Evening star., 1933-05-14
FOREIGN SERVICE RESERVATIONS
FOLLOW DRASTIC INCOME CUTS
Small Salaried u. S. Officers Are Unable to
Make Both Ends Meet, Due to
Economy Sacrifices.
BY NELSON M. SHEPARD.

BY NELSON M. SHEPARD.
designations Of Foreign Service off,
GERS whose incomes have shrunk as
much as 40 per cent under existing
Federal economies are beginning to
filter into the State Department as a
result Of the deprecated American dol
| lar abroad and new administration de-
mands for more economy sacrifices
next year.
Secretary Cordell Hull's recent ap-
peal to the loyalty of Foreign Service
officers in reminding them that they
face "exacting, testing years" In the
struggle to win back for the Nation
some sort Of sane economic comfort, !"
served to focus attention on q coadi-
ton in the State Department which
Is said to have hardly a counterpart t
in the whole Federal service. Slashes
yet to be worked out under the auto
matte 10 per cent reduction In its 1884
appropriation only give additional en-
phasis to the demorali1ng effects OF
economies now being applied.
With State Department expendi-
lures amounting to mere pittance in
the sum total for the Federal Govern
ment-actually a quarter OF cent OF
each dollar expended-onctals view
with dismay and bewilderment the
prospects Of further reductions on the
morale and efficiency Of the service.
Compelled to cut deeper into its funds
Of little more than $4,000, 900 for the
new fiscal year. on the one hand. the
department personnel must respond un-
failingly to the increased activities in
the role the administration is mapping
out for 1t in the war for international
recovery from the depression.
Costs Exceeding Incomes.
Now comes the deprecated value
Of the dollar, officials remind, to
harass small salaried officers abroad.
Each week since the United States
went off the gold standard has added
to the mounting living costs OF dlplo-
matte and consular officers In those
countries where the exchange rate on
the dollar has gradually declined until
now it is about 80 cents In value. The
fact that vice consuls and other salary
dependent officers are beginning to
send in their designations since the dol
lar began to fall has caused no sur
prise in Washington. The reason Is
due simply to the fact that actual living
costs are steadily exceeding incomes
Only the foreign service ofncer with
sufficient Independent means can con-
tinue to stand the gaff.
The first designations for these rea-
sons, three in number, were reported
last week. Even an improvement In
the exchange rate Is hardly expected tc
stay further designations Of small-sal.
aried but nevertheless valued employees
who are Of necessity being driven out OF
the service. Omcials here do not dis.
guise their anxiety over the situation.
The plight of these foreign service
officers, as a result of salary and al
| lowance reductions, was summarized by
Wilbur j. Carr, Assistant Secretary oi
State in his testimony before the House
committee at hearings on the present
appropriation bill.
Pay and Allowances Cut.
Under the economy act the foreign
service officer lost a months pay ano
now he loses Is per cent of his basic
salary. He has lost all rights to promo
tions and the automatic increase o1
| 500 a year. In the present fiscal yeal
ending June 80 he lost 40 per cent oi
his allowance for rent, fuel and light
The 1884 fiscal year will see this allow
ance reduced by go per cent.
The usual post allowance, designed
to enable the foreign service officer tt
meet excessive living costs, has beer
eliminated. It has been wiped out alst
for next year.
On top of these reductions in IN
come, the reduced buying power Of the
American dollar abroad has added 9
problem which has become an unbear.
able burden to many officers abroad.
In actual dollars, the results Of these
various economies are revealed In the
present incomes of vice consuls who are
expected to undergo still further reduc-
tions when the 10 per cent slash Is ap.
piled after June 80. In 1882 q vict
consul received an average income oi
$3,647. including all allowances. Since
then they have sustained q total reduc.
ton estimated at $1,508 or approx.
mately Al per cent. At the time thi!
figure was computed, it took into ac'
count depreciation Of IA per cent IL
the exchange rate Of the dollar. Nov
it Is about II per cent.
Now Gets Only $2,139.
Out of his former income the vic'
consul, who Is usually dependent OF
his Government pay, is now receiving
only $2,139 a year. If misfortune ha!
stationed him in Australia or some othel
equally expensive post, he Is compelled
to pay at least $3.50 q month for suit
able quarters. That is the minimum
rate for q small apartment or bungalow
quoted, for example, In the rental list!
Just received at the State Department
from Aukland, New Zealand.
1 I.t- Id IL
would exceed his income. This may bt
an extreme case. but actual living costs
in many quarters of the globe, along
with the enforced official entertainment
which cannot be avoided, frequently
and usually does run the average vict
consul or attache deeper and deeper
in debt
| Department officials are now workine
out the details of the 10 per cent auto.
matte reduction in the appropriation to,
the 1884 fiscal year. In other depart.
ments q 10 per cent reduction mean!
just what 1t says. With the State De
partment 1t has an altogether different
meaning. It actually calls for SLASH
approaching 30 per cent in the item.
which can be reduced legally.
This is due to the fact that approx
mately II per cent of the small amoun
| for the entire department, at home ant
abroad, is involved in what is com
monty known as fixed charges"
|. Some Items Can't Be Cut
These fixed charges" include amoni
other items, international obligation
Of the United States under treaties will
foreign countries, amounting to $1,000.
826, or TT per cent of the whole ap
preparation. These, Of course, canno
be reduced. For instance, the Unitel
States Is bound to contribute 500, 900 I
year under the international bouudar,