The New York herald., 1922-12-25
Continued from First Page.

Of Congress to promote their personal
ambitions. All sorts Of logrolling and
wire pulling was employed to get
through concessions that the business
Of the Government did not legit!mately
justify. AS result many appropria-
ton bills were loaded down with items
for which there was no actual neces-
sity. The budget system has put a
stop to these and other undesirable
practices permissible under the old
scheme.
Instead Of dozen committees audit
Ing the Government estimates only
two pass upon the appropriations con-
tained in the budget. These are the
appropriations committees Of the two
houses. Supervision Of the budget
estimates Is conducted by subcommit-
tees Of the two appropriations COM
mittees with a minimum OF trouble.
The budget reports are SO complete
that the appropriations committees
find little opportunity or justification
for making material changes.
Elimination of Riders.
Another reform which saves time
under the budget plan is the elimina-
ton of all - controversial legislation
through the introduction OF riders
to appropriations bills prepared by the
committee. The new budget system
was established by Congress in June,
1921, on the recommendation Of Presi-
dent Harding. 1t was, in fact, one Of
81 re cf No A nj a
tration. President Harding induced
Gen. Dawes to set aside his own per-
sonal interests and devote himself to
the preparation of a budget policy.
Even the most severe critics of the
President and Gen. Dawes now admit
that the Presidents suggestion was
wise and that the General made good
Job in carrying ii out. In recommend
ing the budget system President Har-
ding predicted that aside from the
great benefits to the Government
through the vast saving accomplished
more important will be the effect in
setting an example for State and
municipalities"
The President added that "there is
not a menace In America equal to the
mounting State. county and municipal
expenditures undertaken without sense
of financial responsibility"
Basic Principles of Budget.
In formulating his plan for the
budget system Director Dawes laid
down these four basic principles TO be
observed:
The budget bureau TO be i'm
partial, impersonal and non-politi-
cal.
2-The Director Of the Budget in
the matter of Government business
administration has no responsibility
under the law save for the admin
istration Of his own bureau. He is
simply an adviser OF the President
and of Congress in the matter OF
correcting business administration
evils.
3-The Director of the Budget In
gathering information for the use OF
the President. acts for the Presi-
dent. and his calls upon the chiefs
of bureaus and other administrative
offices for purposes OF consultation
or information take precedence
over the Cabinet head of the depart
ment or any head Of an independent
organization.
THE budget representative OF
each department being appointed by
the Cabinet heads will present TO the
Director Of the Budget the views OF
the Cabinet head upon the wisdom or
conclusion drawn by the Director OF
the Budget for the use OF the Chief
Executive and Congress: but as In
the case OF bureau chiefs in other
offices the call Of the Director of the
Budget for their presence and adj
vice takes precedence over the Cab
met heads.
The plan outlined above prevailed
during the preparation OF the budget
Of last and this year. although Gen.
Dawes and his aids encountered n
great denl OF opposition due To archaic
and traditional prejudices. Once con-
vnced that the rules must be followed.
however. ambitious bureau chiefs and
logrolling Congressman desisted from
their attempts to change. the conclu-
sions of the commission by appeal TO
legislative sympathizers. Officials OF
the Government and In fact leaders in
Congress admit that the budget
scheme is a success.
Under tho budget plan tho President
is made the business head OF the ma
ton and stands in the same position
as the executive of a big corporation.
Soon after his Inauguration the Presi-
dent declared for pay as you enter
system" of running the Government
He declared that the budget should
not appropriate money from the
Treasury unless the money was
actually there TO pay the bill.
Another policy enunciatod by the
President was that no appropriations
for new buildings or pork barrel prof.
Gets should be included In the budget
As n result Of the latter policy Con-
grcss has practically abandoned the