The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1929-01-29
PRESIDENT LAUDS
!: BUDGET SYSTEM AS
GREAT STAbIL|ZER
Putting It Into Operation, He
! Says, Saved Country From
Disaster in 1920
COSTS PERIL
General Lord Stresses Steady
Mount of Expenses as Rea-
son for Tight Policy

son for Tight Policy
- -
Washington, Jan. 29-(AP)-Ad.
dressing the business organization Of
" the government for the last time,
president Coolidge Monday night is
Issued warning that rigid economy
-'.in federal expenditures must be con-
tinued and he rapidly mounting"
cost Of state and local governments
must be sharply curtsiled II national
!. prosperity Is to be maintained.
= At the same time, the chief execu.
Tive declared that the budget sys-
item. put into operation to save the
s~country from economic disaster" had
.@been fully justified by the results Of
Its eight years Of operation. He
--paid tribute to Brigadier General
Herbert M. Lord, director Of the
budget bureau. and the great rank
Ian file Of the government personnel
FOR the cooperation which he said
had made the system a success.
= The presidents address was deliv-
~ered at the sixteenth regular meeting
of the business organization. The
sessions are held semi-annually and
~are attended by cabinet officers,
@heads OF governmental bureaus and
federal employees charged with the
responsibility Of disbursing federal
funds.
Lord Would Save on Vacancies
General Lord, the only other speak
cr Of the evening, declared that q
steady icrease In national expendi-
lures must be expected. q circum-
stance which, he said, must not
weaken the governments budget
policy. As one means Of averting q
threatened deficit for the present
fiscal year. he recommended that
vacancies be allowed to remain UNI
filled until after June 30, bringing
about saving which he estimated at
the far from negligible sum Of STA
$4,000"
After enumerating the accomplish
ments Of the last eight years, Mr..
Coolidge declared that much re-
manned to be done. In spite OF de-
termined efforts for economy, savings
In interest due to reduction Of the
national debt. and four reductions In
taxes, he said, government expendi-
lures are showing . tendency to in
crease. Bills pending in Congress q
short time ago, he estimated, would
have doubled the annual national
outlay. while measures are now on
the congressional calendars, approved
by committees, which would, II
passed, cost the government more
than billion dollars. But for q
policy Of rapid economy he said
many of these would have become
law.
Prosperity Is At Stake
1T would be great mistake ia
suppose that we can continue our
national prosperity" the president
continued. with the attendant bless
ings which it confers upon the peo-
pie. unless we continue to insist up-
on constructive economy in govern
ment. The margin between prosper
tty and depression Is always very
small. A decrease Of less than 10
per cent In the income Of the nation
would produce deficit in our pres
cnt budget.
THE cost Of state and local gov
SA4sSSsSAAs0 GIN A0RAQAy LlOOUVlklR
From $500. 600 900 in 1921. the Ma
tional Industrial Conference board
estimates that they reached $751;
100000 In 1927. This Is such Z heavy
drain on the earnings Of the people
that It Is the greatest menace to the
continuance OF prosperity. It u Z red
flag warning US OF the danger Of de-
preston and repetition Of the dis
aSter which overlook the country IN
the closing days Of 1920. It Is q
warning that should be needed BY
every one entrusted with the expen-
dtture or appropriation OF public
funds. It Is the reason that further
commitments BY the national govern
n,ent for any new projects not abso-
lutely necessary should DO faithfully
resisted"
Employment Involved
Mr.. Coolidge outlined the condi-
lions he said had been prevalent
when the budget system was insti-
tuted. enumerating depression Ii
business, declining wages, unemploy-
ment. lack Of markets, and the low
price Of securities, including govern
ment bonds.
Confidence in our entire economic
structure had been shaken" he said
Progress had stopped"
The country. Mr.. Coolidge contin-
ued, had BEEN living beyond its
means. spending much more than It