Evening star., 1939-04-25

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in the Federal Loan Agency are
the Reconstruction Finance Corp.
the Electric Home and Farm
Authority, the Federal Home
Loan Bank Board, the Federal
Housing Administration and
their associated agencies and
boards, as well as the Export
Import Bank of Washington.
Since 1916 the Congress has
established from time to time
agencies for providing loans, di-
rectly or indirectly, for the stim-
ulation and stabilization of agri-
culture, and such agencies should
in my opinion be grouped with
the other agricultural activities
OF the Government. For that
reason find it necessary and de-
sirable to accomplish the pur-
poses of the act to transfer the
Farm Credit Administration,
the Federal Farm Mortgage
Corp. and the Commodity Credit
Corp. and associated agencies to
the Department of Agriculture.
Economy and Efficiency.
One of the five purposes of the
Reorganization Act of 1899 is
TO reduce expenditures to the
fullest extent consistent with the
efficient operation of the Gov
ernment." This purpose is i'm
portant in each phase of the
plan here presented. The Re-
organization Act prohibits abol-
lShlng functions-in other words
basic services or activities per-
formed. Therefore the reduction
in expenditures to be effected
must necessarily be brought about
CHIEFLY In the overhead admins
tratlve expenses of the agencies
set up to perform certain func-
tlons. The chance for economy
arises therefore not from STOP
ping work, but from organizing
the work and the overhead more
efflclently in combination with
other similar activities. Only the
Congress can abolish or curtail
functions now provided by law.
The overhead administrative
costs Of all the agencies affected
IN reorganization plan No. ! is
about $235,000.000. This does not
include the loans they make, the
benefits they pay, the wages of
the unemployed who have been
given jobs; it does not include
the loans and grants to States or,
IN short, the functional expense.
II does include the overhead ex-
pense OF operating and admins
tering all these agencies.
The reduction of administrative
expenditures which it is probable
Will be brought about by the TAX
ing effect of the reorganizations
specified in the plan is estimated
as nearly as may be at between
s15,000,000 and s20,OO0,0 900 annu-
ally, substantial lowering of the
existing overhead.
Certain of these economies can
be brought about almost imme-
dlately, others will require a
palnstaklng and gradual read
Justment in the machinery and
business practices of the Gov
ernment.
Any such estimate is incom-
plete, however, without reference
to the corresponding savings
which will follow in the States
and cities through the recon-
mended consolidation of the Fed
eral services with which they CO.
operate. and the improved ef-
cheney and convenience which will
be felt by citizens all over the
Nation, many of whom will be
able to find in a single office manv
OF the services now scattered in
several places. These economies
will undoubtedly exceed the di-
rect savings in the Federal bud
get.
1t will not be necessary to ask
the Congress for any additional
appropriations for the admins
trative expenses of the three con-
solldated agencies set up in this
plan, since their costs will be met
from funds now available for the
administrative expenses of their
component units. Actually new
expenses will be only fractional
part OF the expected savings.
Neither on this reorganization
plan No. l nor on future reor-
ganization plans, covering interde-
partmental changes and intra-
departmental changes, will every
person agree on each and every
detail. 1t is true that out of the
many groupings and regroupings
proposed in this message a few of
the individual agencies could
conceivably be placed elsewhere.
Nevertheless, I have been seek
ing to consider the functional
origin and purpose of each agency
as required by the reorganization
bill itself.
If in the future experience
shows that one or two of them
should be regrouped, it will be
wholly possible for the President
and the Congress to make the
change.
The plan presented herewith
represents two years of study.
1t is a simple and easily under
stood plan. 1t conforms to meth
ods of executive administration
used by large private enterprises
which are engaged in many lines
of production. Finally, 1t will
save a sum of money large in
comparison with the existing
overhead of the agencies in
volved.
1 trust, therefore. that the Con-
gress will view the plan as a
whole and make 1t possible to
take the first step in improving
the executive administration Of
the Government Of the United
States.
FRANKLIN D. ROOSEVELT.
expended balances Of appropria-
tions, allocations, or other funds
transferred hv this section shall