Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-01-30

STAR, WASHINGTON
| ter of personnel is of first importance
1t is a matter In which justice to the
employees and justice to the people
| must be equally conserved. 1t is the
money of the people which pays the
salaries of our employees. These sal
aries constitute the largest single item
in our overhead costs. The Federal
service should be adequately manned
but not overmanned. 1t may be i'm
possible to secure this exact level, but
every effort should be made to ap-
proximate 1t. Since the end of the
fiscal year 1921 the number of en-
ployes In the Federal executive civil
service. excluding the postal service,
has been reduced 10 900. This has not
impaired efficiency of operation. Rather
has 1t been one of the contributing
factors in increasing efficiency.
The chief incentive for perfecting
new and improved methods Of bust
ness is reduction in cost. That In
centive, which exists everywhere in
private business, should certainly ex-
list In the business OF the Federal Gov
eminent. We are serving more stock
holders than any other business.
When reductions of force are justified
they must be made. This does not
mean that we have no concern In the
welfare of employees separated from
the service by reason OF reduction of
force. l have recently issued an ex-
ecutive order that the names of those
so separated having satisfactory eff
cheney records be placed upon the re.
employment registers of the Civil
tNR~N tee sNN~ AtAx.A
appointments he made from the quail
fed eligibles thereon until the regis
terS have been exhausted.
Wants Adequate Salaries.
The Government has given evidence
during the last few years of it's CON
tinuing interest in the welfare OF It's
employees. The recently amended re-
tirement act has materially improved
the financial outlook for those EN-
ployes who leave the service because
OF age. The new travelallowance
law has provided adequate rates of
reimbursement for those travelling on
the business Of the Government. The
classification act of 1923 is continually
operating to improve the salary
status of the personnel in the execu-
tive departments and Independent es-
the question of adequatee and proper
salaries 70 rour employees. This is
both a natural and a necessary in.
terest.
In the last fiscal year there were
81, 486 employees at the seat of gov.
eminent in grades / to 4 of the
clerical, administrative and fiscal serv'
ice, with a. salary range from 81 lao
to W Gao. They comprised as per cent
of all employees classified under the
act OF March 4, 1928, and their av-
erage salary was 1,549. The average
salary in that year of 5000 employees
Of banks, financial institutions and in
surance companies in nine of the
largest cities east of the Mississippi
River, with duties comparing fairly
with those of the Government EN-.
ployes in the four grades mentioned
was $1,329. This shows difference
of 1920 per year in favor of these
employees In Washington. Since the
field services are on q comparable
salary basis. this favorable difference
applies to the much larger number of
employees performing the same kind
of service in the field.
The Federal Government exists only
for the good Of the people. If we do
not make every dollar count in doing
the needful things, we unduly enlarge
the amount required from the people.
The same is true If we unduly enlarge
the functions OF the Government. In
spite of three substantial reductions
in tax rates, we have taken from
the people something more than ac-
tually necessary to carry on the bust.
ness Of the Government. From this
has accrued the yearly SURPRISES
hi 1,nr f,,x,~ k-I t. Q..s.
Their reduction of the national debt
and the profit arising therefrom
through reduction in interest. These
surpluses would not have accrued had
the business Of government not been
well managed.
Cannot Forecast Tax Cut.
This year promises substantial
surplus, and we have every hope for
a surplus the next year. 1t is toe
early to forecast whether or not there
can be further permanent reduction
in taxes in the near future We are
waiting test of the producing ability
of the reevnue act of 1926. But what
we can, should and must do today
Is to keep firm grasp on our ex
penditure program. This is essential
II we are reap the full benefits of a
favorable revenue under the existing
law.
In planning your next years ex.
penditure program keep constantly
in mind the necessity of holding the
level of spending to a degree consis-
tent with efficient and productive re.
suits. Every dollar wasted, every
penny misspent, is confiscation OF
capital-a withdrawal of working
4 Fl dc ho fol re
ment and production. And in giving
consideration to plans or proposals
for charging the functions and &C.
tivities Of the Government apply to
them the measure, not of desirability
but of necessity
In making your apportionment Of
funds for the coming year, want to
emphasize again the necessity of set.
ting aside a reasonable amount in re.
serve to meet the contingencies which
may happen during the year We
have found this a profitable practice.
These reserves should not be released
to meet ordinary or routine require
ments. The true spirit of the re.
serve of which speak is to have
something In hand to meet contin.
gencies. II these do not arise, the re-
serves are then reflected in a direct
saving. They always reflect an In.
direct saving to the extent that they
make 1t unnecessary to call upon
Congress for additional funds.
Six years ago the cost Of the
Government was over $500 900 900
or $51 per capita. Total taxes were
nearly $4,000 ,000, 900. The index
figure Of the cost OF living was over
1870. To initiate a policy of construc.
tive economy at that time required a
great deal Of courage. To all ap.
pearances 1t was almost impossible OF
accomplishment The time when ii
would give any actual relief seemed
too far In the distance that there was
little incentive to make the required