TAFT ON ECONOMY
President Sends Another Special
' Message to Congress.
PLANS, FOR BETTER SERVICE
Results of Commission's Inquiry Into
Methods of Saving Money and
Getting Better Work From
Government Employes,
Washington, Jnn. 17. President
Tnft submitted to congress today an
other message, thla time on economy
and offlclency In tho government sorv
Ice. Tho message In part Ib an follows:
To tho Sonnto nnd llouso of Hopro
nontatlves: I tfubmlt for tho Information of tho
congress this report of progress made
In tho Inquiry Into tho efficiency nnd
economy of tho mcthodH of transact
' Ing public business.
Efficiency nnd economy In tho gov
ernment sorvlco have boon domnndod
with Increasing Inslstcnco for n gener
ation. Heal economy Is tho result of
efficient organization. Ily perfecting
tho organization tho tmmo bonoflts
niuy bo obtained nt less expense. A
reduction In tho total of the minimi
appropriations Is not In Itsolf a proof
of economy, slnco It Is ofton nccony
pnnlod by a decrease In offlclency.
Tho needs of tho nation may demand
a largo Increase of oxpondlturo, yot to
keep tho total upproprlntlons within
tho expected rcvenuo Ih necosRary to
tho malntonnnco of public credit.
Upon tho president must rcBt a
largo share pf tho responsibility for
the demands mndo upon tho treasury
for tho current ndmlnlatratlon of tho
cxocutlvo branch of tho government.
Upon tho congress must rest responsi
bility for thoso grants of public funds
which nro mado for other purpoBos.
Reason for tho Inquiry.
Kocognlzlng my uhnro of ronponsl
bllity for elllclcnt nnd economical ml
ministration, I havo endeavored dur
ing tho pnst two yoars, with tho ns
platnnco of hendB of dopnrtmentB, to
Hecuro tho best results. Ab ono of
tho moanH to thlfl end I requested a
giant from congress to mnko my ef
forts moro cffoctlTo.
An appropriation of $100,000 was
mmlo Juno 25, 1010, "to onnblo tho
president to lnqulro Into tho mothods
of transacting tho public business of
tho executive departments and othor
government establishments and to
recommend to congress such legisla
tion as mny bo noccBsnry to carry Into
effect changeB found to bo doBlrnblo
that cannot bo accomplished by execu
tive action nlono." I havo boon given
this fund to cnnblo mo to tnko action
and to mnko Hpeclflc rocommondntlonB
with respect to tho details of transact
ing tho business of an organization
whoso activities nro almost as varlod
ns thoso of tho entire buslnosB world,
Tho operations of tho government nf
feet tho Interest of every person liv
ing within tho Jurisdiction of tho Unit
ed States. Its organization embraces
stations nnd centers of work located
In ovory city nnd In tunny locnl sub
divisions of'tho country. Hb gross ex
penditures amount to nearly $1,000,
000,000 nnnunlly. Including tho per
sonnel of tho military and naval es
tablishments, moro than 400,000 per
sons nro required to do tho work Im
posed by law upon tlio cxocutlvo
branch of tho government.
Plan of tho Work.
In accordance with my Instructions,
tho commission on economy nnd effi
ciency, which I orgnnlzcd to aid mo
in tho Inquiry, has directed Us efforts
primarily to tho formulation of con
croto rocommondntlonB looking to tho
betterment of tho fundamental condi
tions under which governmental op
orations must bo carried on, With n
baals thus laid, it has procoudod to tho
prosecution of detailed studies of in
dividual scrvlcea nnd clnssos of work,
nnd of particular practices and meth
ods, pushing these studies nn far, nnd
covering ns many points nnd norvlces,
as tho rosourcoB nnd ttmo nt Its dis
posal havo permitted.
In approaching its tnak It lias di
vided tho work Into five Melds of In
quiry having to do rcspoctlvoly with
organization, personnel, business meth
ods, accounting nnd reporting, and
tho budget. 1
Organization.
