The Washington herald., 1922-12-05
BILLION !
GUT MADE IN
new BUDGET
President Calls for Drastic Re-
ductions In Government Ex-
penses In l9z3-24 Estimates
TWO BILLIONS FOR VETS
Harding Warns Of "Extraneous
Activities" Declaring They
Mean Increase IN Taxation
BY CniveruaI Service,

Expenditures totaling $780,
.s4s,234 and receipts Of $3,3e1,- :
tl2,359 are outlined for the Ma
tional Government in the budget
for the fiscal year ending June
80, 1924, transmitted to Con-
gress yesterday by President
Harding.
FBARS DEFICIT THIS YEAR.
The estimates show a cut OF
nearly $526.000.o60 In expenditures
as compared with those of the cur
rent year. and a corresponding drop
Of $6s. 100000 in receipts. The gov
ernment.- II is stated. faces q deficit
of about $274.00o. 900 for the year
ending June so, 1929.
Proposed appropriations for the
next fiscal year total 1890, ,s32.
q reduction OF nearly 5000. .000. 900
from appropriations for the current
year. OF the authorizations pro-
posed, barely $1,000. 200, 900 is pro-
vided for the operating expenses
of the government. The balance
OF approximately $4,000. DOC, 900 In
set aside for the Veterans Bureau,
pensions and the reduction OF the
public debt.
President Harding asserts posi-
lively that. 50 far as the operating
expenses Of the government are con-
cerned. ANY material reduction will
tnecessitate a change in the admin
istrative policy upon which the es-
Inmates are based"
"A reduction In expenditures
would undoubtedly result from a
reorganization of the departments
and establishments upon q more
scientific basis" the President says,
but we cannot look to this alone
to effect such a materiA reduc.
tion in the cost of government op.
GRAFTON as would Justify the ex.
preston of hope for a considerable
lessening OF expehditures in the
years to come"
STRESSES ECONOMY.
In urging the necessity for econ.
omy. President Harding does not
hesitate to direct Congressional at.
tention to the, fact legislation pro.
viding for~''extraneous activities
Of the Government pursuant to pop.
ular demand must certainly result
in taxation to provide the requisite
funds. Considerable sums. he points
out. already are being expended for
Federal aid in lines Of research,
| improvement and development which,
while having no direct connection
with the operations Of the business
Of Government, have grown to be
come a recognized part Of its &C
tivities.'
Whether the government will be
able materially to reduce its expen
ditures depends, according to the
President. upon whether there Is &c
be a curtailment or an expansion OF
these "extraneous activities. which
already have added greatly to the
annual drafts upon the Treasury"
Approximately 81 .250. .000, 900 Of the
proposed appropriations are Sc,
aside for what the President terms
military functions. OF this total
$710.2S2.05s Is for pensions. annui
ties and world war allowances. while
the balance, about S546, 1000, 900, Is
actually for national defense.
Civil funoGons are given $685.
| 5ss,0s6 by the budget. The Ship
ping Board and Emergency Fleet
Corporation receive approximately
SoV,OOV,OUO OI tHle tOldl, oHc-ndu VI
their appropriation for the current
year. About $500. 900 Is provided
for general law enforcement. includ
ing So, ,000, 900 for the administration
OF the prohibition and narcotic acts
Nonfunctional appropriations totnl
81 1855, ,720. .602s including $3.50. .0o0. .006
for interest on the public debt and
sS45, ,0O0, 0,0e0 for public debt retire
ments payable from ordinary re
ceipts. On June so, last. the Presi'
dent points out. the public debt was
s22, ,963 .3S1 .7os, a reduction Of more
than 81 900 ,0oo, 900 from the total a
year earlier.