Evening star., 1925-06-23
TEXT OF PRESIDENTS SPEECH
BEFORE FEDERAL BUREAU HEADS
Taxes Still Burdensone, Constructive Budget Econ
ony Only Hope of Further Cuts, AL TASTE
Must Stop, Coolidge Declares.

pie. To conduct the business of Gov
ernment so as to bring the greatest
possible benefit to the people Is to
honor our constitutional obligations.
Constructive economy in the business
of Government Is for the benefit Of
the people. We are fast reaching the
TIM when we cannot look forward to
appreciable reduction In the legitimate
cost of Government. This Nation Is
growing. and in the normal course Of
events we must face a gradual ex-
pansion of its legitimate business, but
increasing resources and numbers will
leave the burden on each Of us dimin.
ished. Even greater Watchfulness,
greater care over our expenditures,
must be exercised successfully to cop-
tinue this campaign. The task is be-
coming more difficult, but the more
difficult the task the greater Is the
reward of success. In this great busi-
ness of the Government we are un-
doubtedly continuing activities which
are no longer essential or productive.
The undertaking Of new projects or
lines of effort made essential by
changing conditions should be marked
by the wedding out Of those no longer
essential. l refer, of course, to those
functions which are within your ad-
ministrative discretion.
Government Has Trespassed.
Unfortunately the Federal Govern
ment has strayed far afield from its
legitimate business. 1t has trespassed
upon fields where there should be no
trespasS. If we could confine our
Federal expenditures to the legitimate
obligations and functions Of the Fed
eral Government a material reduc-
ton would be apparent. But far more
important than this would be its effect
upon the fabric of our constitutional
form Of government, which tends to
be gradually weakened and under
mined by this encroachment. The
cure for this is not in our hands.
1t lies with the people. 1t will come
when they realize the necessity of
State assumption of State response
bility. 1t will come when they realize
that the laws under which the Federal
Government hands out contributions
to the States is placing upon them a
double burden of taXation-Federal
taxation in the first instance to raise
the moneys which the Government do
mates to the States, and State taxation
In the second instance to meet the
extravagances of State expenditures
which are tempted by the Federal
donations.
This campaign for economy in Fed
eral expenditures has added greatly to
the efficiency of the Federal service.
Constructive economy necessarily
means efficiency 1t is constructive
economy which we have been preach
ing and practiclng. You have your
appropriations for the fiscal year
which will commence within a few
days. You have already prepared
your expenditure programs, and
trust that you have not overlooked the
setting up OF reserve to meet unan.
ticipated or emergent requirements.
Remember always that every dollar
you save will add to the prospective
surplus. 1t is my desire that the
total Of our expenditures for the com
ing year. excluding alone the postal
service, be kept within $3,375 900. 900.
This is $125, 100000 less than our es-
timated comparable expenditures for
this year. Keep before you always
the fact that we are not practicipg
economy for economy's sake. but for
the sole purpose Of reducing the tax
burden Of the people. Keep in mind
how heroically they bore the enor-
nous burden of war taxes. Keep in
mind the sacrifices which this re-
quired.
Must Give Relief.
During the period from April 6.
1917, to June so, 1920, the people paid
In extraordinary war taxes alone more
than 10,500, ,000, 900. This was nearly
one-third of our total extraordinary
war expenditures for the same period
which amounted to approximately
s33 500, 100000. And they loaned TO
the Government the remaining $685.
600, 100000. This was only the COM
mencement of their sacrifices. The
burden of war taxes. though ma
terially lessened in these last four
years, is still with the people. Let us
them every relief possible.
Greater ultimate economy in Fed,
eral expenditures can sometimes be
attained by larger annual outlays on
some Of our existing projects. In fact,
greater ultimate economy can in some
instances be attained by undertaking
new projects. I do not advocate the
Withholding of additional outlays on
projects essential to the best interests
Of the Government. But our present
objective is the relief Of the taxpayers
Of today. and any proposed increase
of annual outlay on existing projects
or any undertaking of new projects
should be scrutinized with this OBJ
jective in mind, and every doubt
should be resolved In favor of the tax
payer of today who is carrying the
burden of war taxes.
Best Efforts Needed.
For the next fiscal year the fixed
public debt charges will be about ST.
315. 100000. Our other fixed charges,
the amounts of which cannot be de.
creased by administrative action, will
more than $500 .OOO. 900.
This shows that Of our total estimated
expenditures for 1926, $3,375 ,OOO, 900,
only approximately 81 ,160 900 900, or
about one-third of the total, is in.
volved in the expenditures over which
we exercise administrative control. 1t
will require your best efforts to hold
the expenditures for next year within
the limitation which 1 have men
toned.
The estimates for the fiscal wear
1927 are our next consideration. 1t
will be my effort to hold these esti-
mates within total OF $3,08O 900, 900,
exclusive of the postal service. This
figure does not contemplate any en-
largement OF our expenditure pro-
gram for 1927 over what is estimated
for 1926. 1t contemplates a shrinkage
of this program. To accomplish the
objective which I have outlined for
1927 will require your fullest assist.
ance and cooperation. Scrutinize
carefully each item Of your estimates
before you submit them to the di.
rector of the Bureau Of the Budget.
We are waging a fight for the tax.
payers. We are nearing the time
when constructive economy in the
business of government will not find
a reflection in continuing lessenine
yearly outlays. But the necessity for
constructive economy in our opera
tions will ever be with us. It's en-
forcement Is our privilege and duty
because thereby we serve the peopIe