Evening star., 1931-12-29
Budget Cutting.

Budget cutting has become Uncle
Sans newest puzzle. Up to couple
Of years ago it appeared as though the
Government had an ineXhaustible sup
ply Of money, which rolled into the
Treasury in great waves Of revenue
from income and other taxes. Watch
dogs Of the Treasury. so called urged
a pairing down of expenditures, that no
new Jobs be created, that Government
bureaus and new divisions be not add
ed to the already huge machinery OF
administration. But the watchdogs
rrowled in vain. No one needed them
and their warnings. Today members
Of Congress and the Executive are in
a quandary, trying to make up their
minds where the personnel should be
cut down or If it should be cut down
and how to reduce expenditures for
the many bureaus and services Of all
kinds which have developed.
President Hoover kept his department
heads hard al it, cutting down their
budget figures last Summer and Fall,
Millions Of dollars we're Topped off the
estimates, and then the Budget Bu-
reau used the pruning knife right and
left. But when the budget was sent
to the Congress, it still totaled the huge
sum of $3,996, ,672 45O. This was a re-
duction of S365 100000 as compared TO
the expenditures for the current fiscal
year. But the American people are
thinking more seriously today than for
q long time Of what their Representa-
tives are doing in the way of spending
Government money. The reason is
simple one. In these times of peace
the Congress is going to raise the tax
rates and impose new taxes on the
people. The pressure, therefore, upon
Congress to cut down expenditures, so
that the tax burden may not mount
higher than is absolutely necessary, is
growing constantly.
Leading members of Congress on both
sides have become convinced that the
country demands retrenchment Of gov
ernmental expenditures. There have
been many manifestations that Sena-
tors and Representatives have this in
mind. One of the latest was demand
by Senator Borah Of Idaho that all sal
aries paid by the Government $4,000 or
over be cut ten per cent. Another was
q resolution offered by Senator Harrt-
son Of Mississippi pledging the Senate
to q reduction Of the appropriations for
the coming year $4,000 900 below the
budget estimates.
Just how such a large sum is to be
pared from the already reduced esti-
mates no one has yet been able to show.
There has been support in a number
Of quarters for reduction of Gov
eminent salaries, while on the other
hand the idea has been resisted. If all
salaries, including those of the civil
service, the Army, Navy and Coast
Guard, were cut in this fashion, 1t has
been said that the saving to the Gov
ernment would be about $l50000,000.
Suggestions that salaries be not cut
except those above $4,000, as suggested
by Senator Borah, OF $4,000, as sug-
gested by Representative Rainey, Demo-
cratic floor leader of the House, would
materially affect the amount of the
saving to the Government
The reconstruction plans to aid the
country out Of the present business de-
preston call for the setting aside, at
least, Of large sums Of money by the
Government, presumably to be raised by
the sale Of bonds. The proposed Recon-
struetion Corporation, which would op-
crate in manner similar to the War
Finance Corporation during the World
War, will need a half billion dollars,
for example, and the Federal Farm Land
Banks will require large sum under
these plans.
How to cut and where to cut, with
out hamstringing the Government sery-
ice, is the problem. One thing appears
certain, however. There will be cuts in
the appropriations If the present temper
OF the Congress and the country con-
tinues, with a deficit Of $4,000, 900 900
impending at the close Of the next fiscal
year under existing conditions and with
increased taxes certain to be needed.