davidaulloa/AmericanStories huggingface dataset:
Evening star., 1923-11-11
BUDGET ABOLISHMENT
MERELY A BUCABOO
Federal Officials In and Out of Con.
gress Firm for System Saving
Many Millions to U. S.

meet those expenditures. Now the
President considers these estimates
not only with reference to their in
trinsic merits. but with reference to
the condition Of the public purse,
prospective resources and the broad
policies of government.
He, the President, is under the
strongest possible incentive to keep
the total asked for within the total
anticipated revenue. so that he can
refrain from asking additional taxes
and, If possible, show a surplus avail
able for reducing the public debt or
reducing taxes.
The new system has meant the COM
plete change of aim from one where
the effort was made to secure the
maximum grant of funds to one where
effort is made to keep and demand
within the lowest limits compatible
with the public welfare.
Furthermore, after the grant of
funds is made the President is under
the strongest possible incentive to
control the expenditure of the funds
granted, in order in this way also to
have the administration show n sur
plus rather than a deficit. Under the
old system the spending services al
most as a matter of course spent all
the money given to them. Under the
new system the President, in effect,
says to the spending services: See
how far you can go in the way of
carrying on your activities properly
Wi oil I,a Ao&
has been allotted to you.'
Savings Run Into Millions.
There can be no question that un-
der the new system, with incentive
placed on restriction of estimates
and expenditures rather than secur-
ing the largest sum possible and
spending it all. a saving running into
many millions of dollars a year has
been effected.
1t is inconceivable that there can
be any real demand either inside or
outside of Congress to give up this
vicious plan.
Now, in regard to the second phase
of the budget-action upon 1T. Under
the old plan there was no one COM
mittee having the duty and RESPONSE
bility of protecting the Treasury. The
old committee on appropriations
sought to do this in a measure, but
its hands were tied by the fact that
the framing of many appropriation
bills rested in other committees.
These other committees were inter-
ested in securing funds for particu-
lar branches of the government and
did not feel that they had any re-
sponsibility for general financial
operations.
Under the new system, to this one
committee Congress and the people
look for the protection of the Treas
ury by keeping down the grant of
funds in the same way that the peo-
pie now look to the President to keep
down requests for funds and to see
that funds granted are only expend-
ed as imperatively necessary.
In brief, a system Of rigid control
all along the line, with a definite
location of responsibility, has been
substituted for one where real con-
troll was almost wholly lacking and
was so diffused that
none could be held to account for ex-
travagance in the requesting. voting
or expending Of public moneys.
Evening star., 1923-11-11

it is thrown out Of ONCE at the next
election.
England will always offer a free
market for the entry of goods from
tho United States. All she hopes for
is a square deal in return. We de-
sire to live, work and pay for what
we owe, but If the United States pre-
vents us from trading, we shall be
unable to do So"
Here I broke in to point out that
with British industry getting back on
its feet, all Of the cities were still facing
a gigantic unemployment problem.
What" asked, lis the season."
perhaps one Of the most important
reasons" Sir Arthur explained, "is
our system OF unemployment in
surance or relief doles, which has
frequently paid men as much or
more than they would get II stead
lily employed and which has put a
premium on pauperism. Men have
got out of the habit Of working. 1t
was supposed to give them some
thing for nothing, but instead 1t
robbed men Of their souls 1t did
more to debase English character
than anything know Of In history.
IneMcie1cy II Charged.
"Also it was ineficiently admin
istered. Men had to stand in line
half q day every other day in order
to report that they were out of work
and by the time they had reported
it was too late to look for a job.
Records were not kept in business
like way. There were hosts OF in
spectors, some of them overlapping,
with q tremendous overhead ex-
expense. For political reasons these
inspectors never refused relief to
any one. There were cases in which
one member of the family, being out
Of work, was drawing dole, while
the other members were making
ample wages to support him. In
some cases men actually received
moro money idle than they did while
employed It encouraged strikes be-
causs men could got doles while re-
fusing to work. Naturally, It takes
Evening star., 1923-11-11
U. S. Labor Costs Declared So High British
Manufacturers Will Win World Trade

