Eighth Budget

President Coolidge sent to Congress his sixth and last annual Budget message. Budgeting the U. S. began only two years before he became President, so he felt justified in reviewing the system's success as part of the Coolidge Era.

"Our splendid Treasury." he said, to remind people why the Budget Bureau was established, "is not a bottomless, automatically replenishing fountain of fiscal supply, and its outflow must be eternally watched and carefully and wisely directed into proper channels."

The first seven Budgets, for the years 1923 to 1929 inclusive, called for a total of $29,800,233,790 to run all branches of the Government. The Congresses appropriated $29,478,282.294, cutting the Budget Bureau's estimates by only $321,951,495, or 1.16% of the total. Of this amount, $135,468,732 was saved by the Naval Disarmament Conference, from the Budget for 1923. Since 1923, the Congresses have appropriated only $55,971,630 less than the Budget Bureau's estimates, or a margin of faultfinding and disagreement of less than .2%. President Coolidge declared himself most gratified by such "hearty co-operation."

A fiscal year for the U. S. begins July i of the previous calendar year, and ends June 30. Fiscal 1929 is thus about half run. Costs of running the country, including debt reductions and meeting deficits of the theoretically self-supporting Post Office Department, have been and will be as follows: Fiscal 1928 $3,643,519,875.13 (actual)

" 1929 3,794,745,469.00 (appropriated and estimated)

" 1930 3,780,719,647.00 (estimated)

Of the figure for 1929, $3,637,079,024.09 had already been appropriated and President Coolidge was emphatic in warning Congress to be prudent this session, not to vote any extra money without providing new sources of revenue.

Last summer, not a little political capital was made--by Republicans as a warning against change, by Democrats as evidence of bad stewardship--out of a report from the Budget Bureau that fiscal 1929 might show a deficit of 94 millions. President Coolidge now announced that the outlook was for a surplus of some 37 millions. Neither of these figures is very near the $252,540,283 surplus which was estimated for 1929 in the President's Budget message last December. Last week the President explained that the discrepancy was due rather to increased expenditures than to decreased revenues. The postal deficit was 60 millions greater than expected. Flood control added 16 millions, public buildings 26 millions, pension increases n millions, increased pay for Federal employes 21 millions, Navy and Shipping Board increases 26 millions, etc., etc.

For 1930, the President announced an estimate of a $60,000,000 surplus of revenues over expenditures. The Treasury expects its total receipts for the year to increase about 10 millions over 1929, whereas the Government's total expenditures are figured at 14 millions below 1929. One large item helping this decrease will be 35 millions less to be paid in interest on the public debt, the principal of which will have been reduced by another billion (leaving a total of some 18 billions) by the end of 1929. The Government's running expenses are, in general, on the increase. The Budget Bureau keeps its aggregate down by paring and balancing. Thus, the Radio Commission was allotted $200,000 less in the 1930 Budget than has already been appropriated for 1929. The Federal Reserve Board gets cut $95,000. The American Battle Monuments Commission will get $100,000 less. Arlington Memorial Bridge Commission $300,000 less. An increase of 36 millions deemed necessary for the War Department will be partially offset by cutting down the -Navy Department's allotment by 16 millions. President Coolidge pointed out that the cost of national defense has increased about 100 millions since 1926 but explained that "in these prior years the defense establishments have had the use of surplus left over from the war." The President declared himself satisfied that money for the Army and Navy air services was well spent. Besides Army & Navy flying, the U. S. air program is carried forward by the National Advisory Committee for Aeronautics, and the Post Office, Agriculture and Commerce Departments. More than 140 millions was provided for the aeronautical work of these branches.