Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1924-12-04
COOLIDGE REPORTS
S!67 1874. 4B9 SURPLUS
AND ASKS ECONOMY
Continues from Page y


mated there will be a sufficient
amount in the fund on January l
1926, to meet the demands of the
3 act. Should the number of applica
j tons increase beyond what present
q experience indicates as probable
4 there will be ample time to submit;
d supplemental estimate for the ad
. ditional amount necessary before
chat date.
For federal aid to states the
estimates provide in excess of $109,
. 100000. These subsidies are pre-
scribed by law. l am convinced
that the broadening of this field OF
activity is detrimental both to fed
eral and state governments. Eff
ficiency of federal operations is inn
paired as their scope is unduly en-
larged. Efficiency Of state govern
ments is impaired as they relinquish
and turn over to the federal gov
eminent responsibilities which are
rightfully theirs. [ am opposed to
6ny expansion of these subsidies
My conviction is they can be cur
tailed with benefit to both the fed
era1 and state governments.
"For reclamation purposes I am
recommending $9,777,257 for 1926.
II is highly desirable that the con-
gress, as a basis for this and other
future reclamation expenditures,
enact the legislation embodying
Few reclamation policies proposed
in H. r. 9611, Sixty-eighth congress,
Iirst session.
Debt Reduced $1,098,894,375
"The gross public debt was re-
4 duced $109S, S94,375 during the fiscal
year ended June 80, 1924, and TODD
q at $21. $3.50 on the latter date,
This reduction was accomplished
through Cd the application of the
sinking fund and other public debt
requirements required to be made
4 from ordinary receipts, agSregatlng
$457, 999,750; CD a reduction in the
I general fund balance of $135, 527,-
639; and CD the use Of the entire
surplus of $505, 1885, 1885,. The annual
interest charges on the debt repre-
scented by this reduction are e1uiVa-
lent to over $45, 100000.
"The total reduction in the debt
since the high point Of $26, 594, 0OO,-
600 on August 81, 1919, amounted
to $5,343, 0O0,00 at the close Of the
last fiscal year. This total reduc-
ton has effected a saving in inter
est amounting to approximately
1925, 900, 900 annually, a saving which
EQUALS nearly one third of the total
annual pre-war expenditures Of the
government.
"The fixed-debt charges are in
Guided in the regular budget of the
government under a definite plan
worked out soon after the close OF
I,Ic @nt I~0T O
of the public debt, and must be met
before the budget can balance. The
most important Of these fiXed-debt
charges is the cumulative sinking
fund provided in the Victory Liberty
loan act. Retirements through this
fund during the past fiscal year
we're about $296,000 600. The next
items in size among the fiXed-debt
charges are the retirements of Sc
curities received from foreign gov
ernments under debt settlements
and the purchases and retrements
of securities from foreign repay
ments. These continuing reductions
OF the public debt have a very ma
terial effect in maintaining high
etrices for Liberty bonds. They per-
nit the issuance of new government
securities for temporary and for re-
binding purposes at low interest
ates, with consequent further econ
INV in government expenditures.
Interest paid in the fiscal year 1924
mounted to 1910, 100000. 1t is es-
MATED that this item will be $685.
90, 600 in 1925 and $S30,000000 in
g26. This saving of $4,000, 900
h. two years is the result of the
Efluction in the amount of the debt
ind decrease in, the average rate
4 interest paid. The sinking fund
a part of the contract between
he United States and the holder of
he United States obligation, and,
herefore, cannot in good faith be
hanged. The continual steady eff
ect of these debt-reducing factors
) to cut down the largest single
fem of government expenditure,
51d permit further reductions in the
BURDEN Of taxation.
Ind0rses Building Program
"During the last session of con
Hess a bill was introduced authoriz-
hg a yearly appropriation of not
Hceeding $10,000,000 for a progress
I've building program in the Dis,
tict of Columbia. This bill has my
bend it's enactment by congress.
81 have recently appointed Il com
1isson to investigate agricultural
,gislation or otherwise, should be
AIKEN to place agriculture on a
asis of economic equality with 9th
industries. The findings and rec
lamentations of the commission are
Dr the use of the congress. [ men
.xon this commission here for the
Sason that I will shortly submit
to the congress an estimate of ap
preparation to meet the expenses OF
the commission.
I'VE are now in the fourth year
OF our campaign for reduction In
the cost of government. Our aim is
to reduce the burden of taxes. In
this we have been successful. Fol
those things which we are now re
quired to do we are fast reducing
os'r expenditures to minimum con
sfstent with efficient service. We
have before us an estimated surplus
of $4,000, 900 for the current fiscal
year and 1878, 10000 for the next
fiscal year. Shall we embark upon
new projects involving expenditures
which will prevent the accumulation
of these expected SURPRISES, or shall
we continue the campaign for econ
envy? 1 am for economy. If we
continue the campaign for economy
we will rave the way for further
reduction in taxes. This reduction
cannot be effected Immediately. Be
fore it is undertaken we should
llfww more definitely by actual OPP
Grafton what our revenues will be
under our present tax law. b., the
knowledge of our revenue under the
existing law will avail us nothing il
we embark upon any new large eX
penditure program
COST OF GOVERNMENT FINED
AT S3,129, 519.Sl6 IN 1925
WASHINGTON. Dec. 1.-The cost
of running the federal government il
ficcol N-nn,, 1Nok NNnS fixed by