time to break labor Of the unem-
ployment habit"
would you advise the United
States to adopt the dole system?"
IT certainly should not"
why. then, did you adopt it in
England?'
Relied ON Taxation.
"It was a necessary evil. What
could we do. We had between one
and two million people out of work.
We could not let them starve. Any
other nation faced with the same
situation would have done the same
thing"
where did all Of tho relief money
como from?'
Chiefly from the upper classes by
taxation. Public assistance cost about
1850 100000 last year and all but q
negligible portion was raised by
taxes Let me show you some inter-
esting figures which will give an idea
Of tho burden borne by the British
moneyed classes"
Az president Of tho Associated
Chambers Of Commerce Sir Arthur
has figures on everything in the en-
pire. He slipped file on the big
mahogany desk and used his pencil
as pointer.
You see that of tho $4,000, 900 pee-
pie in the United Kingdom, only
17,500,000 are parliamentary voters.
OF these, 100000 are liable to the
income tax. but 100000 are ex-
empted by allowances, so that the
bulk of British taxation is borne by
the remaining 100000. And ac-
cording to our equalization law, part
of the taxes raised by the wealthy
districts are applied to bolster up
the taxes Of the poorer areas. For
instance, the rich shopping section
in tho West End helps to pay for the
unemployment relief in the slum
quarter of Poplar.
Computes Cost Of Relief.
ITO give you an idea Of how this
heavy taxation hampers the manu-
facturer, I have computed tho cost
of poor relief taxes which must be
charged up against every piece Of
StccA ~hlSh ACdNCS lily AdCIOAys duu
find that last year every steel axle
had its cost increased by So shillings
1h pence, as against only 2 shillings
7h pence in 1914. So remember that
while wages paid in England do not
equal your American scale, this heavy
burden of taxation means practically
the same thing. Every piece Of steel
we place upon the world market Is
that much more expensive because Of
poor relief taxation"
"Has not a considerable part Of
this relief money been squandered
on drink?" I put forward one of
the favorite arguments of Lady AS
tor and her prohibitionist sup
porters.
"on the contrary" returned Sir
Arthur. "And here are some more
figures which may interest you. Did
you know that the per capita yearly
consumption of beer in the United
Kingdom actually fell from 27.9 gal
Ions in 1913 to <15.9 gallons in 1925,
the consumption Of spirits fell from
0.7o to o.s6 gallons between the same
years, while the consumption Of vino
remained about stationaryr
Continued on Third Page.)
Evening star., 1923-11-11

But American industry seems pros
perous," I reminded him.
Yes, but it won't last You ara
filling the demands Of your local mar
kets, which since the war have been
dormant Your prosperity may con-
ttnue for some time-say, eighteen
months, but not much longer. With
your present high cost of productio
you cannot compete in world markets.
In my opinion America is shortly due
for three or four years of industrial
depression"
"And what is the remedyr" I
queried.
The remedy Is quite simple-on
paper. But since the United States.
like England, is q nation composed
almost entirely Of human beings, it will
probably take you three or four years
OF depression to understand that rem
edy. We in England experienced such
trade paralysis and now are just be-
ginning to wake up to the fact that the
only remedy is to cut labor costs.
Hits q. 8. High Tariff.
You IN America nave a double lesson
to learn. First, a reduction in the cost
of production Second, the truth of that
old axiom, II thou wilt not buy, thou
canst not SELL"
Sir Arthur loves fight, and with the
subject Of American tariffs he was back
upon his old verbal battlefields. He
threw his words at me as If were the
tariff commission or Mr.. Fordney him
self.
your high tariff makes it dinicult
and sometimes impossible for other
nations to sell to you. Therefore we
cannot buy from you. To complicate
matters you now hold over one-half
of the worlds gold supply. Not an un-
mixed blessing for you. by the way
but perhaps a blessing to US. For now
that you have become the greatest
creditor nation in the world. you will
have to reconsider your economic
policy. Little as I understand Ameri-
can politics. have noticed one thing
that every time tho republican
party passes q high protective tarin
Evening star., 1923-11-11
Sir Arthur Balfour

says
"American labor costs are so
high that they menace the Unit.
ed States with a serious eco.
nomic depression"
English manufacturers have
nothing to fear from American
competition in the world mar
kets on account Of American
costs Of production"
"The consumption Of beer
and spirits in Great Britain has
greatly decreased since 1913"
~Enslanfs experience in the
handling Of industries by gov
ernment has killed for all time
any notions which existed re-
garding naturalization"
~Unemployment insurance and
relief doles have put q premium
on pauperism and done moro to
debase English character than
anything I know of in history"
Evening star., 1923-11-11
BY WILL p. KENNEDY.

