MAKING A BUDGET THE AMERICAN METHOD APPEAL TO PEOPLE FINAL APPEALS

Evening Post, Volume CXX, Issue 116, 12 November 1935, Page 11

MAKING A BUDGET

THE AMERICAN METHOD

APPEAL TO PEOPLE

FINAL APPEALS

AN ENORMOUS UNDERTAKING

THOUSAND WORKERS

The Government Budget for the fiscal year ending June 30, 1937, is in preparation. Prospective income •" is being forecast; expenditures are being planned. More than 1000 persons —Government administrators, economists, accountants, printers, binders, and other craftsmen—will work on the Budget until the President delivers it to Congress next January, wrote Frank George from Washington to the "New York Times" at the end of September. For two months the Budget officials in the executive departments and other Government agencies have been conferring with bureau and division chiefs to determine what appropriations shall be requested of the Budget Bureau. This bureau has begun oral hearings on the Estimates; from now until December there will be hearings covering the ten major departments with their 100 or more bureaux, the many independent agencies of Government, and nineteen emergency agencies created during the Roosevelt administration. The Budget Bureau is authorised "to assemble, correlate, revise, reduce, or increase the estimates of the several (Government) departments and establishments." In practice the administrative heads of Government have found it mainly a "reducing" agency. It is responsible only to the President—his barrier against; pressure {or Government expansion. FIRST. DIVISION. The President having made known to the Director of the Budget his wishes as to Government economy next year, the chief task is to apportion the proposed sums among the various Government organisations. Budget Bureau officials say that no instructions for curtailment of appropriations have been sent to the departmental fiscal agents; nevertheless there is a general undercurrent in Washington that 1936 is to see the beginning of an "economy cycle" in Government. Budget Bureau officials say it is "fairly easy" to estimate prospective, Government income. The more conservatiye they are in doing so the more likely the pleasant surprise of a i surplus. In the fiscal year ended June 30, 1935, actual income was 90,000,000 dollars (£18,000,000) more than estimated income. The bureau has been often accused of purposely holding down its income estimates so as to restrain Congress from appropriating too much money for the ordinary activities of government. In estimating income the bureau has the help of Government statisticians and economists whose job it is to keep informed of the nation's economic condition. It is aided also by the Government's revenue-collecting agencies, which are expected to estimate the probable amounts of corporation and income taxes, capital stock taxes, estate taxes, liquor taxes, cigarette taxes, gasoline taxes, and other items that make up the Government's income. . BUREAU FORECAST. The Budget Bureau has forecast already the probable income ;in 1936, but this is subject to such revision from time to time as may be dictated by cumulative economic recovery. The final estimate ol income for the fiscal year that begins on July 1, 1936, will be prepared in December and checked against independent Treasury Department estimates for inclusion in the President's Budget message to Congress. Estimating expenses the bureau finds more difficult, but mainly as to their apportionment, since the total has already been teatatively fixed. Nevertheless, the bureau is urged upon every side—by private individuals and organisations whose business will benefit from enlarged Government science and economic research, by Government administrators who wish to do this research, and by State representatives seeking local grants—to recommend to Congress expansion in the Federal Government. The bureau replies that in recommending appropriations to Congress it is limited to activities already authorised by Congress. Any major additions or reductions are usually contained in the President's message that accompanies the statistical • material in the Budget. This year, instead of seeking additional funds, the chiefs of executive bureaux are concentrating upon having continued the research service and science work they are now doing. AT THE HEARINGS. There are present at the Budget Bureau hearings the departmental j budget officials and bureau chiefs on the one side and a committee of the Budget Bureau on the other. The latter is comprised of the director or the assistant director, two assistants to the director, and an investigator—the last three possessed of intimate, detailed knowledge of the Government activities under discussion. The subject matter on agriculture at these hearings ranges from baiting beetles to windrowing wheat; on commerce, from promoting foreign trade in Africa to testing the strength of steel rails; on labour, from child employment to strike conciliation; on interior affairs, from governing Indians to reclaiming deserts; on finance, from gathering farm processing taxes to collecting liquor levies; on national defence, from aviators' uniforms to the compounding of warfare chemicals. Hearings on appropriations for a major department, such as the Department of Agriculture, sometimes last two weeks. In the discussions the Budget Bureau considers the appropriations requested for each item against the record of actual expenses in the preceding fiscal year and the sums already granted by Congress for the current fiscal year. This year it will consider also the requests for next year against a background of nearly three years of investigation by special Presidential committees which have been critically studying the activities of government with a view to suggesting consolidations and eliminations; and its own long-time studies of Government work. After the hearings arc completed in December, the Budget manuscript goes to the Government Printing Office. The index of a typical Budget lists more than 4000 subjects, beginning with Acadia National Park and ending with zoological activities in the District of Columbia. To print the 800----page document costs more than 25,000 dollars (£5000). The cost in salaries of departmental budget officials and their statistical and clerical aides in the more than 125 bureaux, boards, commissions, and other Government agencies has never been estimated. The annual appropriation for the Budget Bureau alone, with its thirtyeight employees, is £32,000.

