Evening star., 1933-01-22
ECONOMY DEBATE
IS DUE THIS WEEK
Senate Fight Is Probable
Over ! 2-3 Per Cent Pay
Cut Addition.
BY ]. A. O'IEARY.

BY J. A. OLEARY.
With q fight looming over the rec
ommendation for an additional pay cut
Of 12-3 per cent on Government sal
aries, the general economy program at
| tached to the Treasury-Post Office ap-
| preparation bill may be taken up 70,
debate in the Senate this week, pos
| sibly by Wednesday.
The decision on the new salary pro-
posal is expected to be close. 1t was
reported from reliable sources at the
| Capitol yesterday that, as the situation
| now stands, the additional pay cut may
| not get through the Senate, but the
| final outcome cannot be predicted def
nitely in advance Of consideration OF
| the bill. But If 1t should muster q
majority in the Senate it would still
| have to go to conference, since 1t was
not in the House bill.
Continues Existing Plan.
The House, in passing the economy
| measure, voted to continue the existing
furlough plan, which amounts to an
8 1-3 per cent cut, for another fiscal
year. The Senate Economy Committee
added to this furlough reduction the
fiat percentage cut, which would make
total slash of 10 per cent. The Ap-
propriations Committee concurred in
! this recommendation of the economy
group. If the Senate should turn down
the new cut the Government salary
situation would remain as 1t Is for an
other year.
The prediction of Senators yester-
day that consideration Of the economy
program would start before the end Of
this week was based on the ASSUMPTION
that the Glass banking bill would be
disposed Of within few more days.
While the economy measure has been
on a sidetrack waiting for a chance to
come before the Senate, representatives
OF various groups of Federal workers,
supported by organized labor generally,
have been urging the Senate not to
make another pay cut in the Govern
ment service. They have argued that
further curtailment of the purchasing
power OF wage earners would be a step
away from economic recovery.
The pay cut proposal has claimed
most OF the attention in advance dis
cussions Of the economy measure, but
1t Is by no means the only provision
that is expected to lead to debate In
the Senate.
Record Change Urged.
Another provision which has led to
considerable discussion Is the recon-
mendation Of the committee for repeal
Of laws and regulations under which
the Civil Service Commission keeps
personnel records of the emnloves of
the executive departments and inde-
pendent establishments. The commit
tee recommends that these records be
kept by the departments, and made
available there to the Civil Service
Commission and to the Veterans Ad-
ministration in handling retirement
matters.
Consideration of the economy bill
also may open up debate on the trou-
blesome question of reorganization Of
the Government departments, since the
measure recommends broadening the
reorganization powers of the President
IN two essential particulars.
Under existing law, the President may
issue executive orders for the transfer
and consolidation Of bureaus, such Or
ders to be reported to Congress, where
d1sapproval by one branch-either
House or Senate, within 60 days-is
sufficient to veto the order. The pend
Ing economy bill would enable the
President to issue orders to abolish as
well as to transfer bureaus, and a reso-
luton Of disapproval would have to pass
both branches of Congress, instead of
one, within so days.
Pension Cut Proposed.
Another recommendation in the pend
ing bill Is that q 10 per cent cut be
made in pensions on the rolls of the
Veterans Administration and in COM
pensation payments under the war risk
insurance act, the World War veterans
act or any special act of Congress, If
such pension or compensation is at a
rate in excess of 81 900 year. It is
1urther provided, however, that this
section shall not operate to reduce any
such pension or compensation to less
than $1,000 year. This recommenda-
tfon is estimated to save the Govern
ment $8570,0O0.
The proposed new pay cut on Gov
ernment salaries it Is estimated would
amount to $15,000,000, in addition to
the saving accruing to the Government
from the 81a per cent payless furloughs.
There are various other economies in
the pending bill. The bill as q whole.
IL is estimated, would save between
$35, 900, 900 and $4,000, 900, over and
above the present economy law.
Tydings Awaits Chance.
While the Senate awaits an orpor-
tunity to begin work on the Treasury
Post Office bill, Senator Tydings, Demo-
crat, of Maryland. also Is waiting for
a chance to bring to the attention Of
the Senate the drastic resolution he
introduced week ago, by which he
seeks to direct the Appropriations Com
mittee to cut the total of all the sup
ply bills to $2.949, ,100,0 900, which, he
says, is the estimated Federal revenue
for next year. According to the Mary
land Senator's figures, this would mean
cutting approximately $492. .000, 900 BE-
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