Evening star., 1932-11-30
BY KARL w. MILLER.

By hAhL w. MILLER.
In a previous article of this series /
was shown that any real hope of bal
ancing the Federal budget through
economies, instead of increased taxa
ton, lies with an actual reduction o
the scope and functions of the Fedora
Government.
| The point was made that no advo
| cate of economy, in the Government
or out of it, thus far has dared to en-
visage this fact or undertaken to desig
nate the specific bureaus, divisions ol
functions of the Government thai
might be eliminated.
In this article an effort will bt
made to show how drastic the re.
trenchment of the Federal establish.
Is made to fit 1t within the limits of it.
present reduced income
No mere trimming around the edge.
will suffice. Neither would any mere
reorganization to eliminate scattered
Implications Of effort produce tht
necessary savings 1t could be &C.
complished only by sweeping revalua.
tion and pruning of Federal activities
And this would have cut so deep that
1t probably would take a non-partisar
commission to make the survey and 6
special session of Congress to enact
the needed legislation.
Routine Cut to Bone.
1t has been shown there is little
room for further reductions in the
routine cost OF the existing civil ma
chinery of the Government without i'm
pairing its efficiency. In the military
section, the huge cost OF veterans bene-
&c ie otf ht,t IND a.
Gated the utmost reduction possible
tical politics will fall far short OF
wiping out the prospective Treasury
deficit. Finally, the Army and Navy
apparently are placed beyond the reach
of the economy drive by the statement
of President Hoover that national de-
ferse cannot be reduced with safety
until other governments agree to dc
likewise.
1t follows that most OF the economies
needed to balance the budget must be
taken from the civil activities of the
Government, and these economies can
be achieved, as stated, only by sweep
ing revision of existing Federal laws
and functions.
Fropagandists for Federal economy
have made the mistake of oversimpli-
flying the problem They have made it
look easy to reduce Federal costs,
which isn't hard to do. in the face OF
that fact that the Governments $780,
100000 outlay of 1913 has mushroomed
to the $4,000, 100000 figure of the cur
rent fiscal year.
Every one has heard the story of the
Government bulletin on the love life
Of the frog It readily is assumed that
most of the billions spent by the Gov
ernment are frittered away by idle bu-
reaucratj and that Federal economy
can be had with no more trouble than
a little lue-penciling of the budget.
Analysis Made.
Actually, however, no real and per-
mansnt economies can be achieved out
tide the military budget without cutting
away many activities that many peo-
pie believe essential. The drastic ma
ture of the amputations necessary to
produce economies on the scale de-
manded can be indicated by brief an
alysis of the appropriations for this
fiscal year. This will show the scope
of the expenditures from which the
hopsd-for savings must be drawn.
T3l, 900 must be deducted, In the first
place, the permanent and indefinite"
appropriations, including public debt
service, which cannot be reduced.
These amount to sl.285, 900, 900. De-
duct also that 1852 ,224, 900 spent this
year for emergency construction work
and for Red Cross wheat. These are
not part Of the routine cost of Gov
eminent. Again, deduct the $948,-
799, 900 Of expenditures by the veterans
administration, which have been dealt
with elsewhere. Deduct also the $780,
o0o,oo of Federal aid appropriations
which, after all, are spent by the States
and not by the Federal Government
and will be treated later Deduct also
the S39, ,498, 900 that is paid by the Dis
trict of Columbia in local taxes toward
the cost Of its own government. And
deduct, finally, the $s34,646,ooo that
goes for support Of the Army and Navy.
The resultant figure, representing all
routine costs of the civil branches for
the Government, is $645, ,564 900, which
is not very big as governments 60 1t
Is, for example, scarcely 100000, 900
more than the average annual budget
of the City of New York.
Costs High.
Out Of this sum are paid the costs
Of Congress, the executive Offices, the
Federal judiciary, collection of taxes
and customs duties, foreign relations,
law enforcement Of all sorts, supervis-
ion of immigration and naturalization
regulation of the railroads and OF ship
ping, power companies and business
generally, the operating deficit of the
postal service, all ordinary river and
harbor improvements and their main
tenance, food control works, steamboat
inspection, maintenance of lighthouses
and air navigation facilities, and all
the other functions customarily re-
garded as included within the normal
and necessary sphere Of the Federal
Government.
Out of this sum also must come the
economies. From that standpoint a.
well, 1t is not very big sum For al
least one-quarter billion dollars must
be squeezed out of 1t to come anywhere
near to meeting the Treasury deficit
The reader should be warned at thi,
point that the budget to be submitted
to Congress next month will contain
some spectacular reductions below thu
appropriations for this fiscal year
President Hoover has promised a GU
of not less than $500 600, 900. But thi
| cut, 1t is certain, will have to com,
mostly from discontinuance Of the spe
/
an enlarged public construction pro
gram in the interest or unemployment
relief
However big the executive cut ma
be, 1t cannot furnish the answer to tn
problem OF the deficit, which is esti
mated TO reach a total by June 80 o
81, 500, 100000, or even $2,00o,0 900 ,00(
The balance of the economies needed t
forestall heavy tax increase mus
come from the veterans and from tn
civil branches OF the Government.
New Functions.
1t is notorious that In the last 10 o
IS years, and especially in the periot
Of prosperity and easy revenues, tn
Federal Government took over variet.
Of functions that had not been previ
ously on its accustomed beat 1t triet
to help the farmer and the busines
man. and even began to advise tn
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