At the last moment the President's narrative message to Congress is inserted in the Budget, but the administrative heads of departments, bureaux, and other agencies are not yet through. They must appear later at appropriations hearings in both House and Senate and there repeat the reasons why they want the moneys approved by the Budget Bureau. They are pro-

RE-ARMAMENT ISSUE

THE BRITISH ELECTIONS

CHANCELLOR'S "WARNING

(From "The Post's" Representative.) LONDON, October 19. It was arranged months ago, and before the present international complications, that the Government should ask for a new mandate early in 1936. The reported decision to hold a General Election in November, even though it is only two or three months earlier than originally arranged, has caused some consternation in the Opposition ranks. When the Socialist Party declared so strongly in favour of sanctions against Fascist Italy, even to the extent of military sanctions, they cut away the strongest plank they had for their election campaign. In spite of this, however, they apparently intend to pin their faith to unilateral disarmament, even though the Government has declared tnat it must have the public behind it in bringing our armaments up to a safe level. The Socialists apparently know, the weakness of their' cause, hence the consternation regarding the near approach of a General Election. At a Labour rally this week, Mr. Attlee, the new Parliamentary leader of the party, indicated the path the Labour candidates should take. "It may be," he sal, "that this Government, which failed to support the efforts which were made to get disarmament at the Disarmament Conference, may come out now as the champions of peace and ask you to I support re-armament. | "I hope that you have traced the transition from 1931, when Arthur Henderson was Foreign Minister and when the world talked of peace and disarmament, right down to the present day, when the world is talking about war and re-armament. I hope that you will point out how this Government, which as events just now have shown, can command a lead in the world, gave away the moral leadership of the world established by the Labour Party. That leadership has been frittered away by the clever sidestepping of a lawyer, by the dodging of every kind of responsibility, by allowing every believer in force to get away with it. "The Government will ask for rearmament because it wants to preserve peace. Don't believe it. You will not get peace by piling up huge armaments." It is doubtful if such sophistry will influence even the most ignorant of the electors after the bellicose attitude of 'the party conference regarding sanctions. MR. CHAMBERLAIN'S STATEMENT. ' j Mr. Chamberlain, the Chancellor of the Exchequer, has dealt with the suggestion that the election should be postponed until the spring, when the present crisis would have passed away. "Do not make any mistake," he de*.' ciared. . "We are not at the end, we are at the beginning of what may be a very long period of difficulty, doubt, and anxiety, during which there may be recurring crises of a most serious character. "When you are facing such a position as that, it seems to me it is essential that the Government of the i country should be clothed with unquestionable authority, and should be assured of sufficient stability tenure to be able to carry out its policy to the end." The issues at Geneva, the Chancellor continued, were so big and so overwhelming that they had broken down many traditional prejudices and instincts, and had brought about some strange and unexpected combinations. Conservatives, the T.U.C., Churchmen, Nonconformists, Roman Catholics, Atheists, women and children, and even the Socialist Party— or at least the greater part of it—were all in the sanctions boat. "If you look overboard you can see some heads bobbing about ir» the water, and among them that of the late head' of the Socialist .Party. (Laughter.) And now a new commander, who has been rather contemptuously told to carry on until the crew can find somebody better, does not seem altogether happy about his position. "I gather that he supports the policy of sanctions, but proposes to throw every obstacle in the way of the I Government that is trying to carry them out. I should watch Mr. Attlee very closely during the next few months. He has always been a very great supporter of the League! He has frequently urged that the sanctions of the League-must be upheld, even at the cost of using force. It should be interesting to see how far he thinks it is necessary to sacrifice these convictions to keep his hold on the very precarious position which he occupies at the present." NECESSITY FOR ELECTION. "Surely," said Mr. Chamberlain, "it is a new doctrine that when a Government is choosing its time for a General Election it should pick out that particular moment most favourable to its opponents." In addition to its policy at Geneva, the 'Go-ornment must know the mind of tr.- country on the question of defence. It had decided that we could wait no longer for other nations to disarm. We must repair the waste and deficiencies in our defences. "I am not sure," he declared, "that this trouble we have been having for the past two or tV.ree months would ever have occurred if this country's defence forces had been stronger. "We must carry out that programme i much shorter time than we have contemplated. Every item will be scrutinised by the Treasury before it is proceeded with, to make sure that there is neither waste nor undue profits for the contractor. "We do not want these forces for aggression. We do not intend to go any further than the absolute minimum which is necessary for our purpose. We shall not relax our efforts to try to obtain some general agreement on disarmament."

