The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1924-01-21
HOLDS GIVING
STATES MONEY
BAD PRECEDENT
Fearful for Increase of Inef-
ficiency of Both State,
Federal Governments
DOOMS DEFICIT BILLS
Says Departments Must Keep
Expenditures Within Ap-
preparation Limits

Washington, Jan. 21.-President
Coolidge added two new planks to
the administrators platform of
governmental economy today in an
address at the semi-annual meeting
Of federal executive officers COM
prising the business organization Of
the government. He will permit no
expansion hereafter of the system of
federal subsidies to state govern
ments and will countenancc no in
curing Of obligations by federal
agencies in excess of their annual
appropriations except in extreme cir
cumstances.
The president, who with Director
Lord of the budget bureau, reviewed
the administrations management oil
the governments affairs since the
meeting last June touched only light
ly on the subject Of tax reduction
pointing merely to the relationshi p
existing between economy in federal
expenditures and the resultant do
crease in revenue required.
He told the thousand or more Of
ficials present that to increase the
tax burden was to disregard the gel,
eral welfare and held up tax reduc-
tion as the means of enlarging "the
reward of everyone who tolls"
No Deviation, He Says
There can be no deviation from
the economy program, Mr.. Coolidge
asserted, and he called on all spend
Ing agencies of the government to
increase their efficiency and curb
the outgo at every run.
"The budget has been a success"
Mr.. Coolidge continued. "You have
demonstrated that there can be and
is business organization of the
government. With the easing of CON
ditions the time is at hand when we
shall decide whether business ad-
ministration is to continue or whe-
ther our government is to lapse into
the old unbusinesslike wasteful eX-
travagance. As for me I am for econ
omy. There is scarcely an economic
i'll anywhere in our country that
cannot be traced directly or indirect
ly to high taxes. To increase that
burden is to disregard the general
welfare. Through constructive econ
omy to decrease taxes is to reward
everyone who tolls.
II say to you frankly that except
where specifically authorized by law
Will not countenance the incurring
of obligations in excess Of these ap-
preparations"
Against Deficit Bills
III am equally frank in saying to
you that l do not look with favor
upon the practice of asking for ad-
ditional funds for the year in pro-
grcss. These latter requests common
~ known as supplemental estimates
may be justified occasionally to
meet real emergencies or contingen-
cics arising after the budget has
been sent to Congress or to meet
obligations authorized by law. 1t is
only in cases such as these that the
chief executive will favorably con-
sider the transmission to Congress
Of supplemental estimates.
I'VE are all the servants of the
people of this nation. When Con-
gress, representing the people, have
appropriated funds to carry on the
business Of government we must CON
fine our operations within the limit
Of these funds. We have neither the
authority nor the right to incur OBJ
legations beyond this limit. On the
other hand our plain duty is to make
every possible effort to effect some
savings from these funds"
Curbing State Subsidies
II take this occasion to state that /
have given much thought to the
question of federal subsidies to state
governments. The federal appropri-
ations for such subsidies cover a
wide field. They afford ample pre-
cedcnt for unlimited expansion. ]
say to you, however, that the finan
cial program of the executive does
not contemplate expansion of theso
subsidies. My policy in this matter
is not predicated alone on the drain
which these subsidies make on the
national treasury. This of itself is
sufficient cause for concern. But
am fearful that this broadening Of
the field of government activities i.
detrimental both the federal govern
ment and state governments. Eff
cheney Of federal operations is i'm
paired as their scope is unuuly er.
larged. Efficiency of the state &c,
ernlhents is impaired as they relin
qulsh and turn over to the federal
government responsibilities which
are rightfully theirs"
Mr.. Coolidge asserted-and Gen.
Lord amplified the statement-that
for the first time since the "business
organization Of the government" was
formed by President Harding it was
able to meet'with no deficit indicated
fOr fbo 1yoov