Evening star., 1923-06-18
Tells of Changing
Expected Deficit
Into Surplus.
WANTS TO CONTINUE
ECONOMIES IN 1924
Gen. Lord Explains W ork-
ing of Budget to u. S.
Business Heads.

Proclaiming a $20O.OOO0OO surplus
for the federal fiscal year, 1928. end
ing June 80, pointing to cut in ex-
penditures over the previous year of
more than quarter of billion dol
lars. and sounding the efficiency
with-economy" battlecry of his bud
get bureau. President Harding today
called upon the business organiza-
tion of the government in session at
Memorial Continental Hall to slash
sharply at government expenditures
for the next two years. But he pre-
dicted significantly that "The day
will come when we will deal with
increases"
The President made no mention Of
tax reduction. He announced a pro
spective deficit of s3O.o0o.0o0, accord
| ing TO present estimates, for the year
ending June so. 1924, instead of a
previously anticipated surplus, but
| said he confidently expected not only
! that the deficit would be wiped out,
! but that expenditures would be cut
! by more than half billion, and "be
kept within s3.oOO.o 100000" He fur
ther added. ~ expect you all to ef-
| feet some savings from your appro-
| priations for the coming fiscal year
Surplus Obtained.
The results of the present year
showed prospective deficit of sS23-
irI, iptn
! 5000, 100000 surplus.
! For 1924, as set forth by President
Harding and Director Lord of the bu-
| reau of the budget, who addressed
the meeting at length, the latest re-
rised estimates indicate total re-
ceipts will amount to s3,63s.4S44s3
ard expenditures s3,6Ss.53+911. MAX
| ing the prospective deficit s50,044.-
52S. as against the estimate in the.
December 4 budget of surplus OF
! $3.50, 600. 600.
For 1925, the President said. he ex-
pected the estimated expenditures to
est on the public debt. and. "exclu.
sive of the amount required for the
Post Office Department, not to be I'm
| excess of s1,700.0o0.000. To reach this
amount the estimates for 1925 must
| be $126.000.000 less than the appro-
| priations for 1924"
Proposed Reductions.
Thus. broadly speaking, the gigass
tic reductions effected. and expected
to be effected in government expen-
ditures for three years. are as fol-
lows 1923, 256,o00,0OO: less than
1922; 1924. s2S4,Oo0,o0 less than 1928;
1925, S126.000,000 less than 1924.
The Presidents prediction concern
| ing increase" instead of "retrench-
! ment" of expenditures came toward
the conclusion of his address. and was
| considered significant, revealing that
| the administration believes that
| some time 1t will come to the turn
| in tho road. when II Will no longer
be able to. reduce.
Il can understand" said the Presi-
| dent. in this connection. how the
| constant call for reductions somewhat
| tries your patience. But day VIII
| come when we must deal with In
! creases, because there must be ex-
! growth of cost in the government of
/ a growing nation. Our big problem
| is to find the irreducible minimum
! upon which we may consistently en-
large.
! Successes of Years.
| The operations of the present year.
| now drawing to a close, the President
| said showed two signal achieve
ments"-the transfer of the estimated
deficit into a surplus, and "an actual
reduction of approximately $256,000,-
| 900 in the expenditures of the depart
| ments and establishments engaged
with the ordinary business of the
| government from the corresponding
expenditures for the last fiscal year.
The elimination of a deficit and
| creation of a surplus during the pres
| ent year, it was explained by Presl-
ldent Harding and Gen. Lord. were due
| to several factors, including the un-
| foreseen increases in receipts, reduced
| operations in capital funds. the CO
| ordination of routine business of the
government and development of team
| work everywhere. Customs receipts
| for the year are now expected 10
| show a s200,O00,000 increase over
| earlier estimates, while the increase
| in internal revenue collections Will
| be about $300,000,00
Estimate of Deficit.
! The previously anticipated deficit
for the present year. which was
J turned into surplus. had varied ac-
/ cording to estimates at different times
from $S23.000.000 last July to S80.-
| (Continued on Page 2, Column %
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