The Washington times., 1935-01-07
SOUNDED
FOR FEDERAL
PAY GUT
President Recommends Full
Salaries July /; Casts Aside
MLiVinu Cost" Basis

ting his budget message to Con
gresS.
Recommending that the re
naming five per cent of the Gov.
ernment workers salaries be re
stored on July /, the President
cast overheard the entire scheme
Of basing salaries on the "cost OF
living"
He definitely asked Congress to
eliminate the per cent pay cut
beginning with the new fiscaI
year, July /, 1885. This will be
done merely by elimination OF
any reference to the pay cut mat
ter in any Of the appropriations
bills, since the present law dies
automatically at the end Of the
current fiscal year. His budget
Recommendation is:
"AmOng the economy pro-
visions which now obtain and
which 1t is not proposed to con-
tfnue is the 5 per cent reduc-
tiOn In compensation Of Gov
ernment employees after July l,
1888.
NO REASON NOW
II see no reason, however, for
the restoration Of this reduc-
ton prior to that date. The
index figure Of the cost of liv-
ing, on the basis Of which sal
ary restOratiOns are provided
by Section 3, Title III, Of the
economy act Of 1888, now in
dicateS that such restOratiOns
in all probability would not
even be justified on next July
/, or for some time thereafter"
The economy act calls upon the
President, during the time any
pay cut is in effect, to issue ar
Executive order every six months
declaring whether or not any
restoration shall be effected
However, it provides that before
he can order any restoration III
must determine the index figure
Of the cost of living for the pre-
vious six months and may ce
duce the percentage Of the pay
cut only according to the ratio
which the cost of living bears tc
the cost of living figure for the
Six-months period ending June
80, 1928. This was at the peak
of the prosperity era.
AS a result, the President could
not, even if he had thought il
advisable, declare at the begin
ming Of this calendar year that
salaries should be placed back or
a 100 per cent basis, as the Bu
reau of Labor Statistics reported
that the cost of living index fol
the last six months period is 1875
per cent lower than the figure
for the 1928 period.
Other Points Cited
However, in his message in
several places he makes several
points on which Congress can
base its action for immediate
restoration.
The message also is gratifying
to Government employees in that il
carries q specific recommendation
for an additional appropriation OF
$50, 1000, 900 for the Civil Service re-
tirement fund for the next fiscal
year. Concerning this the Presi
dent says:
Provision has been made in
1896 for an increase in the Civil
Service retirement and disability
fund Of $2O,OOO,OOO over 1885,
making . total annual contribu-
ton to this fund Of $4,000, 900.
This increase will enable the
Government to meet more nearly
its annual obligation with re-
Spect to this fund. 1t has been
estimated that this obligation
amounts to $4,000, 900, but such
estimate has not been Suffi-
ciently established to justify its
inclusion in the budget. An ef-
fort will be made during the
coming year, however, definitely
to establish the Governments
annual liability, the amount of
which will be included in the
1897 budget"
1885. in the determination of
compensation accruing subse.
quent to June 30, 1885, but with
out authorizing the payment of
the amount that would have
been paid during these years."
He then recommends full sal
ary restoration July l, 1895.
For tuberculosis Hospital
Appropriation of $99,5OO fol-
personal services in the District
tuberculosis Hospital is recon-
mended by the Budget Bureau
The sum Of $81,567 was appro
priated this year for this item. A
total allotment Of $167 500 tc
this hospital is recommended
This is an increase of about
$4,000 over the present appro
priation.
Forty-one new positions are
recommended for the staff OF
Gallinger Hospital. Employment
Of this additional help will serve
to lessen the growing burden OF
carrying out the functions OF
the hospital with the present
small staff. An appropriation OF
$685. Is recommended for Gal.