cost to run the
government under normal conditions
prior to the war, we have the sum of
$3.50, 600, 900, so that the estimated
expenditure of $3.50, 100000 for the
coming fiscal year represents an in
crease of only $40O, 100000 in the op-
Grating expenses of the government
compared with pre-war times, or an in
crease Of 80 per cent.
To phrase it another way, the es-
timated expenditures of the govern
ment for the next fiscal year is $3,650,-
100000 OF this sum, 100000, 900 is
fixed charges in the form of interest,
sinking fund and soldiers relief. This
leaves $3.50, 900, 900 for the running
operating expenses Of the govern
ment as compared with $3.50 000, 900
for the, running operating expenses of
the government in pre-war times.
This is conclusive evidence that the
presentadministratio is working hard
to cut down public expenses. This
vigilance is exercised both by the ex.
ecutive departments and by the Con.
gress. Under the budget act each de-
partment, bureau, commission, etc.
of the government makes a very sue
cessful survey of its needs and sub.
mits to the budget director an esti
mate of the funds it requires to oper
ate on what it regards an economical
basis. The budget director in turn
reviews these estimates and in very
great many cases makes a reduction
in them After the budget director
completes his review OF all estimates
to the President, who reviews 1t. Al
ter the President completes his sur
vey the requests are sent to the House
of Representatives Appropriations
committee. 1t is sent to this com
mittee because under the Constitu
tion all measures providing revenue
must originate with the House of Re
presentatives, and logically the same
body which originates revenue meas
ures must know how much revenue II
needed. The House Committee or
Appropriations holds hearings as 9
result Of these hearings the budget re
quests are still further reduced.