I hnvo stated that tho congress, tho
prestdont, and tho ndmlnlstrntivo offi
cers nro attempting to discharge tho
duties with Which they ore Intrusted
without full Information as to tho
agencies through which tho work of
tho government Ib bolng porformod.
To provide moro comploto Information
nu this point tho commission has sub
mitted to mo a report on tho organiza
tion of the governmont as it oxlstod
July 1, 1011. This roport, which Is
trnnsmlttod herewith, shown In groat
detail, by mentis of outlines, not only
tho departments, commissions, bu
reaus nnd offices through which the
governmont porforiiiH lt varied .ac
tivities, but nlo the soetlonu, iiliopH,
field stations, etc., constituting tho
subordinate divisions through which
tho work Is actually done. It shows
for tho sorvIcoB at Washington each
such Html unit ns n laboratory, library,
ehop and administrative subdivision;
and for tho Borvlcos outstdo of Wash
ington each station and point nt which
nny activity of tho government 1b enr
rtcd on,
Comprehensive Plan of Organization,
With this outline ns a basis, tho
commission ban onterod upon tho
preparation of threo series of reports.
Tho first scries deals with tho man
ner In which tho Borvlcos of tho gov
ernment should bo grouped In depart
ments. This Is a matter of fundament
al Importance. It Ib only aftor n sat
isfactory solution of this problem that
many Important measures of reform bo
como posslblo. Only by grouping Borv
lcos according to their character can
substantial progress bo mado In elim
inating duplication of work nnd plant
and propor working relations bo es
tablished between sorvlces ongagod In
similar nctlvltlos. Until tho hend of
n department In called upon to deal
exclusively with matters falling In but
ono or a very few distinct fields, of
fectlvo supervision and control Is Im
possible As long as tho Hnmo depart
ment embraces servlcos so dlvorso In
character nfl thoso of Ilfo saving nnd
tho management of public finances,
standardization of accounting mothodB
and of other biiBlnosB prnctlcoa Ib ex
ceedingly difficult of attainment.
So dopendont nro other reforms upon
tho proper grouping of sorvIcoB that
I havo Instructed tho commission to
Indlcnto In Its roport tho chnngcB
which should bo mndo In tho oxlstlng
organization and to proceed In tho
satno way n would far-seeing archi
tects or engineers In planning for tho
Improvement and development of a
groat city. My doslro Ib to socuro nnd
to furnish to tho congro a scheme
of organization that can bo used as a
basis of discussion nnd action for years
to como. ,
In tho pnst Borvlcos hnvo boon cre
ated ono by ono hb oxlgonclos hnvo
Hoomed to demand, with llttlo or no
roforenco to nny schomo of organiza
tion of tho government ns n whole. I
nm convinced that tho timo hna como
when tho government should take
stock of Its activities and agendas and
formulate a comprehonfllvo plan with
roforonco to which futuro changes may
ho mndo. Tho roport of tho commis
sion Is bolng propnrod with this Idea
In mind. When completed It will bo
transmitted to congrosB. Tho recom
mendations will bo of such n charac
ter that thoy enn bo ncted upon ono
by Ono If they commend thomBclven
to tho congress nnd ns notion In re
gard to nny ono of them Is deemed to
bo urgent.
Report on Particular Services.
Tho socond nndsthlrd Borlos of rc
portB dcnl, rospoctlVoly, with tho or
ganization nnd nctlvltlos of particular
services, and tho form of organization
for tho performance of particular busi
ness operations.
Ono of tho reports of tho socond so
rlos Is upon tho revenue euttor Borvlco,
which costs tho government over two
and a half million dollars each year,
In tho opinion of tho commission Its
vnrlod nctlvltlos can bo performed with
equal, or greater, advantngo by1 othor
Borvlcos. Tho commission, thorofore,
rccommondfl that It bo abolished. It
Is estimated that by so doing a Hav
ing of not loss than $1,000,000 a year
can bo mado.
