Statement on the National Economy Program.

THE PRESIDENT said:

"What I asked for in my message yesterday was organized, nonpartisan cooperation by all forces to reduce Government expenses in the national emergency which insistently demands relief for the taxpayer.

"There are three general directions in which expenses can be reduced:

First: The direct reduction of appropriations within the authority of existing laws creating and specifying various activities of the Government.

A definite program to this end was placed before Congress in the executive budget proposals, in which there was a reduction of $369 million for the forthcoming year. I welcome and hope for further cuts by the Congress providing such reductions do not destroy essential functions, and that they are genuine and do not merely represent postponed appropriations until deficiency bills next December.

Second: There are a large number of expenditures within the bureaus and departments which cannot be reduced without a change in the laws so that the executive or the appropriations committees can reduce such expenditures.

In this direction the department heads have appeared before many different committees in Congress in the last months, and have pointed out a multitude of directions which could be considered by these committees for a reduction of expenditures, but most of them require repeal or amendment of the laws which compel expenditures. Seven departments alone have pointed out over 85 such different directions for consideration of those committees and which offer a possibility of very large reductions. There are still other areas which could, no doubt, be developed.

Third: Those directions of economy which can only be accomplished by reorganization and consolidation of Government functions so as to eliminate overlap, useless bureaus and commissions, and waste.

Seven years ago, 5 years ago, as a member of a Cabinet committee on the subject, and again 3 years ago, 2 years ago, 5 months ago, 4 months ago, 6 weeks ago, I recommended authorization to the executive to make a wholesale reorganization of Government functions so as to eliminate this overlap, abolish useless bureaus and commissions, and do away with waste, but such reorganization in each case to be subject to the approval of Congress. The action recommended has not been taken.

"A dominant consideration is that all these items, methods, and programs concern a great number of committees in the Congress. They concern a great number of departments and bureaus. If we take the 11 principal spending branches of the Government, each of them working independently with some part of over 30 different congressional committees which are concerned in these ideas and proposals, then even if we have the very best will in the world, without an atom of partisanship, the mere diffusion of effort seemingly makes effective progress on important items impossible.

"What I have asked for is not a commission but merely that the Senate and the House should each delegate representatives to sit down with representatives from the administration and endeavor to draft a comprehensive, general, national economy bill, covering the second and third areas of possible reduction in expenses. This one single economy bill or a few bills could be presented to the Congress embodying all the measures of economy proposed where change in the laws are necessary. Without such action, I see no way by which there can be a maximum reduction in expenditures."