Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1925-12-09

rowed represented but 81 cents. AS
the value of our dollar increases,
due to the falling prices of CONF
modities, the burden of our debt in
creases. 1t has now risen to 63 II
cents. The taxpayer will be required
to produce nearly twice the amount
of commodities to pay his debt If
the dollar returns to the 1918 value.
The more we pay while prices are
high, the easier it will be.
Defiation of government after a
war period is slower than dehatlon
of business, where curtailment is
either prompt and effective or dis
aster follows. There is room for
further economy in the cost of the
Federal Government, but compare
son of current expenditures with
pre-war expenditures is not unfavor-
able to the efficiency with which
Government business is now being
done. The expenditures of 1916, the
last pre-war year, were $742, OOO,O00,
and in 1925 over $3,50O,O00,OOo, OR
nearly five times as great. If we
subtract expenditures for debt re-
tirements and interest. veterans re-
lief. increase of pensions, and other
SpeCldl Oulldy VI
trust investments, and like charges,
we find that the general eXpendi-
lures of the Government in l92o
were slightly more than twice as
large as in 1916.
AS prices in 1926 were approx
mately 40 per cent higher than in
1916, the cost of the same Govern
ment must also have increased. But
the Government is not the same. 1t
is more expensive to collect the
much greater revenue necessary and
to administer our great debt. we
have given enlarged and improved
services to agriculture and COM
merce. Above all, America has
grown in population and wealth
Government expenditures must al
ways share in this growth. Taking
into account the factors l have men,
toned, / believe that present Fed
eral expenses are not far out or line
with pre-war expenseA We have
nearly accomplished the deflation.
This does not mean that further
economies will not come. AS we
reduce our debt our interest charges
decline. There are many details yet
to correct. The real improvement,
however, must come not from addi-
tional curtailment of expenses, but
by a more intelligent, more ordered
spending. Our economy must be
constructive. While we should avoid
as far as possible increases in per-
manent current expenditures. often
times a capital outlay like internal
improvements will result in actual
constructive saving. That is econ
omy in it's best sense. 1t is an avoid
ance of waste that there may be the
means for an outlay today which
will bring larger returns tomorrow
We should constantly engage In sci
entific studies of our future require
ments and adopt an orderly program
for their service. Economy is the
method by which we prepare today
to afford the Improvements of to-
morrow.
Budget
A mere policy of economy with
out any instrumentalities for putting
it into operation would be very in
effective. The Congress has wisely
set up the Bureau Of the Budget to
investigate and inform the President
what recommendations he ought to
make for current appropriations
This gives centralized authority
where a general and comprehensive
understanding can be reached of the
sources of income and the most
equitable distribution of expendi-
lures. How well it has worked Is
indicated by the fact that the de.
partmental estimates for 1929, before
the budget law, were S4.06S, cocoon
while the Budget estimates for 1877
are S3,156.000,000 This latter figure
shows the reductions in depart.
mental estimates for the coming
year made possible by the operation
of the Budget system that the Con,
gress has provided.
But 1t is evidently not enough tC
have care in making appropriation:
without any restraint upon expendi.
ture. The Congress has provided
that check by establishing the office
of Comptroller General.
The purpose of maintaining the
Budget Director and the Comptrol4
Ter General is to secure economy ant
efficiency in Government expendi
ture. No better method has beer
devised for the accomplishment o.
that end. These offices can not bt
administered in all the various de.
tails without making some error:
both of fact and of judgment. Bu
the important consideration remain,
that these are the instrumentalitie:
of the Congress and that no othel
plan has ever been adopted which
was so successful in promoting econ
omy and efficiency. The Congress.
has absolute authority over the ap
preparations and is free to exercise
it's judgment, as the evidence ma,
warrant, in increasing or decreasinf
budget recommendations. But i
ought to resist every effort to weak
en- or break down this most bene
fetal system of supervising appro
priations and expenditures. With
out it all the claim of economy
would be a mere pretense.
Taxation
The purpose of reducing expendi
lures is to secure a reduction II
taxes. That purpose is about t.
be realized With commendablt
promptness the Ways and Mean
Committee of the House has under
taken in advance of the meeting o
the Congress to frame a revenue act
AS the bill has proceeded through
the committee it has taken on /;
non-partisan character, and boil
Republicans and Democrats have
joined in a measure which embodie
many sound principles of tax re
form. The bill will correct substan
TALLY the economic defects injected
into the revenue act of 1924, as wei
as many which have remained a.
wartime legacies. In it's presen
form it should provide sufficient rev
enue for the Government.
The excessive surtaxes have beer
reduced, estate tax rates are restored
to more reasonable figures, with ev
cry prospect of Withdrawing from
the field when the States have hat