TIME federal budget system
doesn't stand in any danger
of being thrown in the dis
card. 1t is doubtful If ten
votes coulS 5e mustered in the House
or five in the Senate for abandon
ment of the system. All this fufore
about drive against the budget
system and return to "pork-baIsrer'
legislation in making federal apbro-
priationS apparently Is nothing sbut
a straw man set up to be- battered
down by interviews, as off-se3son
target practice.
This is the consensus of opikion
of federal officials and members. of
Congress in Washington and as many
others in all parts of the counting as
could be reached. Civic and business
leaders and specialists on good g5v-
ernment protest unanimously taat
they have been unable to find any
one Of Importance or any organiea-
ton striving sincerely to do away
with the budget.
Has Support OF Country.
OF course, there may be few mfsn-
power and to whom any restraint vor
control is irksome; who may preteNd
to a desire to go back to the old sI.s-
tenn, but the evidence is overwheltn-
ing that the new system has the en-
thusiastic support of the country. so
greater political blunder could pe
made than to wreck, or weaken in
any way. this federal budget SYSTEM.
which was in both party platforms.
Members of Congress are beieg
warned by the most influential inei-
viduals and groups of their constst-
uents that the federal budget mfst
stay.
When Congress acquiesced in TIE
proposal for federal budget system,
on which interest of those advocatilg
government reform has been focused
since the Presidents commission yn
economy and efficiency was set ep
more than twelve years ago, andxa
single committee of thirty-five merh-
bers was vested with entire contr9l
over the appropriating of funds,
there was. naturally, disgruntlemett
on the part of those members Ct
other important committees who haa
to surrender some prestige. "A reg
of these may want to get the olv
system back, but they can't stand us
against strong public opinion and ths
business interests of the country. I.
There are two phases of the budges
system: % The formulation of thS
budget; CD action upon the budget
The budget and accounting act OF
1921 provided for the formulation of,
the budget by the President, and gave5
him an agency-the bureau of the.
budget-through which to PERFORM
this duty. The result Of this system isr
that the estimates Of expenditure
needs as formulated by the spendings
services, instead of going to Congress-
without any check or control by the.
Executive-or any one interested in.
protecting the Treasury-now have to5
undergo a rigid examination by an
officer of the government. This officer !
is interested rather in protecting the
Treasury than in seeing the maximum ,
grant of funds.
Estimates Now Considered.
Furthermore, under the old system,
estimates were formulated by the
spending services without reference
to the income available with which to
Evening star., 1923-11-11
La Toilette to Go on Warpath
In Congress Against Combines

An open season on alleged trusts
and monopolies will be the feature
of tho next Congress, II Senator Rob-
ert M. La Toilette, republican, OF
Wisconsin has his way. And Senator
La Toilette may have his way, as he
will dominate a group of republicans
much more radical in their political
philosophy than the G. o. p. of the
northwest, who, on paper at least.
will hold the balance of power in
the next Congress.
What La Toilette believes and says
is, because of the position he will
portant today. both to those who
agree and those who disagree with
him, than at any time in his long
and spectacular political history.
Concede His Power.
Just now he is in Europe and re-
publican conservatives and radicals
alike are anxiously awaiting his re-
turn. His political influence today
is powerful, not merely in his own
state, but also particularly in the
states of Washington, Minnesota and
the Dakotas, and generally in every
farming community In the great
west. II he can keep his followers
together he will play an important
part in the organization Of the next
Congress, in the legislation passed
by that Congress.
Many believe he will enter the next
republican national convention as a
candidate for the presidential nom
inAtion with a sizable block OF dele
gates. He has much power either to
assist or retard the progress Of the
Massachusetts man who is now Presi-
dent
In reply to questions as to what
he considered the important work
before the next Congress. Senator La
Toilette called attention to state
msnts he has made since the adjourn
nent Of the last Congress- These
answer the questions and indicate
what - and his supporters have In
mind in tho way Of legislation in the
next Congress.
Charges Price Control
Tho one great issue now confront
ing the American people. he believes
to be the demolition OF the 'small
but powerful groups which have ac-
qusred q monopoly Of power in every
branch OF industry"
Each group he charged, dictates
Evening star., 1923-11-11

