The Bozeman courier. (Bozeman, Mont.) 1919-1954, 1924-04-30

OF the administration. But reduction
IN taxation would not be possible
were 1T not for r~etrenchment in oov-
ernmental expenditures.
TO this most difficult of all tasI,s
the administration set itself detar
mlndly. Not only was provision made
by law for a budget system. but
President Harding took the words Of
the statute and made them a living
force by a supremacy efficient organi.
cation. He demanded of his depar+-
ment chiefs the most rigid economy.
he evoked a new spirit of efficiency.
lie not only required that requests for
appropriations should stand the
minutest inquiry, but after reduced
appropriations were granted he insist
ed upon spending less than the
amounts appropriated.
HE did not propose to diminish
government activities REQUIRED bv law
or demanded by the public need, but as
ne said, there was first the commh !
ment to efficiency and then commend.
able strife for economy He dissipat.
ed the notion that government depart.
ments must eXpend all their apprc-
prlatIons and that no available cas-
should go back to the treasury. Tn
the forwarding of this great reform,
President Harding supplied the driv.
ing force, and this alone entities him
to lasting honor.
Big Slash in Expenses
What was the result? The redue-
ton IN governmental expenditures
during the fiscal year ended June 80,
1922, as compared with the fiscal year
ended June so, 1921, was about 81
7OO,OO0,000. There was a surplus of
about $500, 10000 The current ex.
penses for the year were about $780,
100000 less than the departmental
estimates. These economies are be.
ing maintained and further restric-
lions in expenditures are being eff
fected.
I'm connection with this economic
ing, there has been a brilliant man.
agement of the government finances
by the secretary of the treasury.
When the republican administration
came into power the public debt
amounted to about $4,000, 600, 900. or
about ten times what it was at the
close of the Civil war and about 20
times the public debt at the end of
the Spanish war. Of this debt approx
imately $500, 600, 900 was short-dat-
ed debt maturing within two and one
half years. The larger part of this
debt he'd to be refunded, but to ac-
cOmplish the refunding in time of
peace of such an enormous amount
was a ~stupendous task. 1t was ac-
complished, however, without any dis
turbance to business.
I'm addition to the refunding opera
lions, the administration made sub
stantial reductions in the public debt.
1t has adopted the policy of includ-
ing in its ordinary budget certain
fixed debt charges, including the sink
inr funds IN addition to these re-
t%renchments the surplus receipts are
apple to debt reductions. The result
is tina BY March 7, 1924, there had
been ef ec.ed q reduction in the pub
lie debt Of about S2,269, 900, 900.
Credit Due Secretary Mellon
ct was this rigid economy in gov
ernmental expenditures and this wise
fiscal management which made it pos
sible for the secretary of the treasury
to propose a thorough-going scientific
plan of tax reduction which has met
countrywide approval. He proposed
a reduction which would carry bene-
to all the workers in the country.
1t would have effected a readjustment
not only fair in itself as a relief from
excessive war taxation, but so ar
ranged as to produce larger revenues
while at the same time inviting capital
to embark more freely in productive
enterprise, and thus stimulate our
trade and commerce.
"There is no doubt that the opposi-
ton to this plan and the delay in
providing this needed relief is re-
sponsible for holding back a move
ment which it is believed would have
already given to the country an in
creased prosperity. Certainly, the
responsibility for delay must rest
with those who oppose the plan and
not upon those who propose 1t.
"The republican administration pre-
pared the plan of tax reduction; the
republican president has urged it. The
of national economy, of debt