Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-08-10
MILLS BARESPLAN
Of CALLING BONDS
Funds for Second Liberties
to Come From Sale of Flu
ture-Date Obligations.

! By the Associated Press.
| CHARLOTTESVILLE, Va, Angus
| 10.-Plans of the Treasury for re
demption OF the second Liberty loan
of which approximately 1.216,0OO. 0o'
! is outstanding, were disclosed toda,
by Acting Secretary Mills in an ad
dress before the Institute of Public
/ Affairs at the University of Virginia
Funds necessary to retire the issue
November Is will be obtained from
sale of OBLIGATIONS which will matu,-
on a future quarterly tax paymen
date.
Further reductions in the amoun
of outstanding seconds is anticipated
before November Is. At the time o.
the sale of the new obligations they
will be offered in exchange for the
old maturing bonds. a number Of
holders are expected by. Mr.. Mills tt
avail themselves of the exchange priv
ilege.
Retirement for Cash.
when the entire transaction Is
comnleted, of S3,104 100000 seconds
many will have been retired for cash
others will have been exchanged FOL
longtime bond bearing materla lly
lower rate of interest; others into 30
wear 3la per cent notes. and others
into short-term certificates carrying
a low rate Of interest"
Discussing Treasury financing, Mr.
Mills pointed out that it centered
largely about the public debt. and that
the cost of government had been re
duced by decreasing the public debt
by S5.4S6 900 900 between June 80
1921, and the close of the last fiscal
year and lowering interest charges by
approximately $500, 100000 annually.
SeOO,OOO,OO Surplus Seen.
The best budget estimate availa
BILE at this time promises a surplus at
the end of the fiscal year of 1928 IT
excess Of 100000 900. Herbert NJ
Lord. director of the budget. said be
fore the institute last night.
In his address Mr.. Lord explained
something of the condition of the
budget at the conclusion of the late
war and the functionings of the bu'
reau since that time.
THE Federal debt at that time was
more than see 900 900, 900" he said
000, 900 more than receipts. At this
period there were 656,672 persons in
the Federal executive civil service
and this did not include postal clerks
A need of an agency to remedy condi
tons was seen and Congress and
President Harding approved the or
ganization of the Bureau of the Bud
get with director at its head"
The speaker pointed out that the
director serves as the Presidents gen
aral business manage in routine mat.
ters Of the governmental business, in
Guiding the preparation of estimates
for funds.
Lack Of Team Work.
zone of the greatest sources oi
waste and inefficiency in the Fedora
Government was the lack of team
work. the speaker continued. "Wher
the bureau was founded. it was neces
sary to revolutionize the mental at
titude OF the people in the service--tt
make them think in terms Of tht
| United States instead of bureaus anC
departments.
AT the present time there is NJ
business body that is more efficient
| than the business organization of the
Federal Government as it is now
operated. 1t has been the custom fol
years 10 accuse the federal agencie:
and federal personnel OF waste ant
extravaganza. If such attacks wer,
justified in the past they are not now
There has been only one deficit since
the end Of war and that was in 1871!
when it was in excess of sl3 900 900,
600. But the next year, 1920, there
was a surplus of S2l2 ,000, 900 and each
year since that there has been size
able surplus. which. in 1924 and AGAR
in 1927. exceeded more than $500 900,
| GOO. The SURPRISES from 1920 TO 1927
inclusive, totaled nearly s2.75 900. 900
Of which $2,4s2 900. 600 was accumu
. lated during the budget period. Thi,
amount could, and probably would
have been wasted had it not been 70,
the well directed efforts of Congress.
Reduction of War Debt.
"One of the most cxtraordinar,
achievements has been the reduction
! of the great war debt, the speaker
| said. IT has been reduced more thar
| 81 600 900 900 "A year. on an average
50 that December q. last, the tota
was $40 ,074 600 900" said the director.
Various statements have been mad.
! III we reached the lowest poSsibl,
| limit in gross expenditures. yet tn,
work for better methods. less waste
| greater economy in operation will e
on. Today the value of Fedora
cmployc is & uged not by the amour
Of money he spends. but by TIL
amounts he saws. and that not Will
any sacrifice Of efficiency. but with in
creased efficiency. but these two ar
not comparable" Mr.. Lord said.
The program for the morning AM
| afternoon yesterday consisted chief,
Of formidable conferences with taxa
| ton and the relation of newspapers t,
public affairs, figuring prominently il
the discussions.
Group conferences on the industrial
zation Of the South. farm relief an
State and county governments wer
continued today.
DR. Gus Dyer OF Vanderbilt Uni
| versity. who Yesterday told the dele
Gates that Southern industrial progress!
is forcing New England to fight 70
/ its industrial life. presided over til
| conference. discussing the South's de
| Vel0pment. DIR. John NJ. Coulter
president Of North Dakota 4. & NJ
College, located in the corn belt. ie'
the discussion of farm relief and ID
A. II. Hatton of Northwestern Tn
| Versity headed the conference on Stat
| and county governments.
q