Evening star., 1937-09-29
BYRD MAPS DRIVE
FOR i. S. ECONOMY
Senator Says Reasonable
Cuts, Plus Lifting of Tax
Exemptions, Is Goal.
BY WILL p. KENNEDY.

W1tnln year S Time Dy making TeAS-
enable reductions in the cost of Gov
eminent, cutting out entirely un-
necessary and wasteful expenditures, "
and by broadening and equalizing the
tax base by making taxable what are
now tax-exempt securities and certain
tax-eXempt classes of Government
employes-municipal State and Fed
eral, Senator Harry F. Byrd. Demo-
crat. of Virginia said on his return to
the Capital yesterday.
The Virginia Senator is devoting
his time until Congress meets in max
ing studies looking toward drive in
the next session for economies and
efficiency in the Federal Government,
These studies include problems OF re-
organization, on which he believes a
substantial start should be made. He
is having made close analysis of the
comprehensive reports submitted to
his original reorganization committee,
which he emphasized contain very
valuable information on Government
agencies, the most complete survey
ever made for Congress"
dent Roosevelt's orders to administra-
tive officers to save 10 per cent of the
appropriations voted for the current
fiscal year. Byrd expressed the view
that the President could go much
further along this line and make an
impressive start toward balancing the
budget.
Opposes Blanket Transfers.
Such an order should be given at
the beginning Of fiscal year. the
Virginia Senator stressed. He declared
himself as firmly opposed to the prac-
tice during emergency relief days of
making wholesale and blanket trans
fers OF funds Congress voted for relief
to various departments after Congress
had carefully considered and decided
on the amount of appropriations for
those departments.
Senator Byrd pointed out that six
years ago it cost three billion dollars
to operate the Federal Government,
and now the appropriation is seven
and half billions, and that the last
appropriation bills totalled a billion
dollars more than ever before The
way to reduce expenditures, declared
Senator Byrd, lis to stop writing
checks" He believes the President has
now sufficient authority to reduce the
budget within the appropriations made
by Congress, but if any further author
ity is needed, he would be willing to
vote for such authority
Amendment Need Seen.
While constitutional amendment
tax-exempt securities. and for a Fed
eral tax on State and local employees.
he believes that as a result of extensive
hearings held in the last session, and
with the Treasury Department now
taking up that proposal, that necessary
legislation could be promptly passed.
He pointed out that the tax-exempt
securities alone are estimated at
$4,000, 100000, which should yield a
revenue of about s2,ooo.ooo0OO if
taxed. and that the tax-exempt Gov
ernment employees number about
100000
While Senator Byrd declared that to
get economies in Federal expenditures
there must be considerable reduction
m personnel, he expressed himself as
IN favor of real Civil Service, with
extension of the Civil Service under a
non- competitive but real examination,
and not by the simple say-so of an
administrative officer.
He thought that real start should
be made on reorganization of the
administrative branch Of the Govern
r1ent in the coming Congress-point-
ing out that the Presidents revamped
omnibus reorganization bill, sponsored
by Senator Byrnes of South Carolina,
chairman Of the Joint Reorganiza ton
Committee, is now on the Senate
calendar. He said, however, that he
felt sure that reorganization could
not come through passage of one bill,
but should be taken piecemeal, each
measure specifying just what agencies
would be abolished and how others
would be regrouped and co-ordinated,
instead of through blanket authority
to the President.
To Summon Committee
Senator Byrd intends to call meet
ing OF his Reorganization Committee
in December and in the meantime is
having a summary prepared of what
he considers the practical steps for
reorganization in the interest of econ
omy and efficiency after a careful
study Of the Brookings Institution re-
ports.
The start should, of course. be
made In disposing of the so-called
emergency agencies" said Senator
Byrd, 80 as to see just what perma-
nent agencies are to be considered in
the reorganization. revamping, re-
grouping and coordination process
He suggested that the start might
we'll be made and promptly on the
emergency fiscal and housing agencies
As previously outlined in bill he in
troduced, and statement issued by
him in the last session.
His man objective in the coming
session, the Senator said, will be fol
practical economies and efficiency, tt
reduce the cost Of government perma.
nently, making way for a continuingly
balanced budget, because this Govern.
" ment cannot afford to continue multi.
plying its budget above what is was ir
the peak period OF prosperity