The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1922-09-30
By FREDERICN :. HAsKIN

WASHINGTON, D. c., Sept. 30
The newly devised American budget
system is facing crisis which will de-
termine whether or not our form OF
government is adaptable to this meth
cd of scientific finance. For many
years the congress has been beseiged
with proposals to enact a bldget syS-
tenn as a means of instituting econo-
mics and placing receipts and expend1.
lures of the treasury in such form
that uncertainty would taken cut of
the government fiscal operations. Such
system was instituted something
over a year ago and has been in opera
ton.
General Charles G. Dawes was the
first director general of the budget.
With characteristic vigor he effected
economies in operation of the vast
government machine, cutting out du-
plications and saving waste in scores
of ways. 1t is difficult to determine
what is saved in governmental opera
tions because what might have been
spent is so vaguely potential quaint
ty that it is not readily susceptible OF
reduction to figures. 1t is generally
admitted, however, that General
Dawes administration of the budget
cut down waste and extravaganza to
the extent of many million OF dollars.
On the first day of July General
Dawes turned the bureau of the budget
over to General H. NJ. Lord. General
Lord is man of equal if not creator
vigor. He has found some fault with
details of his predecessors admins
tration and hopes to make even great
er savings. He has intimated that
while much has been done in the way
of economy the big task of holding
the expenses down lies still ahead o.
the bureau of the budget.
Recently the several executive de
partments. boards, bureaus, and com
missions submitted to the bureau es
Inmates of appropriations for the en-
suing year. These figures were large
ly in excess of what the director o.
the budget thinks safely can be allow
ed if balance is to be maintained be
tween receipts and expenditures. Tn
estimates have been sent back for re
wilson and a maximum figure quotes
to each department within which it
estimate must stay.
The budget director is proving or
durate He will not relent and Civ
the various department heads large
allowances. Every executive in tn
government has pet schemes requiI
ing appropriations and they all figh
equally hard for them. The directo
of the budget looks the income of tn
government squarely in the face an
if the estimates of appropriations e>
coed the income, he says mo" very de
cisively. ~
May Appeal
To Congress.
The next steps of the offended d.
partment executive is to go straigh
to Congress. The budget bureau wi
not allow him funds to carry on in
portant agricultural experiments, fc
instance. He interests some member
of congress and gets special bills intro
duced appropriating the desired sum
This procedure is followed all dow
the line.
This is where the crisis appear
The bureau of the budget puts its {
K on the restricted, regular items &c
maintenance and operation. These e
penSes are calculated to take up til
whole income of the government. The
come these separate appropriate
bills, with long and often convincin
arguments in their favor calling Il
Will congress hold the expense
down to the budget estimates or wi
it pass the extra appropriation bills
II the appropriations are confined
the budget, the budget system win
If the extra appropriation bills al
passed the budget system is practics
ly scrapped because Its effectiveness
rendered void. The very theory of
budget system is to keep within a &c
tain fixed limits, balancing income ar
expenditure. In such a system Il
toes of a good many government {
ficials are trod upon rather ruthless
because items must be slashed fro
the estimates to make the figures BIZ
ance. If congress calmly walks arouI
the budget and adds various kinds
special appropriation bills, the who
purpose of a budget is defeated and Il
same situation obtains as before Z
budget bill became law.
The question will be threshed out
congress at the session this whit
and it is expected there will be fiji
works in the process. The Preside
strongly upholds the budget syste
and has declared unequivocally til
appropriations of money must not {
coed the government income. He
adopted the economy of Micawber. t
famous character in Dickens who
homely discussion of the budget i'd
aptly expresses the situation. He sa
In effect: Income. S2,005; expen
ture, $4,000 means happiness. IncoI
$4,000; expenditure, S2,0o5 mea
misery"
President Backs
Budget Plan.
The President takes the same vi
and will insist that the Americ
government seek to have surplus
revenue rather than an excess of
penditure, Micawber's analysis
lated TO the affairs of an individl
family but the case is not greatly