Monday, Dec. 10, 1956

Family Austerity

Tiburcio, the imaginary Mr. Everyman of Panama, who ordinarily dismisses a government economy drive as little more than whimsical propaganda, thoughtfully withdrew his tongue from his cheek last week. The first budget by Ernesto de la Guardia, the austerity-preaching new President:

P: Abolished the job of collector of delinquent taxes, which in recent years paid the lucky incumbent anywhere from $3,000 to $14,000 a month in 20% commissions on the funds recovered. Salaried civil servants will take over the collecting. The big loser: Carlos de la Guardia, the President's brother, who got the job under the last administration.

P: Slapped a $1,000-a-month limit on the amount of consular fees (for ship registrations, invoices, etc.) that consuls are entitled to pocket, ordered anything over that sum to be turned in to the treasury. Prospective loser: newly appointed New York Consul Roberto de la Guardia, the President's brother-in-law and distant kinsman, who could have collected as much as $5,000 a month as his legal cut of consular fees.

P: Closed four embassies (in Austria, Belgium, Denmark and Switzerland). Losers: assorted political creditors and relatives who had looked forward to an easy, well-paid tour of duty abroad.

P: Docked official expense allowances. One loser: President de la Guardia himself, whose expense account went down from $750 a month to $600.

Mainly because of a big road-building program, the budget still hit a record $52 million. But "Ernestito" de la Guardia hoped that his economies, plus future cost-paring, would make the budget balance.

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