Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-01-29
COOLIDGE LAUDS
BUDGET SYSTEM
Executive Declares Financial
Plan Saved Country From
Economic Disaster.

4Ilc itAtr Oh lkle HTSSlQenLS speech
before the semi-annual business meet
ing OF the government last night
follows: t#-
THE present fiscal year will bring to
q close eight years of conducting the
finances of the Government of the
United States under the budget system
1t was put into operation to save the
country from. economic disaster. 1t has
been fully justified by the results In
the FIRST instance, the President. of
course, is, responsible for the direction
OF the system In the second place.
that responsibility is shared with the
Congress in making appropriations. In
the next place the responsibility for
efficient expenditures rests with the
chiefs of the various departments. But
IN the f1nal analysis success could have
been achieved only by the loyal CO.
operation and faithful service of the
great rank and file of the Government
personnel. To that great body, of
which you are the representatives. the
people owe debt Of gratitude, which I
especially wish to acknowledge at this
last budget meeting OF my administra-
ton. Without their devotion to the
cause of constructive economy we could
have done nothing With it we have
been able to do everything. The victory
has been their victory, and the praise
should be their praise
When We began the task in June,
1921, OF reconstructing our public
finances, 1t looked almost impossible of
accomplishment. The entire Govern
ment structure was permeated with ex-
travagance. The expenditures for that
fiscal year, exclusive of debt reduction
were about $4,000, 100000. The interest
charge alone was more than 81 900 600 =
600, and our outstanding Indebtedness
was nearly $24,000.0 00,0 900. The busi-
ness OF the country was PROSTATE. It's
olfterent branches of agriculture. COM
merce, banking, manufacturing, and
transportation were suffering from
severe depression. Employment was
olInculC 10 secure. Wages were declin-
ing. Five million people were out of
WORK. The price of securities, even of
Government bonds, was very low. It
was difficult to find any market for
commodities. Confidence in our entire
economic structure had been shaken.
Progress had stopped.
~ is easy to see what the condition
OF the people would be under such cir
cumstances. Those who had property.
even though it was much diminished in
value, could take care of themselves
as they always can. But to those who
were carrying on business with bor-
fowed capital and had outstanding
notes and mortgages there seemed
nothing ahead but ruin. Wage earners
and their families were faced with want
and misery. The cause of this distress
was not difficult to ascertain, The
country had been living beyond its
means. 1t had been spending much
more than 1t was earning, which meant
that 1t had been using up its capital
the savings Of previous years were
being exhausted, principally through
Government extravaganza.
Not . Pleasant Picture.
This was not q pleasant picture to
behold. II relief were possible, those
who were able to provide it could well
afford to be charged with considering
nothing but the material side of life,
with advocating q penurious and
cheese-paring policy, and with neglect
ing to supply the public needs. If a
remedy could be found, when it was
put into operation business would re-
vive, profits would increase, employ
ment would be plentiful, wages would
be good, the distress of the people
would be relieved, and a general con-
dltion OF contentment and prosperity
would prevail. Whatever criticisms
there might be against those who had
labored to secure this result, the salts
factory condition of the country would
be a sufficient answer and a sufficient
reward.
THE evils and abuses of Government
extravaganza were perfectly apparent
IT was believed, and as experience has
demonstrated, correctly believed, that
the distress OF the country would be
relieved II Government extravaganza
ceased. 1t was for this purpose that
the radical and revolutionary system
was adopted of centralizing in the
President the primary authority for the
recommendation of all departmental
estimates and establishing for his in
formation and advice the Bureau of the
Budget.
Seemingly without effort, but actu-
ally by hard and effective work, the
change was wrought. Each of the sue
ceeding years brought an ever-increas-
ing Improvement in the business of
government. Expenditures diminished
until 1927, when, exclusive of the
amount applied to debt reduction, they
reached a point below the So, 000, 900 900
mark. This was $4,000, 000, 900 below
1921. Billions were cut from the public
debt with. large saving of interest.
The first tax reduction came in No
vember, 1921, and was followed by
three succeeding reductions. Funds
were saved to meet the cost of our
much needed public Improvements,
which had been in allegiance during the
war period. Short-time notes and long
time bonds were paid off and refunded
at lower rates.
Working in that spirit which force
fully asserts itself in time of need. the
executive and legislative branches of
the Government, with the backing OF
the people, have inserted a golden page
in our history. 1t fittingly portrays that
peace hath its victories no less than
war. In the short period Of seven and
one-half years the public debt has been
reduced $6,677, 100000. The total saw
ing in interest alone from this and re-
funding operations is 1868 100000. -Four
reductions in taxes have returned to the
people approximately $4,000, 100000 a
year, which would have been required
had the revenue act Of 1918 remained
in force. Two and one-half million
people have been entirely relieved of all
Federal taxation.
Departments Welded.
lone of the first essentials in tht
work of making the Federal Govern
ment real business organization was
the welding of the various department:
and independent establishments into a
harmonious, efficient concern. We founc
40 independent departments and estab.
lshments, each operating under its owr
customs and rules, utterly regardless o.
the existence Of other department!
which were parts of the same great es'
tablishment-the United States O
America. There was little communit,
of thought or harmony of action Deep
seated hostility between certain Gov
eminent agencies existed. That tn
National Government ought to be on,
great entity, responsible for the happi
ness of 100000 of people, was en-
tirely overlooked in the exclusive devo
ton of groups of Federal officials ant
Vay,Ioyyac 10 ann IT; az