Evening star., 1932-12-01
BY KARL w. MILLER.

BY KARL w. MILLER.
One lesson to be learned by a study
Of the economy problem of the Federal
Government is the need for some
method of fixing definite responsibility
for the cost of every new unit. duty or
function which in future may be added
to the Federal machine.
In the past the Government has
found the process of growth altogether
too easy. It's growth has been con-
tinuous and almost continual since the
day 1t was founded. Appcrc-tly what
cess is new and improved budget
system
Previous articles OF this series have
present cost OF Government is bigger
than any cne seems wiling to admit
Every one, including thc responsible OF
ficials, has been shouting for more
economy, hut all have been waiting
for some oZe else to make the first ef-
fective move toward it.
Aided Duties Costly.
The reason is that the present in
creased cost of Government is due, not
so much to an increase in the cost OF
performing existing governmental
duties, as to the added duties and func-
tions that have been loaded on it from
year to year.
Except for the prospective cut in the
emergency construction program ana a
possible further cut in salaries, there
Is no room for more economy by the
simple method OF slasning appropria-
ticns. This method was followed by
the last session of Congress and it now
has the whole Government operating
on famine hasis.
Real economy from now On must
come from an actual trimming of the
size and functions OF the Government
and that is the reason why politicians
and propagandists have been so coy
in their approach to the problem. To
cut the costs further, laws must be re-
pealed and bureaus must be abolished
and every one of these laws and bu-
reaus has its friends among the pub
lie.
1t is an old story that Government
bureaus are more easily built up than
torn down. The civil bureaus of the
Government, in fact, never have been
reduced before, and there are those who
doubt that any serious reduction will
be possible now.
Under these circumstances 1t seems
pertinent to inquire into the reasons
why the Government manages to grow
30 easily.
Causes OF Growth.
Since 1922 the operating cost of its
civil branches, disregarding public
works and tax refunds, has increased
by S13o,0o0,00o. Aside from the fact
that during this period most people
were too busy with their own affairs
to bother much about the Government,
how did this increase come to pass un-
noticed?
Most of the responsibility must be
laid at the door of the system, which,
as budget system, is a farce. The
American budget in reality is nothing
more than list of proposed expendi-
lures prepared by the executive and
sent to Congress for It's guidance in
making appropriations. It helps some
what to keep down operating costs, but
helps not at all to prevent undue
growth OF the Government.
In other countries the budget sub
naitted by the executive to the legisla-
ture includes statement as to how
the necessary revenue Is to be collected.
In the American budget system the
expenditures bear only an incidental
relation to prospective revenues.
In the first nine years of the decade
Just mentioned the budget never was
balanced, even approxima tely. There
was an annual Treasury surplus, rang
ing from sl85 100000 to $636, ,0Oo, 900.
Not having to worry about expenses,
Congress rapidly increased the Gov
eminent, now yielding to the demands
Of the farmers and now to the
exuberant expansion Of the business
men.
It hardly needs mention that In the
last two years the budget has been
unbalanced in the opposite direction
with q deficit for the current fiscal
year that threatens to pass $780,
100000.
Budget Disregarded.
The second and probably most i'm
portant failure of the present budget
system is the fact that congressional
acts authorizing new activities and new
expenditures are made with no refer
ence whatever to the budget. The
Appropriations Committees Of Congress
deal only with the expenditures of the
Government as 1t now exists or in other
words, with the budget itself, and
have little or no control over the add
ing OF new governmental functions.
Authorizing acts are reported from
an entirely different set of committees
and, especially in good times, are
adopted with no thought as to the
revenues necessary to put them In ef-
fact. As soon as such acts become op-
eraSve, the expenditures they call for
in most cases are mandatory and are
included in the budget as q matter oi
course. Up until that point. when il
Reyenue Committees have had nothing
TO do with the process, except as indi-
vidual members may have risen on the
floor to make an Intellectual protest.
Recommendation Made.
The two things the present budget
system lacks, in short, are:
]. That the Executive should send te
Congress along with the budget a SET
of tax proposals calculated to raise the
amount OF the expenditures called for
no more and no less. His proposals OF
new legislation, as well. should be made
to include the new taxation they woulc
involve.
2. That every congressional enact.
ment contemplating an increase in the
scope OF the Government and author
jzing an appropriation should pas.
through the hands Of the fiscal com.
mittees and. moreover, should contain
within itself the tax provisions neces.
sary TO raise the money.
These two innovations would serve
to Ak responsibility for increases in thu
Government and continually Woulc
center public attention on the effect O
such increases on the tax burden M
expansion Of Government then could b
fostered by any special interest with
out the public being aware Of the prob
able cost.
Both Of these improvements in tn,
budget system were espoused a mum
Der of years ago by organizations seek
ing to keep down the cost OF Govern
ment, but were dropped when politi
clans and the public showed no in