1921 V. 1928

On the eve of his party's convention, Mr. Coolidge summoned the business organization of the government, sang the swansong of a prudent housekeeper. Something less than a paean, his main theme was in a major key: "I have rejoiced in keeping down the budget. Since July 1, 1921, debt reduction amounts to $6,327,000,000 ... a saving in interest of $950,000,000. . . . The tide of the good fortune . . . seems not yet to have reached its flood. We take pride in our unparalleled prosperity. In July, 1921, more than 5,700,000 people were without work . . . at the present time the number is not much more than 1,800,000. Manufacturing . . . one-third higher than in 1927. . . . Iron and steel production more than twice as large. . . . Mining industries active."

Minor keys obtruded: "States, counties, municipalities, increased their cost (1921-25) by $3,500,000,000. This steady increase in governmental cost on the part of the States and municipalities is a menace to prosperity, cannot be ignored, will not correct itself. . . . Another adverse tendency is ... speculation."

The difference between the U. S. fiscally in 1921 and fiscally in 1928 is the principal Coolidge pride, and the principal Republican point in election debate. But neither pride nor point arises from the 1928-29 estimates which were, of course, the business of this particular budget meeting.

Therefore, masterfully, the President said: "Taking into consideration the legislation enacted during the last session of the Congress, we find that for 1929 our receipts will be about $3,707,000,000 and our estimated expenditures $3,801,000,000. These estimates might seem to forecast a deficit." Insupportable thought, to be quickly dismissed by the prestige of a Presidential first person: "I do not face the coming year with any thought that we will not balance the budget. This nation is committed irrevocably to balancing the budget."

How is this to be accomplished? By strictest economy, by the tireless picking and pecking of Herbert Mayhew Lord, director of the budget. Arose, therefore, General Lord, hoarder of pennies, good storyteller. Said he: "Are we disturbed? Well, perhaps disturbed, but not discouraged. Down, but not out. We accept the challenge. . . . Expenditure will be kept inside revenue, no matter what the decrease in revenue may be." General Lord stared the deficit in the face, recalled the black days of 1919: "In certain localities it is the custom to refer to the year of the big snow or the great flood. ... I think our Treasury will always refer to 1919 as the year of the big debt and big deficit" (debt, $26,596,701,648.01; deficit, $13,370,637,568.60). But happier days are at hand: (estimated debt, June 30, 1928, $17,650,000,000; surplus, 1927, $635,809,921.70).