Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-06-07

What do statistics tell the average
reader? What do they tell even the
expert accountant if read merely on
| the face of the figures without eX-
PLANTATION as to what goes to make up
the maze of mathematics? Like the
villains who assaSsinated Caesar, SO
statIsticians are "all-all honorable
men," yet how comes it that the Ma
tional Industrial Conference Board,
which is made up and supported by
several of the leading commercial or
CARNATIONS of America and which
maintains great offices in New York
with force of the most expert stat
isticians, computes the cost of gov
eminent in the United States at about
so per cent higher per capita of tax
payers than do the officials of the
Government. whether of the Bureau
of the Census or the bureaus of the
Treasury having to do with 'fggers"
or any other high authority? Fifty
per cent difference, yet everybody
correct. and nobody wrong.
x x x
One of the first lessons in practical
accounting is the difference between
Expenses" and expenditures" 1t is
quite possible to be headed straight
toward bankruptcy because of inordi-
nate expenses. without showing one
dollar of expenditures. 1t is also pos
sible to increase the expenditures of
the Government billions of dollars an.
nually while actually decreasing ex-
penses by billions. And that seems
to be the key to the alleged discrep-
ancy between the statement of the
Industrial Conference Board that the
cost of the Federal Government in
1926 amounted to $18.13 per capita
and the Bureau of the Budgets Off
cial and published reports that in
1913 the per capita cost was S12.S2,
while in 1926 it was S1229, exclusive
of the costs of the military training
camps and the Federal payment to
support State militia service and main
tain the Panama Canal. etc In
elusive of the new military items.
which did not exist in 1913. the total
cost of the Federal Government now.
counted at the purchasing power of
the dollar in 1927 compared with
1913, is $12.64 per capita, which is
still less than it was in 1913.
x X **
In fact, under the rigid policy of the
Coolidge administration the Federal
expenses mot expenditures - have
been cut about $4,000, 900 900 a year.
Nevertheless, the total cost of govern
ment of all kinds, including State and
local, or county. expenses, has in
creased something like $4,000, 900 900,
which indicates that the States and
counties have inflated their policies by
about $4,000, 100000 year since the
war.
Still, that does not explain how the
Industrial Conference Board makes
the figures for Federal costs $1S13
while the Governments own official
figures are $12.64. 1t would require
too much detail to show itemized diff
ferences, but the whole matter lies in
what is included in making up the
statistics.
For example. there is one little item
of billion dollars a year paid in in
terest on Liberty bonds and other
debts incident to the war. inclusive of
sustaining the Panama Canal and the |
defenses of Honolulu. but while the |
industrial conference includes that in
terest as an expenditure" it does not |
at the same time explain that the |
Government also collects interest on |
the obligations owed us for the loans |
of the proceeds of the same Liberty |
bonds to foreign nations. and also that |
the Panama Canal produces revenue. |
we have paid out half a billion on the |
of the Federal debt; that is |
an expenditure, but not an expense.
THESE hgureS are not given in accurate
detail, but only in round numbers to
Indicate the principle involved. The
details doubtless will be given out at
next Fridays council of the business
ORGANIZATION of the Government at
continental Hall, when Gen. Lord.
chief of the Bureau of the Budget,
Will present his report to the Presi-
dent, who will discuss policies of
economy.
There have been $2O9,964,751 of
taxes refunded to the taxpayers, under
decisions of court. They must be car
ried on the books as expenditures"
but they are not running expenses.
The costs of our Postal Service is all
carried as expenditure" but since
the postage paid practically covers all
that, 1t Is not a Government expense.
The Postal Service has grown imrneas-
arably in the last 13 years, through I
the expansion of rural free delivery !
md the introduction of air mail, but
10 have receipts. The expenditures
for soldiers adjusted compensation ,
amounted in 1926 alone to $120,152,23S {
and Government life insurance for
he veterans $3S,29O,346. though on :
he life insurance the cost is offset by
premiums paid by the veterans. Only
he outgo Is found in the "expendi.
ures." Since President Coolidge We ;
8 story not 70 be left at loose ends {
TrVck L..