hrices in its own field-in coA, iron,
pil. lumber. sugar. meats. clothing.
IN short, in mining, manufacturing.
transportation and all important
Business enterprises in the country.
Through grain exchanges, elevator
combinations and packer combina-
ions, markets are manipulated and
prices fixed on all products Of the
farm.
Monopoly is absolute master Of
every product necessary to feed,
cIothe. warm and shelter tho human
body"
Coal Monopoly Alleged.
One Of these alleged monopolies,
according to La Toilette, controls the
Anthracite coal industry.
The one outstanding fact in the
monopoly Of anthracite" he said,
"Eas been the control Of the in
duSstry by seven railroad corporations,
which. in turn, are controlled by
New York banking houses, domin-
atSd by ]. P. Morgan & Co. and the
National City Bank. The seven rail-
rokds which control the anthracite
nfustry are the Reading; the Della
wAre, Lackawanna and Western. the
L9saigh Valley. the Erie. the Della
we're and Hudson. the Pennsylvania
ami the New York, Ontario and
Western
Senator La Toilette declared. in
effect, that there is law enough to
break up this monopoly, which Is
exercised indirectly, he said, but that
the law has never been enforced.
Hits Lumber shortaxe.
There is a lumber MONOPOLY. omar
ating through eleven regional as
sociations, according to Senator In
Toilette. who declared that its high
prices forced the housing famine Of
1919 and 1920. Basic food products
are controlled by q packers monop-
oily and sugar by another monopoiv.
he asserted.
In addition to the attacks which
will be made upon alleged monopolies
in the next Congress by the La Fol-
lette group-attacks which will be
made in harness with demands that
President Coolidge and the Depart
ment of Justice break them up, the
Wisconsin senator and his followers
will seek to prevent the Interstate
Commerce Commission from making
valuation Of railroads on the basis
of their reproduction cost
Evening star., 1923-11-11
Business Mars Relics.

England Has inherited the creates
monuments of prehistoric ages tha;
are known. One Of them, Stone
henge, has been wantonly spoiled,
is maintained by some, because al
immense aerodrome shed has beel
erected nearby. Now, Avebury an,
Silbury Hin are threatened by tn,
encroachment of modern buildings
Evening star., 1923-11-11
ny DREW PEARSON.

~ NGLISH manufacturers have
l. nothing to fear from Ameri-
can competition. American Ia
- Dor costs are so high that un-
less they are drastically cut. the
United States, within the next eight
cen months, will suffer a serious
three or four year economic depres-
sion.
This emphatic warning was given
me by Sir Arthur Balfour, who, as
president of the Associated British
Chambers of Commerce, manager of
Sheffield's foremost tool steel works
and frequent visitor to the United
States, has a keener insight into Brit
ish and American trade rvalrfes than
any other man in the United King
dom.
The man fra Sheffield" as he Is
popularity called in London. has a
warm spot in his heart for the United
States, even when he is fighting
American steel competition and
American tariffs. for when only nine
teen he began molding car wheels for
the New York Car and Wheel Works
and at twenty-one became manager
of that organization. Since then he
has kept up his contact with his
american cousins" during twenty
seven trips across the Atlantic, on
one of which he was asked to give
public testimony before the finance
committee Of the Senate.
Has Worker.' Coed WILL
Unlike some of his fellows among
British captains of industry. Sir Ar
thur has retained the confidence and
good will of his workers. His secret,
according to one of them, sis his pow
erful, dynamic personality and his
simplicity of manner. He can go
among us and talk to Jim or Harry
about crusib1es or melting as II ne
were one of us, and yet knowing more
than all put together. I would rather
work for Arthur Balfour for q few
hundred less year than for any
other man in England.
Although essentially business
man. Sir Arthur gives unstintingly
of. his time to his government. to ms
c,tv and to his associates In graft
tud. for his services to Belgian ref
ugees, the city of Liege has named
the avenue from the Commune TO
the war memorial, Avenue Chevalier
Arthur BaIfour," and when he re-
ceived me he had already given most
Of the day to Japanese earthquake
relief and to a meeting of colonial
experts in preparation for the inn
,opPorence-
America and England have emerged
from the war the two greatest IN
dustrial nations in the world. Which
of the two is going to capture the
world markets? That was the ques-
ton I asked Sir Arthur Balfour as
he sat at his desk in his ofdce at
the British Chamber Of Commerce,
and his prompt answer showed that
it was a question to which he had
given some thought.
No Fear Of Competition.
1--WE have nothing to fear from
American competition except in GER
tain specialized lines such as auto
mobiles. Your cost Of production is
too high. You have too many lux
uries and You pay your labor as much
per day as we do per week"
Evening star., 1923-11-11

