Evening star., 1928-01-31
TAX REDUCTION IS STRESSED
IN MR.. COOLIDGE'S MESSAGE
Orderly Use of Resources of People of
United States Held Aim Of
Government

: itch contribution to the present splendid
/ financial status Of the country. II has
enabled us to hire money at lower
! rate than any other business in the
J world, II mas been effective III the
! maintenance of prosperity. It has the
/ hearty Endorsement of the taxpayers
/ That policy of a balanced budget-eX-
! penditureS within recciptS--muSt not be
molested. II must not be endangered
| The great good which has come to this
country from balanced budget is too
meaSureleSS. too far-reaching. even to
suggest any other course This Nation
is neither too weak nor too improvident
to meet its obligations as they occur.
The budget for 1929 which fore
casted a surplus of 52.540,00 is now
before the Congress. The action so far
taken by the Congress on that budget
indicates TO intention of diminishing
the expected surplus. With a continual :
ton of the efforts for economy in Fed
eral operations we can have a moderate
reduction in taxes and at the same
! time adequately meet the urgent ma
tional problems which are now con-
fronting us. Past economy has given us
the means for internal improvements
and developments and more adequate
national defense. But we cannot stand
the cost of the things which we should
and must have. if we adopt excessive
tax reduction. II is far better TO have
no tax reduction than to have too much,
We have the public debt to which tc
apply every dollar of whatever surplus
may accrue. That. indirectly. is tax re-
duction Every dollar applied 10 the
debt saves perpetually the interest on
that dollar. It is contribution to the
welfare OF the people. a logical step
nearer adequate tax reduction.
Duty Is Cited.
TO you of the Federal service comes
the duty-I may say the privilege-of
continuing the campaign of rigid econ
on1y OF public funds. The success which
has crowned your past efforts is even
more essential for the future Last
year, 1927, our expenditures reached
the lowest level since the world con-
hict This year they have necessarily
taken an upward curve. We must hold
that curve in check.
We are wiser from the effort which
brought our expenditures TO the low
ebb of 1927. That effort was started
in June. 1928. and had for its objective
reduction OF our annual expenditures
10 $4,000, ,000. 900. In fixing that amount
We excluded alone the amount applied
to the reductions of the public debt. It
was a courageous undertaking. We
spent in 1928 1926. 900. 900. Our
campaign. therefore. contemplated the
elimination of S295, ,000, 900 from our ex-
penditures. Unafraid and unterrified
bravely sought your objective. While
in some Of those fighting years you lost
ground. the average tendency was
downward. Despite what must have
been at times most discouraging con-
ditions. you never lost hope. Notwith-
standing legislation that swelled ex-
penditures by many millions you still
fought on. undismayed At the end of
the fiscal year 1927 you saw your brave
effort rewarded with complete success.
The expenditure for that year. exclu-
sive of reduction OF the debt. was
So. .s74. .000, 900. This gives a reduction
below 1928 of 1921 ,000, 900. Truly you
fought good fight. congratulate you
on your very great and constructive
achievement
IF we added the constantly arising
new and urgent requirements to what
we are already doing Federal obiiga-
tions would simply be a mathematical
addition. We have not been doing this.
Each year all of our expenses which
are not specifically fixed by law are
given exhaustive examination. In this
way We have excluded old activities no
longer necessary or have curtailed them
where curtailment was proper. This
has made contribution toward meeting
new and urgent needs without the re-
ouirement for greatly increased funds.
This progressive and systematic ex-
animation Of all OF our activities must
constantly go on. II is the only way
TO bring real economy into the Govern
ment's business This applies to our
continuing work. This scientific eSti-
mate Of our requirements has not pre-
vented substantial saving In their
actual execution after the appropri-
ations have been granted. The Con-
gress has wisely protected its appro-
priations by laws 10 prevent their over
obligation. Those laws require an
orderly apportionment OF appropriated
funds so as 10 prevent obligations being
incurred in one part OF the year which
would give rise 70 a deficit in another
part Of the year. We have carefully OBJ
served that requirement We have
gone farther IN our apportionment OF
funds by setting aside general reserve
TO provide for the unexpected.
Needs Are Arising.
Requirements that cannot be sched-
! uled. needs that cannot be !oreseen,
are always arising. They generally re-
suit from conditions that make the need
urgent. II the need does not arise the
money is saved. The wisdom Of that
| policy has been definitely shown. It
! has justified itself so fully that there
/ Is little need o! my expressing 10 you
| again my expectation that you win
! continue 10 adhere 10 IT, The budget
/ gives the President the opportunity OF
( expressing 10 the Congress what he re-
/ ouires The appropriations which may
/ be granted By the Congress constitute
| the maximum which you can spend
| They do not constitute the spending
minimum. From the reserve balances
| which have been set UP in the budget
! years 70 June 30 last. $3.50 100000 has
| been saved This has gone 10 debt re-
| ductlon. II may add To the under
| standing Of the concrete benefits OF this
| course 10 state that the amount saved
| through the general-Tesfrye policy eK-
| cefdg the amount which the engineers
| estimate Is required for Mississippi flood
| protection. Il should be matter of
| gfat.fication 70 Federal administrators
| that their loyal adherence O TINS re-
| s44rge policy has resulted 50 happily.
! This splendid result Is the p0Ilcy's elo-
| oueft ana unausWerable advocate.
| Economy In Federal operations Is
| here u stay. True economy means the
| announcement of unnecessary ezpend!~
/ ttIfes II carries no thought of uhwise,
Unsxientlflc limitation. Rather. II makes
ample provision for things that must be
zone. Pressure for retrenchment. in
sistence upon wiser spending. have fur"
| niAied capital ~ meet our new demands
! without expansion of our expenditure
program. We cannot, absorb by economy
| ri! of our prospective new requirements
II .e &Ds,fb Al much as possible. VIZ