Eighth Attempt

Since the Government was put upon a budget system, there have been seven regular meetings of the Federal "business" organization -- seven meetings with the purpose of reducing Federal expenditures. Last week, President Coolidge went before an eighth meeting to urge the same object. In Continental Memorial Hall, just a block southwest of the. White House, 2,000 people assembled to hear the President and General Lord, Director of the Budget. Messrs. Mellon, Hoover, Wilbur, Work, Gore, Stone were on the platform representing the Cabinet. General Hines, Chief of Staff, and Admiral Eberle were there likewise. "The meeting of the board of directors of a corporation with 115,000,000 stockholders," as General Lord termed it, was deemed important enough to be broadcast by radio.

When Mrs. Coolidge entered the gallery, she was given an ovation. When the President entered, the band (not usually a part of the directors' meeting) struck up Lord Jeffery Amherst. The President then made his points:

P: In the fiscal year 1921, the Government spent $5,500,000,000. In the present fiscal year (1925) the expenditures are estimated as $3,534,000,000 --a reduction of $1,966,000,000.

P: In this four-year period, the public debt will have been reduced about $3,198,000,000.

P: The annual saving in interest from this four years of economy is $134,000,000--the difference between 999 to 865 million dollars.

P: In the same period Federal taxes have been reduced about $2,000,000,000.

P:The program for the next fiscal year (1926) calls for well under three billions in expenditures--an aim which will probably be achieved this year.

P:The Government payroll for 1924 was $1,680,000,000, including payments to pensioners as well as to active employes. The individual payments should not be decreased, but the number of people in the Government service must be curtailed.

P: The estimated surplus for 1926 is $373,000,000, not allowing for further economies nor for increased revenue.

P: All economies and surpluses will be applied toward decreasing the tax burden.

Said the President: "I had rather talk of saving pennies and save them than theorize in millions and save nothing. ..."

The reduction of Governmental expenditures, although always an end to be desired, cannot be carried on forever. With the growth of the country, the expenditures necessary for efficient government will rise not only in total but probably also per capita. When the time comes when expenditures can no longer be cut down, if efficiency is to be maintained, the only means of reducing taxes and balancing the budget will be by decreasing the national debt. Already the field for reducing expenditures is restricted as compared to four years ago. The kind of economies which can now be made is exemplified by three announced last week: 1) Red tape, the official tying material, is to be replaced by white string, because the latter is cheaper; 2) post-office mail bags will henceforth be made of plain gray canvas instead of white canvas with a blue stripe (the saving from this last change will be about $50,000 a year--less than one twenty-third of a cent per capita); 3) the Weather Bureau stopped sending out its daily postcards carrying forecasts--an institution dating from 1881; newspapers are said to have made the cards unnecessary.