Evening star., 1932-04-08
tunate outcome of the sterilization


ment should engage in various busi-
ness activities has been given conspicu-
Gus attention on the theory that the
amounts of money involved constitute
very large proportion Of the Federal
budget. Actually these business enter
prises are negligible part of the total
They are opposed On the other hand
by those who feel that the Govern
ment should not compete with private
interests. In this respect they become
a matter of public policy. Any Con-
gress member who attempted to repeal
the parcel post law, for example, would
not be likely to win in the next elec-
ton. The postal service is likely, on
the other hand, to be required to in
crease its rates in order to meet its
deficit.
The Federal Pay Roll.
Another place on which public dis
cussion has centered is the Federal
pay roll. This amounts to approximate
ly billion and half dollars year,
including the Army and Navy person
nel A fat 10 per cent cut would ef-
feet q saving of about $150.000. 600
which, of course would not be sufficient
to cover $4,000, 900 000-dolla deficit
but would mean a substantial economy
just the same. The difficulty about
accomplishing any fiat cut is that men,
bers CT Congress are loath to cut the
salaries of those who receive less than
$1,000 a year And the number OF
persons who receive more than 81 000
a year from the Government is rel
atively small
An investigation by the Personnel
Classification Board of the Federal
Government reveals, after an exhaus-
tive comparison between wages and
working conditions in the Government
and private employment, that First,
for positions in the clerical, admins
trative and fiscal services the Federal
pay scale below the $4,000 level is more
liberal than the average pay for SINH
lar non-Government positions and for
those above the $4,000 level it is less
private concerns to their major execu-
tives exceeds those paid by the Federal
Government to positions of similar re-
sponsibility anywhere from 100 to 500
per cent.
Some excellent work has been done
by the Personnel Classification Board
In getting at the facts with reference
to the Federal pay roll.
But the chief problem is to deter
mine first of all whether a govern
mental activity is essential and then
whether 1t can be administered more
efficiently and more economically. Many
Of the activities are begun on an expert
mental basis and there is no real ad-
ministrative check to see whether they
have accomplished their original OBJ
ject or whether they can be operated
on curtailed or more economical plan.
Constant Examination Needed.
Constant examination and re-exami-
nation Of public expenditures is essen
tial and there is no governmental
agency which carries on such work.
The Appropriations Committees of Con-
gress, of course, have hearings from
time TO time, but it is impossible for
them in a few weeks to go to the
bottom of all the expenditures The
Budget Bureau has its representative
in every governmental department but
they are not supposed to be judges of
whether the operations are desirable.
Administrative economies have made
considerable progress in recent years,
but so long as Congress designates
particular jobs that have to be done,
the bureaus and departments are
obliged to fulfill those assignments with
in the appropriations given. Too often
the tasks allocated are greater than
can possibly be accomplished with the
sums given.
The governmental establishment is
not operated like private business in
the sense that it must make a profit or
at least prove the effectiveness of every
dollar spent. Vast sums are spent for
road building and public buildings and
what might be called additions to
plant and equipment. The actual
operating costs Of Government are
bound to be higher than in private
business because the personnel in the
executive positions In Government
changes so often while the lesser
personnel are not driven either by the
incentive Of higher pay or of profit as
in private business.
Some disintereSted agency created by
Congress with power to recommend
and report upon the various operations
OF Government is ultimately going to
be necessary, though it will prove un-
popular with the governmental per-
sonnet
something of a check on govern
mental expenditures was accomplished
shortly after the budget system was in
troduced when a controller general was
appointed by Congress who could not
be removed by the executive branch of
the Government. He has held up gov
ernmental expenditures that he be-
lieved were not properly made and he
has made life miserable for many Off
cials in the executive branch of the
Government But the controller gen.
eral has no power to pass upon the
effectiveness of the expenditures, nor
hn fNfa hroF NDl,
any discretion on this matter except
the President and the department
heads
Result of Political System.
Under q political system of Govern
ment, the judgment is likely to be in
favor Of preserving existing agencies
rather than their abolition. Congress
is still wrestling with the problem of
reorganizing the Government by con-
solidation OF bureaus and departments
For 10 years this has been a moot
question, but 1t has gotten into poll
tics. Unless public opinion is aroused
sufficiently on this question, it will
continue to be political foot ball.
This is only another way of say
ing that Congress. rejecting the will
of particular groups and sections of the
country, spends the taxpayers money
for what the legislative branch of the
Government believes to be in the pub
lie interest-and when times become
hard it becomes increasingly difficult
for the legislative body to sit, in effect,
as an administrative agency and pass
judgment on what activities are in the
National interest and should be re-
tanned and what should be curtailed,
II not abolished.
(Copyrisht 1880
(Tomorrow's article will deal with
public interest In taxation)