Evening star., 1924-12-02

those for departmental employees in
the District of Columbia.
For federal aid to States the esti-
mates provide in excess of $109,00O,-
900. These subsidies are prescribed
by law am convinced that the
broadening of this field of activity is
detrimental both to Federal and State
governments. Efficiency Of Federal
operations is impaired as their scope
is unduly enlarged. Efficiency OF State
governments is impaired as they re-
linquish and turn over to the Federal
Government responsibilities which
are rightfully theirs. / am opposed
to any expansion of these subsidies
My conviction is they can be cur
tailed with benefit to both the Fed
eral and State governments.
Reclamation Projects.
For reclamation purposes l am
recommending $s.777,257 for 1926
It is highly desirable that the Con-
gress, as a basis for this and other
future reclamation expenditures. en-
act the legislation embodying new
reclamation policies proposed in II. T..
sS11. Sixth-eighth Congress. first
session.
1.-The gross public debt was reduced
S1.0as,S94.375 during the fiscal year
ended June so. 1924, and stood at
S21,25o,S12, 1859 on the latter date.
This reduction was accomplished
through % the application of the
sinking fund and other public debt
requirements required to be made
from ordinary receipts. aggregating
$457.s99,750; (2) a reduction in the
general fund balance Of $135.527.63s.
and (3) the use Of the entire surplus
of $5O5,366,9S6. The annual interest
Ioh& %nI Nv
this reduction are equivalent to over
s45, 100000.
"The total reduction in the debt
since the high point of $26, $4,000, 900
on August 81. 1919. amounted to
$3.50, ,0eo, 900 at the close of the last
fiscal year. This total reduction has
effected a saving in interest amount
ing to approximately S225,ooO.0oo an
nually. a saving which equals nearly
one-third of the total annual pre-war
expenditures of the Government.
Fixed Debt Charges.
The fixed debt charges are in
cluded in the regular budget of the
Government under definite plan
worked out soon after the close Of
the war for the gradual retirement
Of the public debt, and must be met
before the budget can balance. The
Iobt vi tHtSt HStu oepl
charges Is the cumulative sinking
fund provided in the Victory Liberty
loan act. Retirements through this
fund during the past fiscal year were
about $996, 900. 900. The next items In
size among the fixed debt charges are
the retirementS of securities received
from foreign governments under debt
settlements and the purchases and re-
tlrements of securities from foreign
repayments.
These continuing reductions Of the
public debt have very material ef-
feet in maintaining high prices for
Liberty bonds. They permit the issu-
ance of new Government securities
for temporary and for refunding pur-
poses at low interest rates, with con-
sequent further economy in Govern
meut expenditures. Interest paid in
the fiscal year 1924 amounted to $780,
100000. IT is estimated that this item
WILL be 1866, 900 in 1925 and $780,
0t0, 900 in 1926. This saving of $l10,-
100000 in two years is the result of
the reduction in the amount of the
debt and decrease in the average rate
of interest paid. The sinking fund
is part of the contract between the
United States and the holder of the
United States obligation, and there
fore cannot in good faith be changed.
The continual steady effect of these
debt reducing factors is to cut down
the largest single item of Govern
ment expenditure and permit further
reductions in the burden of taxation.
Building Program for ID. G.
I'm my message transmitting the
budget for the fiscal year 1925 l rec
commended the enactment of legisla-
tion which would authorize a reason
able progressive building program to
meet the needs of the executive de-
partments and establishments of the
Government in the District of Column
bia. The situation is yearly becom-
ing more acute even with full utiliza-
tfon of all Government owned build
ings, including the temporary build
ings erected during the period of the
late emergency. We are now spend
ing something more than $4,000 per
year for rental OF buildings or parts
of buildings in the District of Column
bia. The present crowded condition
is detrimental to efficiency. The fire
hazard in the temporary buildings is
great An expenditure of $5,000,0oO
Annually for a period of years would
enable the present situation to be
gradually relieved. A larger yearly
expenditure would shorten the period
during which full relief could be at
tanned.
During the last session Of Con-
gress bill was introduced authoriz-