presidential nomination. 1t is presumed he
will claim California as his state. Born in
Georgia, moving to Tennessee, then to New
York and on to California, he has a wide
range of states to claim him as "favorite
son."
The republican leaders of influential
weight in the party councils still have their
stacks of red chips on President Coolidge
The threatened or impending candidates. of
Senator Johnson, Gov. Pinchot or Lowden
do not dismay them.
Forecasting the nomination of President
Coolidge, many of the leaders are talking
about candidates for second place. Senator
Capper Of Kansas is frequently mentioned
He will receive the "favorite son" vote for
first place, and if President Coolidge were
out of the running he would give the field
a tight race for the presidential nomination,
it is thought.
X ~
Senator Watson of Indiana, it is said,
would have a look-in for second place on the
ticket if he showed up at the convention
with his state delegation solidly back of him.
But the republican party in Indiana is in one
grand old factional fight, a marvel to behold,
and which is prematurely aging the leaders.
1t is noted that Tom Taggart of French Lick
is wearing beatifc smile as he contemplates
the plight of the republicans in the Hoosier
state.
X
Senator Lodge said the other day that
the New England states would form bloc
in support of President Coolidge for the
nomination. Out west they will make wry
faces at the suggestion of New England
solidifying for the President People of the
east can hardly conceive the amount of jeal-
ousy there is in the west over the ascendancy
of New England in Congress and the govern
ment, unreasonable though it may be. The
"green-eyed monster" is fairly raging there.
Which consideration is causing many of
the leaders to think that the vice presidential
nomination will, of necessity, be given to the
middle or the far west.
Evening star., 1923-11-11
THE PASSING SHOW in POLITICS

The democratic political leaders are pay
ing increasing attention to Senator Copeland
of New York as a presidential possibility.
The senator happily is not up as target to
be shot at by the friends of the other candi-
dates, for as soon as they start to bend the
bow, he says, they are shooting at the wrong
fellow; he is not candidate; he is for Gov.
Smith for the presidency.
But none of the real powers-that-be in
the democratic party really believe Gov.
Smith is possible, so when his name is finally
dropped in the balloting, or Boss Murphy
withdraws it, it is to be expected that eyes
would naturally turn on Senator Copeland,
who will be one Of the delegates-at-large to
the convention.
Boss Murphy is at French Lick, hobnob-
bing with his old crony, Tom Taggart. The
failure of Gov. Smith to carry his assembly
no doubt will be brought up, and steno-
graphic report of their conversation on al
ternates would be highly interesting, prob
ably disclosing the name of Senator Cope
land.
The thought occurs, however, would Boss
Murphy's feud with Mr.. Hearst work to SEN
ator Copeland's disadvantage with the Tam
many leader, the senator being friend and
political protege of Mr.. Hearst? The hard
boiled democrats in New York would guess
in the negative, taking the ground that Mr..
Murphy would not let little thing such as
a personal feud stand in the way of the pos
sibility of getting New York the presidency.
Mr.. Murphy has been so accustomed in
the passing years to be described by the edi-
tor as having horns and hoofs one time and
wearing a halo the next that he probably
hardly knows which is his rightful char
acter.
The nomination of Senator Copeland, the
politicians say, might cause Mr.. Murphy to
recall his accommodation of Mr.. Hearst
from the democratic party and take him into
the fold a prodigal SON returning-once
more.
Evening star., 1923-11-11

" NGLISH manufacturers have
l. nothing to fear from Ameri-
can competition. American Ia
- Dor costs are SO high that un-
Evening star., 1923-11-11
No Fear Of Competition.

1--WE have nothing to fear from
American competition except in Ger
tain specialized lines such as auto
mobiles. Your cost Of production Is
too high. You have too many lux
uries and you pay your labor - much
per day as we do per week"
Evening star., 1923-11-11

Continued on Third Paxe.)