The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-04-23
Economy Chaos


II congress and the President are going to extri-
cate themselves from what they have got into trying
to balance the budget they must promptly. WHAT
they have produced to date not economy but chaos
Mudled, hysterical partisan treatment Of this SUBJ
ject has brought to the point where essential de-
parments and the jobs OF tens Of thousands Of work.
are jeopardized while the large items Of federal
expense and waste are left virtually untouchd.
To understand this performance it is necessary to
check back.
dangerous deficit was created over two years
by refusal Of the administration to cut expenses and
raise taxes Then when the public belatedly discov-
cred the deficit the politicians got pancky.
Outcries against new taxation defeated-in the
house of OBSERVATION-DISCLOSURES to raise sufficient
enue for balancing the budget. Taxation always has
terrifying sound and great hue and cry was raised
about government economy.
Men who never have paid federal taxes, and prob
ably never will somehow were made to feel that most
of their hardship is somehow due to government ex-
travagance.
1t was determined that the annual budget must
be cut S245 100000. But where, and howe
little ess than third of the total federal
budget is spent the actual cost of operating the
government. In 1890, the last year for which an
ANALYSIS of expenditure has been made, out Of a
total expenditure Of $3,846605149 only $1274S50467
was spent for operating the government.
The rest went for interest and premium on the
public debt debt reduction pensions grants to states
public works. special business enterprises such as the
Panama canal investment in securities of the federal
land and intermediate credit banks.
When it came to economic, cuts had to be made
out of the comparatively small operating budget.
The budget bureau tried its hand at effecting
economies 1t found few to recommend, and most
of these were deferments of works. The Democratic
house appropriations committee set to work and rec
commended more cuts, ranging from to IL per cent
in the various departments
Then the senate decreed 10 per cent cuts, regard
less of what had gone before The Democratic house.
not to be outdone, agreed to accept these additional
cuts. 1t went farther and drew program of pay
cuts for federal employees President Hoover entered
with a furloughing plan proposals to cut veterans
compensation, and suggestions for bureau organiza
tion
What is the net resultP
The interior department bills, passed by both
houses and sent to the President for signature has
been ashed IS per cent under the amount being spent
this year. The budget bureau cut off some, the
house some, the senate some. Part of the cuts
sound, many cruel and foolish.
The same will be true Of the other appropriations
bills when they are ready for signature
One very high government official says that 100000
employees must be fired because of the reduced ap-
preparations. Those who will be left working harder,
working without leave, will be paid less. Many bu-
reaus of government scarcely will function
What can be done?
The President and leaders in congress should
start all again. at the beginning of this serious
economies.
They should decide first, on broad policy in
regard to federal employment-whether it is de-
srable to halt construction work and throw thou
sands into the streets. They should decide whether
savings shall be made out of the salaries of federal
employees first, only last resort; whether the
regulatory and protective services of the government
which private business interests trying to have
abolished under the guise of economy, shall be
tanned.
And then they courageously should attack the
petty extravaganza that have not been touched by
the smoke screen economy attack-the Presidents
four secretaries and their encourages the large fleet
of White House cars, expensive cars used by cabinet
members, the secretary of commences new private
elevator, and expensive rugs the entertainment
fund of foreign service men, the rent heat and light
ing allowances of employees abroad, the mileage and
franking funds of congressman
1t is expenditures such these that make the
taxpayer indignant, not the modest salaries of the
government workers.
They should demand that expensive government
bureaus performing services for special interests
charge for those services Large portions of our gov
eminent could be made self-supporting.
And most important of all, they should turn their
attention to the millions of dollars being poured into
ineffective prohibition enforcement with which the
people of this country are growingy impatient.
They should scrutinize with gravest the mill
tary services which eating up more than half of
the amount spent every year for government If the
army and navy make proportonate economies, sag
of 10 Is per cent, the interior department will not
have to take IS per cent cut.
They will be able to effect economies that will not
wreck the government, will not cause hardship or
suffering, will not impair national safety.
Assessing Work of Farm Board
Release of farm board wheat for the poor directs