Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-08-11
w WITH President Hoover launch
n ing a survey Of the costs OF
w the Federal der ,, Government s1,ar',,rtt ell

".
tor Of the budget
A man of wide experience in govern
mental and private finance. Mr.. Roop
will be the third man who has held
that Office the others being Gen. Her
bert M. Lord, q former of1cer OF the
Regular Army. and Gen. Charles G.
Dawes, who won hts military title In
the World War.
A Nebraskan, Mr. Roop served as
assistant to Charles G. Dawes during
the first year of the operation Of the
budget. and then followed his chief TO
France. where he served with Gen.
Dawes In co-ordinating the purchases
Of supplies for the American Expe-
dictionary Forces. Since the war Col
Roop has been associated with banking
interests in Chicago. He was member
Of the Dawes mission that went to
Santo Domingo this year to help re-
organize the finances of the island
republic.
T.: Near Status Of Cabinet Post.
President Hoover has made known
that Col. Roop is entering the Govern
ment service again at a considerable
financial sacrifice. He is expected to
take up his duties In the Capital the
latter part Of this month.
AS head of the budget. Col. Roop will
enjoy virtually a cabinet status. for no
member OF the Presidents official family
has greater responsibilities or comes
more closely into contact with the Chief
Executive. President Hoover already
has given indications of his intention
Of carrying out the policies OF former
President Coolidge In streSSing economy
In Federal expenditures. Since he took
once on March 4 he has been in con-
ference several times a week with the
acting director of the budget and when
al bar he will ind ia
President Hoover will want to see him
at least once week, probably two or
three times week II was by such
conferences that President Coolidge kept
so closely in touch with the details of
Federal expenditures. With economy
equally the watchword of the new adj
uninistration, President Hoover will wish
TO keep In close touch with the Budget
Bureau.
Movement Started by Taft.
=, The movement for the establishment
ref the budget system goes back many
Years. In the administration Of Presi-
dent Taft a commission on economy
land efficiency was appointed. The COM
mission carried on its studies during
1S10-19l3. and at the end of that time
made two reports to Congress. The first
of these was entitled the Need for a
National Budget" Though the work
OF the commission led to no tangible re-
suit, II did serve to bring before the
public the need for change in existing
procedure. by revealing the many de-
fects Of the old system of making ex-
penditures.
In the Fall Of 1915 the Institute of
Government Research was established
In Washington. This was private in
stitution. having as It's main business
the scientific study of government ad-
NainiefPaffA tVacf l. avV,iea
strongly advocated the adoption of
Acientiflc budget system.
Costs Soar with World War.
Then came the World War. and the
costs Of the Federal Government scared
skyward. At its peak the public debt
alone totaled $4,000, 100000, and the
taxes most OF the cost Of the Govern
rent. Almost for the first time in our
history, the Government faced a real
problem In balancing income and outgo.
Congress began to realize that some
sort OF change was necessary. There
must be both retrenchment in the vot-
ing OF funds and increased economy in
the expenditure of funds. In 1919
James w. Good, now Secretary Of War.
was chairman Of the House committee
on appropriations. No one better than
he was able to see the defects Of the
system then in operation. After read
ing the literature on the subject. M
Good decided that he would first in
troduce resolution calling for the APP
pointment of a select committee on
the budget" to be composed of -
members OF the House, with instruc-
lions TO make thorough study of the
subject and report its recommends
tions. The House adopted this resolu-
ton on July 81. 1919. Mr.. Good was
made chairman OF the committee. After
exhaustive hearings, the committe,
submitted a bill.
Harding Signed Measure.
When President Wilson sent his mes
sage TO Congress at the beginning Of
Its regular session on December g
1919. his first recommendation was for
the Senate the later Medill Mccormick
took the lead in advocating the adop-
tion OF the budget system. After
good deal Of discussion and delay,
bill finally passed Congress, and on
June 10, 1921, was signed by President
Harding. II has become known as the
Budget and accounting act. 1921"
The principal features of the act are:
The direction given to the President
70 prepare annually for submission to
Congress a document to be known as
the budget, which should give complete
information regarding the condition OF
the revenues and the Treasury and eX-
penditurcs in the past. and his program
for future expenditures, with presen-
tation of the manner in which such ex-
penditureS should be financed: the pro-
hibition Of any other officer of the Gov
eminent to request the grant OF funds
except when called upon TO do so by
the President; the provision for new
service to be known as the Bureau OF
the Budget, which should act as an
agency Of the President for the prepare
ton of the budget: the creation OF a
new service. the General Accounting
once. with Controller General at
It's head which should be an independ-
ent establishment and take over all the
duties formerly carried out by the
Controller of the Treasury and the six
auditors Of the departments.
OHiccs Abolished.
These Offices were abolished.
The Bureau of the Budget spends
about 100000 year. The act OF Con-
sress it may be noted, confers no pow
ers directly upon the Budget Bureau.
All grant of powers was made to the
President and the bureau operates as an
agent Of the President. Congress had
two reasons for this. One was to make
it clear that the President was head OF
the administration and that 1t did not
propose to set UP an agency that would
control or dictate to the Chief Execu-
tive. Second, Congress did not want to
make Of the director of the budget
position that would be superior to the
cabinet. Acting as the agent OF the
President, the director or the budget
does not occupy a position above and
apart from the executive departments
Of the Government.
AS director of the budget. Col Roop