Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-08-28
Department and Bureau
Heads to Be Summoned
on Presidents Return.
PREDICTION OF LORD
CHAGRINS EXECUTIVE
Forecast of $4,000, 900 Shortage
Came While Balanced Budget
Seemed Likely.
BY J. RUSSELL YOUNG.
STAFF Correspondent OF The Star.

CEDAP ISLAND LODGE, BRULE
RIVER, Wis, August 23.-President
Coolidge intends TO summon the various
department and bureau heads for q
conference shortly after he returns TO
Washington in an effort to avoid the
huge deficit predicted by Gen. Lord, di-
rector of the budget, for the present
fiscal year
The President made it very plain
while he was discussing the subject
today that he was disappointed at the
unfortunate turn in the Nations A.
nances, and he indicated that he Is de-
termined to do everything within his
power to cut down the predicted deficit
If not wipe 1t out entirely before the
present fiscal year comes to q close.
Mr.. Coolidge realized that the Gov
ernment would be running dangerously
near a deficit as result of the huge
outlays of money for the present year
and the natural expansion in the Gov
ernment's activities, but he was sur
prised to learn from the director Of the
budget that the deficit would reach as
high as $94,00O,00 as predicted by the
latter in lis recent annual report. AS
matter of fact. the President had
actually hoped that despite the IN
creased appropriations for the present
year there would be balanced budget
on June 81 next.
Plans of President.
The Presidents plan now is to gather
all the departmental and bureau heads
about him for the purpose of impress
ing upon them the urgent necessity for
reductions in their operating expenses.
He will insist that the severest econ
on1y be exercised during the remainder
Of the year. He will insist also that
all activities planned that are not abb
solutely imperative or necessary At this
time. even though money is available
for them. be abandoned until another
year, and that money be spent only
where It is essential 10 the ssfHcient
functioning of the Government.
1t was indicated here today that the
President will call this meeting of de-
partnient and bureau heads immediate
" upon his return. There is no mis-
taking the fact that he is considerably
disturbed over the gloomy prospects re-
vealed by the report of the director of
the budget and he does not propose to
sit by idly and see the Government run
into huge deficit. If he can do some
thing to prevent 1t.
Mr.. Coolidge does not anticipate any
material change in the preliminary
budget estimates for the fiscal year be-
ginning next July as a result Of the
forecast deficit for the present year.
He believes 1t quite natural, however.
to feel apprehensive about the state OF
the Treasury at the end of the next
fiscal year II the Government is running
behind during the present year.
May Trim Estimates.
Therefore he Is determined to exer-
else extreme care in the preparation of
the budget estimates for the next year.
This caution may call for some further
trimming in the estimates. He will
determine this after he has returned to
washington and has had an oppor-
tunity to confer with the director of
the budget and the heads of the de-
partmentS and bureaus.
Senator Arthur Capper of Kansas.
chairman of the Senate District of Co
lumbia committee. called at the execu-
tive oftlceS during President Coolidge'S
visit there today. The Senator, who
mas been fishing at Red Cedar Lake
as the guest of Paul Faust of Chicago.
said he will reach Washington FRIDAY
or Saturday and will confer at once
with the experts who have been study
ing the merger proposal from the yalu-
alton standpoint. Early next week the
subcommittee of District committee OF
the Senate will hold a meeting and
discuss the street railway merger propo-
sition informally. but no report will be
mace by the committee until Congress
meets.