Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-01-31
FURTHER TAX CUTS
COOLIDGE
TELLS EXECUTIVES
Declares Greater Economy
Should Be Sought in Inter
est of Public.
SAVING OF S6O,OOO,OOO
EFFECTED DURING 1925
Gen. Lord, Disclosing Offers From
Private Business, Declares He
Is Willing to Resign.

Predicting that further tax reduc
ton would be possible within the
next few years provided the hone
ly, fundamental virtue OF Government
economy" continued u be practiced
President Coolidge last night virtual!
sang the praises Of this his favorit.
policy, as "a large contributing factor
To prosperity al home, ana to peace
Ieparation and restoration abroad,
Plain intimaiion vas given by thn
President and by Director Lord Of tn.
Bureau Of the Budget, who also al
dressed the tenth serniannual meet
ing of the business organization OF tn
! Government at Memorial Continental
Hall, that further cuts in Federal PEI
sonnel here in Washington may b.
expected
The Chief Executive, as IN the pas
called upon the heads OF his execuIiv.
departments and establishments =
continue saving with efficiency and :"
lay aside emergency funds" But h"
departed from the usual trend OF sUcL
former addresses to declare that gov
ernmeutal efforts IN economy and eff
cheney would be greatly underest!
mated if il he thought that they begin
and end with the saving OF money.
Aids TO Advancement.
Considered in their entirety" saia
The President, they play an inpoT
tant part in the wonderful America
experiment for the advancement o.
human welfare. 1t Is not only the
method by which we have built rail
roads. developed agriculture. created
commerce and established industry
not only the method by which we have
made nearly 1900 600 automobile
and put u telephone s.nd radio int
50 large q proportion OF our homes
but II IS also the method by which w
have founded schools, endowed hosp!
| tails ana erected places OF religious
worship. II = the material Sroulc
work or which the whole fabric of So
ciety rests. II has given to the ave.
age American 4 breadth OF outlook, 4
variety OF experience and richness
of life that IN former generations wa
entirely beyond the reach Of even III"
most powerful princes.
The President reviewed The eco
noirlic advancement OF the countr!
during nearly i've years operation O.
| the Bureau Il the Budget, sounded u
warning against the mounting It'd"
| Of expenditure and Indebtedness o.
municipal and State governments,
! and called attention TO the "larges
! single item in the business Of govern
ment"-the pay roll. This, he said
had been reduced IN Washington BY
! more than 5000 names-'an annua
saving OF SS h00 ,u0b-althOugh Whels
! persons are dropped from one depart
I Inent they are always taken care Of il.
| another wherever possible.
! Although referring 10 the posslbu
! !ty OF normal growth OF the Nation
! eventually bringing expansion III FED.
! eral business. the President said pas
experience had shown tax reduction
was followed by increased prosperity
/ IF we are moderate in our eXpendi-
lures" he said. the natural increase
! in profits ought within the next fev
years To furnish us again with q 81,
! plus revenue which will permit fur
! ther tax reduction"
Expenses Cut Two Billion.
| The President traced the cut in Co
! ernlnent expenses from the pre-budGt-
| year of 1921, to the present, durinl
which time he estimated Uncle Sam >
annual bill had been sliced by Sl.9l9.
900 900. with q figure of S3.6f9 600. .GQH
. the probable cost Of this fiscal yea
ending June 50, 1929.
Gen Lord. following the President
reviewed the Government practice o
economy ana SlHClenCy 1oI lne pdsl
with prospects for the future, and II
piled sharply to critics of the budget
system.
Statements that we have effected
few or no economies OF Importance
must fall with strange and mocking
sound upon the ears Of people in the
+ Federal service who have been under
=, the economy rod these latter years.
| said Gen. Lord.
haa
/ the heads OF great departments and
) important bureaus are suffering under
! a strange hallucinat1on," explained
I the director of the budget. citing the
annual reports OF these officials.
i Federal Activity Increased.
! With the heavy additional burden
/ of increased Federal activity thrown
. upon the Government, Gen. Lord said
the administration had nevertheless
! cut expenses.
j Pointing TO the estimates for 1872.
! now before Congress, representing
| "absolptionS of increased business to
| the saving of hundreds of thousands
| Of dollars" Gen. Lord declared, Fed
| eral administrators are making the
| dollar work harder than IL evei
| worked before
| III the five years OF operation of the
F, Budget Bureau, Gen. Lord said. the
| estimates of the executive depart
! ments had been reduced by 1864 ,064
/ 1853, but that Congress had made q,
| further cut below even the budget est
mates Of IL per cent.
An apparent increase of about sl4
| coo 900 instead of decrease IN eXpendi
| lures in 1925, as compared with 1924
| was reported by Gen. Lord TO be due
| to irreducible items, such as "uney