Evening star., 1925-12-09
Uontinued from First PaGe.)

~ to the fact by the rapid reduction Of
the public debt already accomplished
the country is saved annually interest
more than $3.50. 900 900.
During the fiscal year ended June
so. 1925. the gross public debt was re.
duced s734.6l9. .10l:59.' he points out
This was brought about through %
retirementS required to he charged
against ordinary receipts. in amount
SAG6. 3S.1l3S3: t2) reduction of S17,-
575,14 As in the general fund balance.
and f3l the application of the entire
surplus of $3.50. 505. 1888. The debt
was at it's peak on August 81, 1913.
when the gross amount outstanding
was S26 $50. .701 .64S.0I. The gross
amount out sta anding on June 30, 1928.
was $40, 1913. $500. The reduction
accordncly has been 1850. .507 100 II i,
and the annual saving in interest
amounts to more than $3.50 600 900.
Certain fixed debt charges for debt
retirement are included in the regular
budget of the Government. This pol
icy. which has become firmly eStab
lished and which provides for an or
derly retirement Of the public debt .
was inaucurued by the Congress in
esta hlishinG the cumulative sinking
fund and in directing that certain mis-
cellaneouS sources of revenue. fnClud
ing the repayment of loans to foreign
governments made under authority Of
the Liberty bond acts should be ap.
piled to debt redemption. During the
fikcal wear 1925 debt amounting to
1906 sos 400 was retired through the
cumulative sinking fund. Other fixed
debt charges amounted tn S1s0.229 ia
Interest payments during 1928 ac-
EreCated 1881 sos $50 So. as compared
to $40. 500 .912.92 expended in 1924 nd
$50 000. 900 estimated to be expended
during 1926. For 1927 estimated ex
penditures are S795,0o0.000.'
Tax Reduction Discussed.
Taking up the matter of tax reduc
ton. the President says:
The outlook for 1926 and 1927
shows clearly that the united effort of
the executive and the legislative
bra inches of the Government for econ
omv in Federal expenditure is hearing
further fruit. In the last four fiscal
wears there have been two substa ntial
reductions in taxes. We have restored
to the people part Of the moneys
which we required of them to fnanc
the World War. We are now in tina,
favora bic position of making further
restoration. The budget and account
ing act Contemplates that under the
fortunate conditions in which we now
find ourselves the Chief Executive will
make recommends ton to the Congress
as To the disposition Of the estimated
surplus of revenue. therefore recon-.
mend to the Congress that there be
further reduction in taxes. The salts
faction Of the Chief Executive in hav-
ing opportunity to make such 4 recon-
menda ton. Il know. is shared by the
Congress. whose cooperation with the
Chief Executive in the conservation
Of public funds has made such reduc-
tton in taxes possible.
The ways and means committee
Of the House of Representatives has
been informed of our prospective sur
plus for 1927. That committee has
prepared taN-reduCtion measure.
While this measure somewhat exceeds
my judgment in amount and In eX
enptions. vet with continuing pres
sure for economy in the Federal serv.
ice and the stimulation to business
which will result from tax reduction
perhaps we can make further retmc-
tion in taxes of about the sum total
of our prospective surplus for 1927
without jeopardizin- the balancing of
our annual budget. Such reduction.
however. should carry an obligation
not to embark upon new projects in
volving large annual expenditure il
we are to safeguard the integrity of
our budget
The fruits OF our labors are re-
fected in the coming reduction
measure. 1t reflects the results OF
the efforts of t,le servants of the
people and of their Representative in
behalf of the people. There have been
no partisan politics in eXpedtinG its
preparation. I hope this same condi-
tion will prevail in the consideration
OF the mea sure.
The estimates of appropria tions for
the fiscal year 1927 compared with the
appropriations for 1926 show the ap.
propriations for the Navy Department
increased by about 500. 900 900 over
those for 1925. aand the appropria-
tions for the War Department in
Guiding the Panama Canal reduced
by about 81 900, 600.
The estimated aprropria, ions for
the legislative bra nch OF the Govern.
ment-the Senate and Housa--are in
creas sed by almost 81 500 900 due to
the fact that the salaries Of Senators
and Representatives have been in.
crea sed this year from $500 to
$4,000 year.
Reduces White House Fund,
The President sets an example to
the departments and Congress BY
recommending reduction nf approx
inately $4,000 for the Executive
ONCE
The estimated appropria tions for
the Shipping Board and Emergency
Fleet Corporation are fixed at S14-
19S.oI4. reduction of $4,000 900 from
the appropriations for the current fs-
cal year. The Veterans Bureau. on
the other hand. will receive about
$50 900 900 more during the fiscal year
1927 than in the present year il the
estimates are adopted.
Taken by and large. however. the
estimates of appropriations for the
various executive departments and in
dependent agencies vary little from
the appropriations made in the pres
ent fiscal year. The President says
with regard to them:
"These estimates reflect the con-
tinuing pressure for economy in Fed.
eral expenditure. We have about
reached the time when the legitimate
business of government cannot be
carried on at a less expenditure than
that which it now requires. With re-
gard to our legitimate business, the
operating costs have been reduced to
nearly minimum. The normal eX-
pansion of the Government in keeping
pace with A growing Nation will in
volve added expenditure from year To
wear. The effort for economy must
continue. So far as f lies within the
power of the Chief Executive it will
continue"
Air Service Estimates. -.
The President shows that. including
all items. the Government proposes to
appropriate for the Air Service dur
ing the hscal year 1927 a total of
S76. 900 900 He says:
For the Air Services. the estimates
carry a total of s42 ,447 900. being s16,
793, 900 for the Army. So .391 900 for
the Navy. s2,75o,0O0 for the Air Mail