Evening star., 1939-03-06
Brookings Report
Sees Small Savings
In Revamp Plan
Institution Sees Need
To Cut Government
Activities

In a comprehensive study on Gov
ernment reorganization published
today, DR.. Lewis Merriam and DR..
Laurence F. Schmeckebier, of
Brookings Institution, declare that
structural revamping will result in
comparatively minor economies, and
that savings large enough to play a
really important part in bringing
Government outgo down to the level
OF income can come only from elimi-
nation and curtailment OF certain
types Of activities" This step, 1t is
added. involves large issues of pub
lie policy"
The report is of particular interest
in connection with the move for
Government reorganization again
afoot in Congress.
The collaborators point out that
in the last fiscal year, the allow
ance for all administrative activities,
including administration of "emer-
gency" activities, was $1,827,3l8,O 900,
or approximately 1765 per cent of
the total budget. The remaining So,
522 100000 was appropriated for
functions and activities which ad-
ministrative reorganization would
not affect.
Various Items Listed.
This is broken down as follows:
Interest on public debt, 896 per
cent; veteran benefits, 4.79; social
security, 6.25; national defense,
l0.44; public works, 8.14; acquisition
of land for game refugees, etc, OO2:
loans, advances and grants, 2239:
work relief projects, 2077; judg-
ments, damage claims, private relief
acts, O.l8; treaty obligations, OO4
interest on trust deposits, 0O2: con-
tribution to District of Columbia,
0.05; legislative establishment, O.l2;
judicial establishment, 0.18.
In seeking the large savings from
these items, the report says, two
avenues are open. 1t adds:
"One involves subjecting all pres
ent functions and activities to a rig
orous, detailed pruning process
which involves examining the null
titudinous activities of the executive
agencies, abandoning those which are
not regarded as essential and reduc-
ing others to the necessary mini
mum. Such program means that
beneflciarieS of the National Gov
ernment who are now receiving from
1t subsidies, grants. donations, loans,
pensions and special services, and
Hirnpt 0r ito1iroct rl0vv,o ont
would find these aids curtailed or
abandoned.
The second procedure involves
the development of a more con-
Sistent social and economic program
through the re-examination of broad
policies that are now in conflict
Such major problems are involved
as the elimination of conflicting
Government price policies. encour-
agement of private enterprise sc
that economic, self sustaining en-
plOyment may be substituted fol
Government-made work and the re-
lief of employable persons. and the
development Of a healthy co-ordi-
mated and self-supporting trans
portation system. improvement in
such major matters would both re-
duce governmental expenditures and
add materially to revenues.
Overlapping Is Saving Possibility.
Reorganization merely to elimi-
nate overlapping, duplication and
conflict in the administration of ex-
isting activities unquestionably pre-
sents some possibilities for the re-
duction of expenditures. The over
whelming bulk of the administrative
expenditures is made, however, by
a relatively small number of large
agencies which do not seriously
duplicate or overlap other agencies
and would not be affected to any
appreciable extent by structural re-
organization. The 80 largest agen-
cies contain more than SO per cent
Of all the civilian employees of the
executive branch
Excess personnel does not arise
merely or even principally from du-
plication or overlapping" the re-
port contends. More important
factors are creation of unnecessary
jobs for political appointees, ap-
pointment of unqualified persons
failure to reduce staff when opera
tions permanently diminish and
failure to adopt efficient business
procedure
Civil service is the cure for this,
it adds.
The report favors the expansion
OF the Budget Bureau to serve as a
permanent co-ordinating agency un-
der the President to carry out the
reorganization program, contending
that by virtue of an old law, new
legislation would be unnecessary.
1t also proposes that the investi-
gational staff of the General Ac-
counting Office be enlarged to make
independent reports to Congress on
the economy and efficiency of the
executive branch.