Evening star., 1932-03-31

in adjusted COM
penSation for war service
In the present depression 1t has been
argued that a Federal dole to any citi-
zen is wrong and that the States and
cities should provide for those in dis
tress. But because of war tradition
the Federal Government does pay regu-
larly sums to able-bodied war veterans
and conducts the biggest welfare agency
in the world Is this an obligation
of the Federal Government or it Is
a responsibility of the States? The
latter have spent relatively small items
for soldier bonuses.
If it is agreed that this item is "un-
touchable" in the Federal budget, and
most Congress members think so be-
cause they believe the veterans or
ganizations have the power to defeat
them, then the question turns on
whether the Government spends its
dollars for the veterans efficiently.
Sentiment has much to do with the
spending of money for personal relief.
The Government is not like a private
business organization which can seek
a profit on every dollar spent. In pri-
vate welfare work, there is a constant
overhauling in order to get work done
at minimum expense.
Whether the veterans administration
is efficiently administered does not de-
pend, however on that particular bu-
reau, but upon what Congress tells that
bureau to do. Here again we have
the legislative body setting forth the
sums that shall be spent and leaving
it, of course, to an administrative bu-
reau to carry out without much dis
cretion of its own as to whether a
particular expenditure is worth while.
There are complaints from time to
time that many men who are receiv-
ing hospital care are also receiving
compensation allowances.
Congress has always felt loath to re-
duce expenses for veterans. Public opin-
ion on this subject has never crystal
lized to the point of interfering with
the gradual increase Of appropriations
for veterans purposes.
National Protection.
National protection. which includes
all Army and Navy expenses. runs now
about S700, 100000. The question Of
cutting this depends upon foreign policy,
as well as the attitude of navy leagues,
patriotic societies and others who feel
that the most important thing the
United States can do in the troubled
world is to build up her Navy to treaty
strength and to maintain SUFFICIENT
military reserve to meet all contingent
cies With Japan disregarding the Kel-
logg- BRAND treaty and embarking in
her own way in the Far East, the advo-
Gates of national defense insist that
they have been vindicated. What con-
stituJes an efficient Army or Navy, how
ever, is something else again.
Congress has given relatively little at
tention to the making of an efficient
Army or Nary with the amount of
money that has been spent from time
to time It is true more money is spent
to obtain the same results in the Amer
ican Army and Navy than in any other
military or naval establishment in the
world. This, however. is because Con-
gress insists that American soldiers and
sailors shall be better paid than those
Of other countries. Also the costs OF
subsistence are higher. If at any time
naval shore station is to be dlsmantled
there is always political pressure to
maintain it. These are the dlfhcultles
confronting any one who wishes TO cut
the military and naval budget, aSsum-
ing even that it is desirable to do so
from a foreign policy standpoint.
Economic Development.
We come then to the item of economic
development and plant equipment. This
amounts approximately to $724000, 900.
Public improvements and control OF the
public domain absorb S235 600, 900 OF
this sum. The postal service takes $780,
900 900. This is the deficit incurred IN
operating the whole postal establish
ment. Other items under the head OF
economic development include S23, ,000,-
900 for promotion of commerce and IN
dustry 100000 for air transport,
about 5000 900 900 for agriculture, $1O,-
100000 for labor and S9,000,OOO for I'M
migration and naturalization regulation,
while science and research take $23,-
100000 more.
The farm organizations have better
than a majority behind them in both
houses for agricultural appropriations:
This is another "untouchable" unless a
difference of opinion arises as to the ef-
fectiveness of an expenditure.
The test of every one of these items Is
whether they accomplish the purpose
for which they are set up and also
whether they are in the national In
terest" Nobody has defined national
interest" except the sponsors OF partlc-
ular appropriations who always feel that
whatever they propose is in the national
interest If we eliminate from the eco
nomic development classification the
plant equipment-namely, buildings and
improvements-about $500, 100000 is left.
Much of this, practically Sl50,000 000 is
due to the Post Office Department. This
means that American business and the
average citizen do not pay enough post
age or do not pay directly for the ben
efits received from the postal service
Some of the branches of the postal
service pay for themselves. But 1t all
depends on what system Of cost ac-
counting is maintained and how much
is charged to the general overhead OF
the establishment. The question OF
how much the post office system does
for American business and the develop
ment of American production and dis
tribution is an intangible which cannot
be measured except in general terms.
The gross business of the United States
runs into many, many billions Of dol
lars It could not be carried on with
out the communication service and the
only question Is whether this can be
made self-sustaining and how revenues
shall be apportioned so that it can be
put on balanced basis.
Political Pressure.
AS for the other economic develop
ment services, some of them regulatory
| and some Of them promotional. this is a
field in which re-examination Of every
expenditure can be made with profit.
This does not mean they will be made
Political pressure is behind nearly every
one of the expenditures. The average
member of Congress takes the view that
to spend s350,000 900 for economic de-
velopment, including agriculture and
other business interests of the Nation
/ is not an eXtravagant amount. Con-
yersely. he does not LOOK at the item of
welfare expenditure with any feeling