Evening star. [volume] (Washington, D.C.) 1854-1972, 1925-12-10
Nearing the End of ECONOMY
I'M his mesa ge to Cong

LII Ills message 10 AOuSIeSS dCCOIll-
panying the estimates for the conduct
Of the Government for the next fiscal
year, which total S3,S96, 207 1921, Presi-
dent Coolidge says that with regard
eminent the operating costs have
been reduced to nearly a minimum.
This signifies that the economy pro-
gram" has been carried to almost its
conclusion. The President expects
that the normal expansion Of the bust
ness of the Government, in keeping
pace with a growing nation, will in
volve added expenditure from year to
year.
The economies that have been prac-
ticed during the past few years are
mainly incidental to the reduction of
Government expenses from the ex-
traordinary requirements due to the
war. Practically every branch Of the
departmental service is increased.
The Army and Navy were expanded
enormously. The war entailed obliga-
tons in every direction. 1t would now
appear that. save in the point Of pen
sions, annuities and other allowances
growing out of the Governments obi
cations to participants iE the war
and their survivors, these wartime ne
cessities have been almost liquidated
and the time is near at hand when
the normal increase incident to the
steady growth of the Nation will over
take the reductions.
In this connection it is interesting
to note from an analysis of the bud
get submitted yesterday the sources
jects of expenditure. In terms of
fractions of a single unit dollar of
revenue, 1916 cents come from in
come and profits taxes; 22.S5 from
miscellaneous internal revenue; 14.43
from customs, and the remaining
small fraction of the dollar from mis-
cellaneous sources. OF each single
dollar expended by the Government
the largest fraction, 22.75 cents, goes
to pay interest on the public debt
1916 goes to debt retirement; 1856
cents are required to meet military
pensions, retirement pay, World War
annuities and life insurance claims,
and 1852 cents are spent on national
defense. On the constructive side of
Government administration only small
fractions are spent: 335 cents for the
general functions of Government; Sc
cents for public works; 1873 cents for
the promotion, regulation and opera
ton Of marine transportation; IA
cents for miscellaneous civil func-
tons. Thus 1851 cents of each dollar
go for debt-funding and interest
and 32.S7 go for national defense and
the consequences and obligations of
war and defense.
If the policy of comparatively
speedy debt retirement is followed, as
the President and the Secretary of
the Treasury urge, the percentage of
the Governments dollar spent for
liquidation will be steadily decreased,
releasing a larger fraction of the dol
lar for constructive works and for
care Of the expanding Federal admin
istration.
The Presidents economy program
has resulted in a balanced budget
with steadily decreasing tax burden
on the people. While in some par
ticulars, phases and branches of the
public service have suffered from this
series Of curtailments, no essential
function of the Government has been
impaired. The people have been re-
lieved very greatly of onerous taxes
and will be further relieved as the
present program Of tax revision is
carried into effect. The country may
feel assured that President Coolidge
will not give too soon the signal for
increases rather than decreases in ap-
preparations. or, so far as his powers
go. permit the needless and unwise
expansion of the Federal budget in
the reaction from economy.
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