Evening star., 1927-12-07
REDUCTION OF $8,O84794716
IN PUBLIC DEBT SINCE 1920
President Points Out Saving of $780,
100000 Annual Interest-Budget
Plan Praised.

contained in this budget reach a total
of So. sos. 793, 1866 which is exclusive OF
the postal service payable from pos
, tai receipts. A comparison between
the estimates in this budget and those
for the fiscal year 1928 should neces
sarily include the supplemental esti.
mates for 1928. Many of these were
presented to the Congress for consid.
Grafton in the second deficiency bill,
fiscal year 1927. That bill failed of en-
actment. There has necessarily been
a change in these estimates" He pre-
sented to Congress a table graphically
showing by comparison the estima tes
of appropriations contained in this
budget and the appropriations for 1928
coupled with estimates pertaining to
that fiscal year, making a new total
for 1928. A copy of this table is
printed elsewhere in this paper.
Document Is Complete.
The budget submitted to Congress
today is more complete than any of it's
predecessors. 1t is the intent of the
law creating a budget system for the
Federal Government that the annual
budget include estimates for all needs
of the Government for the full II
months for which budget estimates
are submitted, the President points
out. I'm our great and growing Gov
ernment changes are kaleidoscope, "
he said, 'and new needs and impera-
tive new demands arise overnight call
ing for congressional help.
THE Chief Executive is committed
by law to the policy of making each
annual budget a complete provision
for a full year, approaching the wis
IL nf yaA Ia
deficits are rare, supplementals, be-
cause of the reasons cited, persist. and
persist large in amount and many in
number.
Estimates of this character, which
have already been submitted to this
| Congress for inclusion in the urgent
! deficiency bill. total approximately
| S204, 100000. OF this amount, $106, ,000,-
| 600 is made necessary by new legisla-
| ton. OF the balance of approximately
| 9S.000.000 the sum of $4,000. 900 is
required for tax refunds, 1000 900 for
emergency flood relief, $S,000,000 for
claims and judgments, while the re.
mainder is needed for national de-
| fenSe or to meet demands of policies
that have congressional approval. The
non-enactment of the second deficiency
bill during the session of Congress
which closed March 4. 1927, necessarily
adds to the total of these supplemental
estimates which must now be present.
ed to the Congress-"
An important section Of the Presi-
| dents budget message deals with re-
funding taxes, and he says he be-
| lieves the time has come when es-
Inmates Of appropriations for such re-
| funding Of taxes illegally collected
should be reflected in the appropria-
| ton item requested in the budget.
He explains that in prior years this
| item Of expense, while reflected in
budget estimates Of expenditure, has
not been fully reflected in the an.
| nual estimates for appropriations. The
| operation has been conducted on a
| calendar year basis, the President
points out, by making the refundment
| OF taxes an item for inclusion as
| supplemental, rather than budget
| estimate. The present budget con.
tains an estimate Of $135, 900. 900 for
| refundment Of taxes for the full fiscal
year 1929, in harmony with the plan
to have the annual budget estimates
reflect the conditions for the fiscal
year to which they relate.
Supplemental Estimate.
The balance Of the current fiscal
year will be covered by a supple
| mental estimate, the President said,
explaining that:
''In the development of this plan
the estimates Of appropriations in
| this budget carry approximately
| $50, 10000 more for permanent and
indefinite appropriations than has ap-
peared in preceding budgets. This
is all in the interest of having the
budget estimates reflect actual re-
quirements. This is a step in the
right direction. 1t narrows the mar.
gin between our estimate of appro-
| priations and the estimate OF expendi.
ture. The latter estimate has always
carried these items, but their refiec-
ton elsewhere in the budget as esti.
mates Of appropriations is most de-
sirable. Taking the refundment Of
| taxes item and these additional per-
manent and indefinite funds together.
| we have an increase Of $3.50, ,000, 900
over what would have been required
under the plan Of estimates hereto
| fore followed in preparing the an
nual budgets. This is not a real in
crease. as these items have always
been included in the estimates of ex-
| penditure."
| Probably the most important inno-
vation in the present budget Is the
| cSlIIIIdt6 AUE GIduudl uQuIudlIOii VI tHG
| Government liability under the opera
ton Of the retirement systems, cor
related with which is the question Of
salary increases for civilian employees
under the classification act. The
| President finds that the Government
''is liberal in the treatment OF its EN-.
ployes," and that 1.-The rate Of pay
by the Government is higher than in
comparable places in private employ.
ment." In discussing these personal
questions in his budget message. the
President said:
"The budget herewith contains for
| the first time estimates or approprla.
tions for commencing liquidation or
1.-the liability of the Government to both
the civil service and foreign service
retirements. The Congress wisely au-
thoriZed submission of estimates for
! this purpose. This conforms to the
principle under which we have been
operating to amortiZe our long-term
commitments. For the civil service
retirement fund the estimate is $19,.
$50. 900 and for the foreign service re-
tirement fund $4,000. The Govern
ment board of actuaries estimates that
an annual appropriation of the former
amount for II years and of the latter
amount for so years will meet fully
the accrued and accruing liability of
the Government to these two funds.
Since these estimates are based on the
present pay roll, any increase in the
roll will be reflected in reduction of
the time in which the liability Of the
Government will he fully discharged.
An increase of l per cent annually in
the pay roll of those contributing to
the civil service retirement fund would
reduce the period of amortization
from II to AZ years.
Liberal to Employees.
1--WE are necessarily concerned In
the Federal pay roll. This concern in.
wolves both the interests of the tax.
payers and those who are on the rolls
The effort has been to do equal jus.
tice to both. The classification act OF
1928, with the extension of comparable