Evening star., 1932-04-03
Declares Appropriations
Could Have Saved Firms
From Bankruptcy.
SPECIAL HOUSE ECONOMY
COMMITTEE SITS FACTS
Assistant Secretary Says Depart
nlent Is q. s. Sales Agency
for Industry.

The special Economy Committee OF
the House, seeking to find whether any
curtailment of expenditures can be
made in the United States Bureau of
Foreign and Domestic Commerce,
listened for four hours yesterday to DR..
Julius Klein, Assistant Secretary of
Commerce and former director of the
bureau. and heard him testify that ad-
oltional appropriations for domestic
commerce work would have helped to
save many small business houses from
bankruptcy.
DR.. Klein emphasized that any cut
OF 70 per cent or thereabouts would be
per1lous and foolhardy. that what Is
especially needed Is to find a wav to
sell more goods and that this bureau Is
tne Governments sales agency for in
dustry and commerce.
Closely Questioned.
He was closely questioned. especially
py Chairman McDufie and Representa-
i've douglas OF Arizona, who showed
tnaI tney rad been giving careful study
10 the work OF the Bureau. DR.. Klein.
VINO has just returned from California
and who has made a cross-continent
survey OF American business and the re-
!ated employment problems, warned
the members of the Economy Commit
tee that any impairment Of the work of
tnat particular portion Of the Govern
ment service at this time would be
especially precarious and costly. He
pointed out in detail its value to exist
ing business and its promotion.
NOW OF all times, he told the COM
L. 4
the sale OF goods The records show, he
said: that 1t has done an important
service in selling goods and In aiding
the Treasury to meet the deficit and to
nelp balance the budget through busi-
ness income tax returns.
Cuts Average 25 Per Cent.
The committee went all down the
nne In the items Of expenditure for the
Bureau OF Foreign and Domestic Com
merce. asking what the result would be
II specific cuts were made. The amount
OF the proposed cuts varied but struck
an average OF about Is per cent DR..
Klein expressed the opinion that the
appropriations for this sales agency of
the Government have been cut to the
limit. He said that the service might be
able TO survive on the appropriations
recommended by the House and Senate
Appropriations Committee, but to cut
them any more would be costly and
would impair the work.
Whatever cuts must be made in the
Government service, he advised, in order
to reduce the costs of Government
within the revenues, must be done with
discretion and foresight.
The cuts that may safely be made
must be carefully singled out-and
there should be no such thing as q
fiat per centage cut
Declares Bankruptcies CurtaiIed.
In reply to q question whether more
money could be advantageously used,
DR.. Klein reviewed the analyses made
of retail grocery independent stores, in
Florida and Kentucky. showing that as
result Of this work by the Federal
Bureau bankruptcies in both States
have been curtailed 10 to rs per cent.
If the bureau had been in a position
to apply the same system all over the
country, he told the committee, they
would have been able to save very many
small retail stores from bankruptcy.
sisted, is not an expenditure, but an
investment to prevent insolvency.
Chairman McDufie Of the Economy
Committee repeated last night that he
expects to be able to report several of
the coordination measures following the
meeting Of the committee tomorrow
afternoon. With more than so pro-
posals for consultations under consider
alton, many of which have been drafted
into bill form by the legislative coun-
Gil, not single one has yet been def
nitely decided upon, Mr.. McDuffie
stated last night.