Evening star., 1923-06-18
COST OF GOVERNMENT
CUT QUARTER BILLION,
PRESIDENT REVEALS
Text of Address
By President on
Federal Economy

was held the first meeting of the
business organization Of the gov
ernment. You were called to-
gether at that time to afford me
opportunity to lay before. you the
problem of diminishing the cost
OF government and to enlist your
h1p and cooperation in its re-
o'iction. We came out OF the
world war with a vastly increased
public debt and a greatly expand
ed public service. 1t was impera-
tive that we should curb the ris-
ing cost of government in its
peace-time activities. and so we
met together in that first meeting
to discuss and formulate definite
policies Of retrenchment and
methods for carrying them into
effect. As 1 look back over the
past two years | feel that
organization was an epoch in the
administration of government
three similar meetings. all of
which had as their keynote
greater economy and greater eff
ficiency of the conduct of the rou-
tine business of the government.
We are now at the close of the
current fiscal year, and this Is an
opportune time to take stock of
year.
On January 90. 1923. the date of
our last meeting. we faced an
apparent deficit of S92AO0.0n0 in
expenditures over receipts for the
current fiscal year. 1923. The fore
cast today Is that we will end
the fiscal year with balance Of
ordinary receipts over expendi-
lures of approximately 100000
600. This is a signal achievement.
and while we have been greatly
aided by unforeseen increases in
ordinary receipts and reduced
operations in capital funds, we
cessful balancing Of the budget
with a substantial balance on the
right side of the ledger without
the material assistance which you
have rendered. You can all point
with pride to the showing made
this fiscal. year, as il is due In
part to your untiring and unselfish
devotion to the campaign for
economy in the administration of
the routine business of the gov
ernment. You can take further
pride in the fact that while we
will close this fiscal year with a
surplus 3oft receipts over expendi-
lures OF s2eo. coo, ,ooo, there has
been an actual reduction of ap-
expenditures of the departments
and establish ments enkaged with
the ordinary business of the gov
ernment for the corresponding
expenditures for. the last fiscal
year. We have thus to our credit
,tn
financial transactions for the cur
rent fiscal year.
Valve OF Team Work.
The co-ordinating of the routine
business of the government and
the development of team work
both between and within the de-
partments and establishments have
have been most important factors
in reducing the operating expenses
OF the government. i cannot over
empha size. the Importance of pro-
highly beneficial team work: 1t is
of prime necessity il we are to
reap the full benefit of the intelli
gent effort we have already made
in the coordination of the govern
ments business. And it should not
ments and establishments in Wash
ington, but should be extended to
the field activities. An admirable
start in this direction has already
been made by the establishment of
Federal Business Associations. Six
ty-nine of these associations have
already been formed in the larger
cities embracing the officials and
employees of all the government ac-
tivities located in these cities.
Certainly no business concern
should have several activities To-
Gated in one place without bring
ing them together in contact, one
with the other, SO as to develop
community of interest and action.
These Federal associations meet
regularly. just as we are meeting
here today, and through their dis
cussion of their respectlve Prod
lens and requirements find ways
and means for more eff1clentiy
and economically. carrying on the
business Of the government. Inev
, should be encouraged and aided
In a few days we commence an
dent that at its close we VIII be
able to point to even greater
achievements in our campaign for
retrenchment. economy and efti-
cheney than have been accom-
plished this current year. The
appropriations for the coming
fiscal year amount in round fig
ures to sS,7OS, 100000, which is
$234. 1000. 900 less than the appro,
priations for the current fiscal
wear. AS compared with the esti-
mate presented to Congress, the
appropriations for 1924 are but
S7,S25,000 less than the amount
asked for in the budget and the
estimates supplemental thereto.
Action by Congress on the. esti-
mates for 1924. therefore, amount
ed to practical ratification of the
budget and the supplemental esti-
mates. This in itself shows how
carefully, how painstakingly were
the estimates prepared, and fs
source Of much qualification to the
chief executive. It is the first
time in many years that executive
requests for appropriation and
Legislative grant have been in
practical accord.
-. Dehcit Is Faced.
A revised estimate just COM
pleted indicates that the ordinary
receipts for 1924 will amount in
round figures to s3.63S.000. 900 and
. S507, 100000 for public debt reduc-
tion. will total S3.66S. 900. 900. This
. indicates deficit of S30.000.000
This deficit must not only be
wiped out, but we must close the
coming year with a substantial
. balance TO our CFeQlt. IT lS my
earnest desire that the eXpendi-
lures for the coming. year, ex-
Guiding the $500. 600. 900 for debt
reduction. be kept within $4,000
100000. Your assistance is needed
to accomplish this and I know
that ] can count on your loyal
and unwavering support.
: Right here i want to leave this
further word with you. The ap-
propriat!ons, made by Congress-
are the measure of the maximum
amount of business which may be
planned for the fiscal. year to
which the, appropriations relate.
They are not the measure of the
minimum amount Of business
which may be performed. There
fore, in planning your expendi-
ture program for the coming fiscal
year and apportioning your funds
lasader ouch nraRra should