Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-01-31

countering of opposition. We shall
not be able to do much good to our
selves or make much contribution 10
the welfare of the world. unless we
continue the same struggle and make
increasing sacrifices.
To me, all these proposals for con-
servation and economy do not seem
either selfish or provincial. but rather
they reveal a spirit dedicated to the
service OF humanity. If these things
are not important, then there are no
earthly considerations that are i'm
portant.
Although these accomplishments
are past history and ought to be
known of all men, yet it Is well that
they be recalled and reiterated. in
order that we may better understand
the general plan which not only all
the people In the Government but all
the people in the country are engage0
in putting into effect. The penalty
for achievement is always a demand
for even greater achievement. In
this effort for retrenchment you have
not disappointed the people or the
President, and it is my firm conviction
that you never will. If you at times
grow weary of the constant stress
put on economy, you will see that
something more is involved than can
be measur in dollars and cents. The
spirit of real constructive economy is
something higher and nobler. 1t does
not imply so much limitation as an
attempt TO be free from limitation.
1t does not contemplate curtailing
ample supplies for worthy purposes
and real needs, hut it is the enemy
of waste and the ally of orderly pro-
cedure. 1t is an attempt to increase
and enlarge the scope of the individual
and the life of the Nation.
Expenditures Mounting.
How great need exists TO empha-
size the homely fundamental virtue of
gOy ernment economy is seen when we
contemplate the mounting tide of eX-
penditure and Indebtedness of mu-
ncipal and State governments. This
tendency is one of great concern. The
very fact that the Federal Govern
ment has been able to cut down its
expenditures. decrease its indebted
ness and reduce its taxes indicates
how great Is the accomplishment
which you have made in behalf of the
people of the Nation. These results
are all monuments to you and to the
Congress. 1t has been your work and
your cooperation that has brought
forth these fortunate conclusions.
opinion that we cannot look for
further reductions in the cost of the
actual transacting Of the business Of
the Government. 1t is only natural
that the normal growth of the Nation
would produce some expansion. But
constant scrutiny is necessary to pre-
vent foSSiization and decay. Care
full oversight of personnel is always
required. The pay roll represents the
largest single item In the business of
the Government. During the past
calendar year this has been reduced
locally by more than 5000 names-an
annual saving Of $4,000 .0oU-although
when persons are dropped from one
department they are always taken
care OF in another wherever possible.
Past experience has shown that a
reduction of taxes has been followed
by increased prosperity. AS the vol
lllne of business increases the Federal
revenue Increases. If We are mod
crate in our expenditures, the natural
increase in profits ought within the
next few years to furnish US again
with surplus revenue which will per
nit further tax reduction.
Retiring Old Debt
We were the first Nation in recent
years to adopt Il plan TO reduce our
debt and put the plan into operation.
We are maintaining our sinking fund
and applying the payments made on
our foreign loans to the retirement
of our debt. AS a result this Nation
has today the best credit In the world
We have lowered our interest costs
not only by reducing our debt, but by
so improving our credit that we can
borrow at lower rates. Since interest
is 22l2 per cent of our total Federal
expenditures, a reduction In Interest
IS most fruitful field for permanent
saving. If we continued this plan
during the postwar depression. there
IS certainly little reason for changing
1t in these days of prosperity.
Very soon you will have your ap-
preparations for the next fiscal year.
1t would be wise early to lay out a
carefully prepared program in max
ing the apportionment over the sew
eral periods of the year, as is required
by the law. II all our expenditures
are wisely planned and wisely made,
retrenchment will take care of itself.
You should not forget to lay aside an
emergency fund. Something unex.
pected usually happens, but if it does
not real saving is made. The re-
serve set up In this way for the last
fiscal year has an unexpended balance
of SEA ,000, 600. It Is of the utmost i'm
portance TO remember that construc-
tive economy means preparation for
the future. Our country is in need of
internal improvements and develop
ments. A new building bill IS under
way. and our great interior should be
provided with river and waterway IA
eil1tieS. These two projects represent
a capital investment on which the re-
turns will undoubtedly justify the
costs. But we should beware Of in
creased permanent commitments.
When the Government rents pri.
vately owned buildings 1t pays a high
rate of interest, all the taxes. and
some profit. When it occupies its
own buildings the interest represented
IS very low, and taxes and profits are
eliminated. The opening up of water
ways means the development of COM
merce, less cost for freight on raw
materials, and a large saving to our
agricultural regions. The extent to
which these projects can be under
the outcome Of the pending tax bill.
Aid All Development.
What all these efforts mean would
be greatly underestimated IL it be
thought that they begin and end with
the saving of money. Considered in
their entirety, they play an important
part in the wonderful American ex-
pertinent for the advancement Of hui
man 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 100000 automobiles
and put a telephone and a radio into
so large a proportion of our homes,
but 1t is also the method by which we
have founded schools, endowed hos.
pitfalls, and erected places of religious
worship. 1t Is the material ground
work on which the whole fabric of
society rests II has giyap IN Tho