Evening star., 1932-08-04
FUNDS TRANSFER
RULING MAY SAVE
MANY CLERKS Jobs
MCCarI ConstrueS Provision
of Economy Act Literally to
Permit Salary Payment.
DECISION is RENDERED
AT REQUEST OF 'R00P
Elastic Section of Law Provides IL
Per Cent of Any Appropriation
Can Be Shifted.

Constituting "liberally' the provisions
of the economy act authorizing trans
fers Of appropriations within depart
ment, Controller General McCarl today
made it possible for department heads
to transfer funds for personal services
in such manner as to get maximum
benefits for payment of salaries.
The decision, rendered to Director
of the Budget j. c. Roop, it was be-
Ieved may so alleviate the appropria-
ton situation as to save many govern
ment people from additional so-called
administrative furloughs."
The "nub" of the McCarl decision
was that "the limitation on the amount
which may be expended for personal
services under a given appropriation
will be regarded as a separate appro-
nriation for personal services and may
be AUGMENTED as such by transfer to
the extent provided for under Section
BIT cot the economy act)."
Sought Elasticity.
This section of the law. as explained
by Col. Roop. was to give such elastic
ity to the 1888 appropriations as would
enable the best use possible OF the re-
. duced appropriations. Section 2l6 OF
the act, which relates to the admins
trative furloughs, is intimately involved,
and YOU will appreciate, am sure
Col, Roop. said to McCarl, that the
necessity for administrative furloughs
will be greatly extended II the hn1iVa-
tions on personal services contained III
the several appropriations are not TO
bs regarded as changed by transfers OF
snnropriations under Section BIT. This,
Of course. is aside from the fact that
in MANY cases the purpose to be &C
corplished by a transfer of approprla-
tions under Section BIT cannot be met
If the personnel limitation Is TO remain
unchanged" .5
Section BIT authorizes not to exceed
y per cent of an appropriation may
he transferred with the approval OF Ine
director of the Bureau of the BuCget,
or in the case of the War ana Nav
Departments, with the approval OF the
President, to any other approprlaCion
or appropriations under the same 9e-
partment or establishment. 1t Iurtnel
provides however, that no approprla-
ton shall be increased more than 10
per cent by such transfers.
Was Remedial Legislation.
This section of the act, McCarl fald'
IS in the nature Of remedial legislation
and was enacted for the purpose OF re,
lieving to the extent SO autnorlzeo
emergency conditions likely to arise
from reduced appropriations for the
fiscal year 1888.
This section will, therefore, be con-
Btrued literally" said McCarl, 70 ac-
complish the purposes for which en-, en-,
acted Accordingly it will be held ina
funds transferred to an appropriation
containing a limited amount Tor per-
sonal services at the seat OF govern
nent will be available for any and al
of the objects provided for by the ap-
preparation including personal services
but that no limitation in the approprl-
alton for expenditures for any partlcu-
lar purpose. including personal services
NAV be exceeded BY more than 10 pei
cent by reason of the transfer OF Such
funds. In other words. in so far as the
provisions of section 317 are concerned
fhe limitation on the amount Whlch
NAV be expended for personal services
under a given appropriation Will be re-
garded as a separate appropriation lol
personal services and may be augment,
ed as such by transfers to the eXten'
provided for under said section 3Ii