Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1925-06-23
Presidents Address
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elusive of money applied to reduc-
tion of the public debt and operation
of the postal service.
1t is his desire, he added, TO hoio
expenditures for the coming year, IN
Guiding the amount applied on dept
reduction but excluding the postal
service, within S3,S75,0 0O,Ooo' OF
s125, 100000. he said, less than esti-
mated comparable expenditures iof
this year. -
would attempt to hold estimates for
the fiscal year beginning July l, 1875,
tn S3.OSO,O 100000, exclusive OF the
postal service. No estimates swere
given of the amount needed for re-
ducing the debt and operating the
postal service.
The President told his. audience,
made up of cabinet officials. and de-
partmental executives, that they
must continue their efforts to de-
crease the cost of government. He
gave Congress credit for supporting
the budget, and declared that while
the tax. burden had been materially
lightened, it sis still with the peo-
pie"
Back of the 'tireless, persistent
and drastic campaign for construc-
tive economy in Federal expendi-
lures" declared Mr.. Coolidge, "has
been the relief of the people of this
nation from a great burden of taxa
ton. 1t has been successful. Taxes
have been reduced. The burden of
the people has been materially light
ened.
But the reduction has not yet
reached the point where taxes have
ceased to be burden. 1t is to the
reaching of this point that our eff
way has been prepared for further
tax reduction. This / will recon-
mend to the Congress in the next
budget message.
Economy in the cost of govern
ment is inseparable from reduction
in taxes. We can not have the lat
ter without the former. From some
sources the statement has been made
that this continuing drive for econ
omy in federal expenditures is hurt
ing business.
Il have been unable to determine
how reduction in taxes is injurious
to business. Each tax reduction has
been followed by revival of bus
mess. If there is one thing above all
others that will stimulate business it
is tax reduction. If the government
takes less, private business can have
more. If constructive economy in
federal expenditures can be assured
it will be a stimulation to enterprise
and investment"
Reviewing the four years opera
ton of the budget system. Mr.. Cool
idge asserted that annual expendi-
lures, which in 1921 totaled $5,116,-
100000, had been reduced by $2,081,-
100000, while $3,426, 000,0 900 had been
Topped off from the public debt
which then aggregated $23,977, 000,-
600. Interest paid in 1921, he said,
totalled $1,000,000,000 as against
$S70, 100000 this year.
"Our sound debt policy" the Pres
ident continued, has progressively
strengthened the credit of our treas
ury. Bonds which in 1921 were SELL
ing much below par are today SELL
ing well above. AS the price Of cur
securities goes up, the interest rate
which we must pay on new f1otations
declines.
This month the Treasury offered
"a percent one-year certificate on
which the subscriptions were nearly
four times the amount of the Offer
ing. OF $130,000,000 of decrease in
interest payments between 1921 and
1925, part Of the saving came be-
cause there are less bonds outstand-
ing upon which interest must be
paid. Over thirty million of this
decrease is due to the lower interest
rates paid on our securities. These
lower rates are the result of improv-
ed credit, secured by the orderly
management of our fiscal affairs.
Thirty million dollars a year is
good pay for a sound policy. It
shows how orderly management goes
hand in hand with economy"
Declaring that 1--WE are fast ap-
preaching the time when we cannot
look forward to appreciate reduc-
ton in the legitimate cost of gov
eminent" Mr.. Coolidge continued:
"This nation is growing, and in
the normal course of events we must
face gradual expansion Of it's legit-
innate business, but increasing re-
sources and numbers will leave the
burden on each of us diminished.
Even greater watchfulness, greater
care over our expenditures, must be
exercised successfully to continue
this campaign. The task is becom-
ing more difficult, but the more diff
cult the task the greater is the re-
ward of success.
I'm this great business of the gov
eminent we are undoubtedly contin-
uing. activities which are no longer
essential or productive. The under
taking of new projects or lines of
effort made essential by changing
conditions should be marked by the
wedding out of those no longer es-
sentiaL refer, of course. to those
functions which are within your ad-
ministrative discretion.
Unfortunately the federal govern
ment has strayed far afield from its
legitimate business. 1t has trespass-
ed upon fields where there should be
no trespass. If we could confine our
federal expenditures to the legiti-
mate obligations and functions of
the federal government a material
reduction 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 weaken
ed and undermined by this encroach-
ment.
The cure for this is not in our