New Britain herald., 1924-12-02
Coolidge Explains
 Details Of Budget
(continued From First Page)

hAN AbNs tional defense includes $50,liS,o0o for the Army and Navy Reserves, National Guard, Citizens Military Camps and other civilian training activities.
 Increase for Navy.
 There is also included in the na- tional defense estimates s7,44i,O00 for increase of the Navy. This will provide for continuing work on the fleet submarines under construction and for beginning work on two of the four remaining fleet submarines authorized in the 1916 program. With regard to the Navy estimates. legislation is now pending which provides for additional vessels. in- cluding gurboats fo? use on the Yangtze river. Further estimates for increase in the Navy are de- pendent upon the enactment of this legislation. It will also be neces- sary to request of congress leglsla- tion increasing the authorized cost of the two airplane carriers now un- der construction. If this be granted 1t will require funds for the next fis- cal year not proved in the estimates contained in this budget.
 For rivers and harbors s56.2S7,- 500 Is recommended. In this is in- cluded $40,000.000 for maintenance and improvement of existing river and harbor works, s10,500,O00 for flood control on the Mississippi and Sacramento river, and $5,437,600 for the operation and maintenance of canals and the removal of wrecks and other Instructions. Of the s40,- 000,000 for maintenance and im- proyement of rivers and harbors, s21,973,915 Is for new work and $17.241,575 Is for maintenance. This will make possible material progress on the most important projects ap- proved by congress.
 Muscle Shoals
 Tt Is estimated that s6.54l,590 will be needed to complete Dam No. 2 at Muscle Shoals, Of this amount s3,501,20o will be required this year. This will be covered by supple mental estimate for 1925. The balance-s3.04O,390 is provided for in these estimates.
 There is included in these esti- mates s50,0O0,000 to be set aside in the adjusted service certificate fund established under the world war ad- justed compensation act of May 19, 1924. This is for the second pay ment to the fund to be made Janu- ary l, 1926. For the first payment due January l, 1925, s100.O00,O0O is included in the deficiency bill now under consideration by congress. The appplications from veterans so far have been below the estimated number which the records indicate as entitled to the benefits of the act. If the twoa appropriations recom- mended made. it is estimated there will be sufficient amount in the fund on January 1. 1926, to meet the demands of the act. Should the number of applications increase beyond what present experience in- dicates as probable, there will be ample time to submit a supple. mental estimate for the additiona amount necessary before that date. Federal Aid to States
 For federal aid to states the es, inmates provide in excess of $109,. COOL These subsidies are pre- scribed by law, I am convinced that the broadening of this field of activity Is detrimental both to fed. eral and state governments. Eff. ciency of federal operations is i'm. paired as their scope is unduly en. larged. Efficiency of state govern. ment is impaired as they rellnquish and turn over to the federal govern ment responsibilities which are righttully theirs. l am opposed to any expansion of these subsidies My conviction is they can be cur tailed with benefit to both the fed cral and state governments.
 For reclamation purposes I am recommending $9.777257 for 1926. It is highly desirable that the con gress, as basis for this and other future reclamation expenditures, enact the legislation embodying new reclamation policies proposed in H. R. 9611, Sixty-eighth congress, | first session,
 Public Debt
 "The gross public debt was re- duced S1,09S,S94,375 during the fiscal year ended June 30, 1924. and stood at $21,25o.S12,9S9 on the lat ter date This reduction was ac- complished through CD the applica- tion of the sinking fund and other public debt requirements required 10 be made from ordinary receipts, ! aggregating s457,999,75O; CD a re- duction in the general fund balance of S1S5,527,639; and (3) the use of the entire surplus Of $505,366,9S6, The annual interest charges on the debt represented by this reduction are equivalent to over $45,O0O, 900.
 The total reduction in the debt since the high point of s26,594,00 | co 0on August 3l, 1919, amounted to s5.SI3,000,o00 at the close of the last fiscal year. This total reduc- tion has effected a saving in interest amounting 10 approximately $225,- 000,000 annually, a saving which equals nearly one-third of the total annual pre-war expenditures of the government.
 The fXed-deht charges are in- cluded in the regular budget of the government under a 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 r,,nst i'm nortapt of yhaaa Axad