Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-06-22

penditure constituted nearly 60 per
cent of the total. In 1925 the cost of
all government increased to more than
eleven and a half billions. of which
only 81 per cent is represented by Fed.
eral expenditure.
The answer to this reduction of 81
per cent in the Federal share of all
governmental costs is not that we are
performing less service for the people
or neglecting our physical plant. The
real answer Is that we have so far put
our house in order as to decrease our
demands upon the people and to give
them more efficient government at less
cost. The local governments. like the
Federal Government, have no moneys
which they do not take from the peo-
pie. To meet an increase of more
than one billion dollars A year for
four years in the expenditures by the
States and their political subdivisions
there must have been corresponding
increase in levies upon the people on
In bonded Indebtedness.
Cause Seen for Concern.
situation. 1t Is fraught with grave
consequences to the public welfare.
The Federal Government has de-
creased its costs by practicing the
homely virtue of thrift. This has not
been an easy task. 1t has required
cooperative effort and sacrifice in
every direction. If the interests Of
the people demanded this action on
the part of the Federal Government.
surely they would seem to demand
similar action with regard to the In
crease in these other local govern.
mental costs
criticism Of the officers of our local
governments. 1t is rather a statement
of fact. 1t shows how hard 1t is In
these times to reduce the costs, taxes
and debts of governments. But It can
be done II the people will cooperate.
Unless they do. however. special in
terestS will continue to overwhelm the
legislative bodies for more expenses
and more taxes. The limit is close at
hand when further expansion In the
costs Of government will bring the
danger of stagnstion and financial de
preston.
We are testing out in this country
the success of self government We
require no property qualification for
voters. Students Of history have
claimed that under such a system IL
has too often been found that demo.
cratic institutions tend to confiscate
property to such an extent that eco
| nomic progress becomes Impossible
That has not been our experience. in
part because the Constitution pro.
tects us from legislation OF that ma.
ture. But this Is the test which
America must meet, and meet cor.
stantly. and unless it is met success
FULLY the strength. progress and pros
perlty of our country will cease. You
will readily see. therefore. the vas
and far-reaching importance Of your
eHortS and cooperation in the policy
or constructive economy.
Right Use of Money.
All of this effort would not he
worth while unless it had an ultimate
purpose above and beyond the mere
saving of money. We ought to use
money as we use any other utility
to advance the welfare Of the
human race. Money is not endow ed
with any sacred quality. Man was
not made for money. but money was
made for man. 1t has become q bso-
lutely necessary in these days Of
dense population. and under an ad-
vancing system of cooperation by so.
ciety. for what was once purely
more the character of a public func-
ton, II must. then he carried on
out of the public treasury. For that
purpose money must he provided Its
expenditure is required. But We must
have wise expenditure, we'll bal.
anced and within the means Of the
people.
That is constructive economy. 1t
does not partake of a mean and sordid
nature; II is not narrow and selfish.
but rather broad. generous and en-.
nohling. undertaking to deal justly
with the whole situation by raising
such revenues as the people can
fairly bear to meet such expenditures
as are fairly required The results
are systems to provide transportation
and communication, improved santa
ton. public order. the administration
of Justice. necessary legislation. ad.
vancing educational facilities and the
development of the artistic and
spiritual side of life. These provide
an evenly balanced basis for the SUP.
port of an enlightened civilization.
The result is America Into the max.
ing of that result and it's continued
success your patriotic service and de
vOtion is a contributing factor of enor.
nous importance.
olIltc Vi tIe OF the
budget has been established in order
to provide an advisory staff to the
President, the Congress and the vari.
GUS departments in their efforts TO
meet these requirements. At its
head Is Gen. Lord. The law has
clothed him with some authority, but
far greater authority is derived from
the character Of the man. His ability
and integrity inspire confidence He
has laid out plans for constructive
economy.
When I say that his plans have
not only been carried out but actually
improved upon in the Congress under
the leadership of Representative Mad.
den and Senator Warren. | mean to
extend very high praise to those two
seasoned legislators. These three men
are representative Of the spirit which
has made our budget system a success.
In order that we may further profit
by his counsel and encouragement,
present to you again the director Of
the Bureau of the Budget, Gen. Lord.