hibited at these hearings from asking! for more money than has been recom-! mended by the President. Congress can increase the Budget Bureau's proposed appropriations, but Government records for (he past fourteen years show that Congress frequently has reduced' thorn instead. Often the House Appropriations Committee lias so acted, and, although the House, and the Senate, later replaced ] some cuts, many final bills have been less than the Budget Bureau totals.

The Infernntlonnt cable news appearing in 'his issue Is published b.v arrangement with '.he Australian Tress Association and tbo "Sun." "Ueraid." News Office Limited.

BRITISH ELECTIONS

MINISTERS' SPEECHES DISTURBED MEETINGS United Press Association—By Electric Telegraph—Copyright. (Received November 12, 12.30 p.m.) LONDON, November 11. The Prime Minister, Mr. Stanley Baldwin, will make his last election speech at Newcastle tomorrow. Most of the other members of Cabinet are making final appeals. Mr. J. S. Crooke (Conservative) has cancelled all his meetings in the Deritend division, Birmingham, because his opponents refuse him a hearing. His Labour opponent. Mr. F. Longden, declares that this is a political stunt. The Labour candidate at Wakefield, Mr. A. Greenwood, said that the disturbances were regrettable, but they were due largely to deliberate provocation, ignorance, or lack of tact. UNRULY MEETING AT MILE END. A meeting of the Conservative, Dr. O'Donovan, at' Mile End, was broken up, allegedly by 150 Communists, yelling slogans. They eventually rushed the platform, used chairs as missiles, and kicked and scratched supporters protecting Dr. O'Donovan. They made an effort to tear a fur coat off a woman, and attacked stewards carrying out Mrs. O'Donovan, who fainted. The "Daily Telegraph" expresses the opinion that Labourites will receive a shock from London electorates. They are boasting that they will recover ID seats lost in 1931, but Conservatives believe that the Labourites are oversanguine, and hope to hold several seats, including Mile End, owing to the popularity of Dr. O'Donovan due to his excellent work at hospitals. Conservatives believe the seat of Major Attlee, Leader of the Labour Party, is endangered. The total voters in all electorates are 31,305,527, of whom 16,525,246 arc women. The total electorate is 1,345,456 above that of 1931. MIRACLE NEEDED RAMSAY WIACDONALD'S SEAT ODDS AGAINST HIM (Received November 12, 9 a.m.) LONDON, November 11. The "Manchester Guardian's" special correspondent accompanying Mr. Ramsay Mac Donald in the Seaham campaign says it will be a miracle if Mr. Mac Donald holds his seat. Some tipsters give Mr. Shinwell a majority of 10,000, but more cautious Labour estimates are that it will be 3000.