Evening star., 1932-11-29
BY KARL w. MILLER.

If there is going to be any real re-
duction. in the operating cost of the
Federal Government as result Of the
national economy drive now in prog
reSs. somebody or some authority has
got to point ou. specifically the bu-
reaus, services and functions that can
be dispensed with. To date, nobody
has.
At the coming short session Of Con-
gress, there are sure to be some spec
tacular reductions of the budget for
the next fiscal year as compared with
that Of the fiscal year 1928. But
these will come mostly from the dis
continuance, or attempted discontinue
ance, Of parts of the emergency con-
struction program started in the last
two years for purposes OF unemploy-
ment relief. Such reductions will not
affect the regular operating cost OF
the Government and will fall far short
of insuring balanced budget for next
year.
$500, 100000 Saving.
Disregarding the obvious political
obstacles to any curtailment of the
construction program as long as large
unemployment continues, the utmost
practicable reduction from this source
will not exceed $500 900, 900. The
Treasury had deficit before these
expenditures began and would continue
to have one If they were wiped out
entirely, unless, Of course, commodity
prices, business volume and the ma
tional income should revive SO miracu-
lously that government revenue would
return at once to the boom-time level
Of four years ago.
Otherwise, no matter what Is done
about the emergency expenditures
the alternative of levying more taxes
or else trimming the government to
fit its reduced income. There is nc
official, high or low, who believes the
Government as 1t now stands can be
made by any process of skimping OF
saving to stay within the limits of its
present revenue.
President Hoover presumably will
broach the subject of cutting down the
Government in message on reorgani-
zation and consolidation of bureaus
which he is expected to send to Con-
gress soon after it ccxeehes. Nobody
knows what his inteuttC.s are.
Veterans Benefits Cuts Proposed.
The one specific suggestion thus far
brought forward is the demand of the
United States Chamber of Commerce
and National Economy League that
S400 900, 900 or so be cut from the
benefits now paid to veterans of the
Spanish War and the World War Such
a cut would go a long way toward bal
ancing the budget. But the President
has eaid it cannot be made With justice
to the veterans and for light on the
political practicability of a large-scale
withdrawal of veterans benefits. once
granted. the reader Is referred to the
history OF pension legislation since 1918.
In other respects. the national or
ganizations pushing Federal economy
generalities. The Chamber of Com
merce, it is true, has evolved a glib
formula, by which every department
bureau and division of the Government
simply would be returned to the level
OF expenditures 1t enjoyed in 1875,
which was the year when the total
budget was the lowest since the war
BY this method the chamber hopes to
reduce the cost of Government by more
than $3.50 000.0o0
But. like most generalities on the
subject. the idea Of turning back the
CLOCK to the Coolidge economy of 1925
Goes not mold water on examination.
1t Is true the expenditures of that wear.
less postal revenues. were only s3,529.-
$4,000. as compared with a correspond
ing figure Of s4,075, ,731 900 in the ap-
preparation acts for this year.
Relief Increases Budget.
Ii the cost OF veterans benefits is de-
Quoted in each case, however, and a re-
duction is made also for the inescapable
cost OF public debt service, the COM
paratire figures for the two years are
found to be $1,614,686, 900 and s2,o60.-
AS, 900. This latter figure. however, in
justice to the present administration,
must be reduced again by subtracting,
at the very least, the 1852, 100000 in
special appropriations for unemploy-
ment relief which fattened the budget
for the current year.
The resultant comparison Of routine
expenditures, less veterans benefits,
shows $l,6l4,68 900 for 1925 and ST.
698, ,219, 900 for 1928. In other words,
the increase in routine costs of Govern
ment between the two years has been
less than S85 1000, 900. which is not much
when you are discussing billions.
Dlmcult TASK.
No easy formula that CLOSES over the
unpleasant details is going to bring
about real reduction in the cost Of
the Federal establishment. Some au-
thority must examine the departments
and bureaus one by one and determine
which of their various functions can or
ought to be eliminated. After that, the
outcome will depend on the amount of
pressure the public exerts on Congress.
1t will be an unpleasant job for any
public man, because every Federal func-
tion was established in response to q
demand on the part Of the public or Of
some group of it, and most Of the
groups, at least, can be counted on to
fight for retention of their special ac-
tivity. When the economy battle was
on last session, the Democratic leaders
of the House did their best to force the
President to send them specific recon-
mendations for curtailment Of Govern
ment activity, knowing that, If he did.
His recommendations and the economy
bill itself as finally submitted to the
House were 80 per cent salary reduc-
ton for Government employees and 10
per cent reduction /of Government.
The only formula that can be ap-
piled to the Federal establishment with
a view to reducing its cost Is some re-
definition of the proper sphere Of the
Federal Government. Such formula
might assist in determining whether
any given function might not better be
left to the States or to private initi-
ative and whether the expense In any
event is justified under existing con-
ditions