Another roport Illustrating tho sec
ond Borlcn recom.mondB that tho light
house and llfo saving sorvlces bo ad
ministered by n slnglo bureau, Instead
of as at proflont by two buroaiiB lo
cated In different dopnrtmonts. Thoso
Borvlcos hnvo much In common. Geo
graphically, thoy nro similarly located;
administratively, thoy havo many of
tho snme problems. It Is estimated
that consolidation would result In n
Bavlng of not lean than $100,006 nn
nunlly. General Technical Services.
A third Borlos of reports Is being pro
pnrod on thoso branches of tho organ
ization which aro technical In charac
ter and which exist for tho sorvlco of
tho government as n wholo -branches
which havo to do with auch matters ns
public printing, heating, lighting, tho
making of repairs, tho providing of
transportation, and tho compilation of
stntlBtlcB where mechanical equipment
Ib cssoutlal.
Abolition of Local .Offices.
I'erhapfl the part of the organization
In which tho greatest economy In pub
lic oxpondlturo Is posalblo is to bo
found In tho numeroua local offices of
tho government. In boii)o lnatnncoR tho
establishment and tho dlHcontlnuanco
of theso local ottlcoa nro mnttera of nd
mlnlstrntivo discretion. In othor In
stances thoy nro established by per
manent law In such a manner that
their discontinuance Is boyond tho
powor of tho proBldont or that of nny
cxocutlvo olllcor. In a numbor of serv
lcos thoso laws woro pasBod nottrly a
contury ngo. Ghnnges In economic con
ditions havo tnken plnco which havo
had tho offoct of rendering cortnlu of
fices not only tsclcsa, but oven worso
than useless In that their vory exist
ence needlessly swells expenditures
and complicates tho ndmlnlatrnttvo
Byatom.
Tho attention of congress hnB been
called repeatedly to these conditions.
In Homo Instances tho congress hnB ap
proved rocommendatlonB for tho abo
lition of useless positions. In other
cases not only do tho rocommondn
tlonB of tho cxocutlvo that uboIoss po
sitions bo abolished remain unheeded,
but laws uro passed to ostabllsh now
ofllcos ut placoH where thoy aro not
needed.
Tho responsibility for tho main
tenance of thoso conditions muat nat
urally bo divided between tho con
gross and tho executive Hut that tho
exeoutlvo has porformod hU duty when
ho hnB called tho attention of tho
congress to tho matter must also be
admlttod. Realizing my responsibility
tu tho premises. I have directed tho
commission to prepnro a roport sotting
forth tho positions In tho local serv
lcos of tho governmont which may bo
discontinued with ndvnntngo, tho sav
ing whloh would result from such uc
tlou mid tho cjinngos In law which nro
necessary to carry Into effect chnugos
In organization found to bo dealrnblo
On tho coming In of tho roport, such
offices as may bo found usoIosb nnd
can bo abolished will bo so treated by
oxccutlvo order.
In my recont message to tho con
gross I urged consideration of tho
necessity of placing In tho classified
sorvlco all of tho local officers under
tho dopnrtmonts of tho treasury, tho In
terior, postofllcoi and commerce and
labor.
Classification of Local Officers.
Tho Importance of tho exlstcnco of
a competent nnd reasonably perma
nent civil sorvlco was not approclatod
until tho last quarter of tho lust cen
tury. At that tlmo examinations wero
Instituted ns a meant) of ascertaining
whether candidates for appointment
possessed tho rcqulslto qualifications
for governmont positions. Slnco than
It has come to bo universally admlttod
that entrance to almost ovory subor
dinate position In tho public sorvlco
should bo dependent upon tho proof
In some appropriate way of tho ability
of tho appointee.
Ab yot, however, llttlo If any attempt
has been mndo by law to socuro, elthor
for tho hlghor ndmlnlstrntivo posi
tions In tho sorvlco at Washington or
for locnl ofllccs, tho qualifications
which tho Incumbents of thoso posi
tions must havo If the business of tho
government Is to bo conducted in tho
moBt efficient nnd economical man
ner. Furthermore, In tho enso of many
of tho local ofllcers tho law positively
provldos that the term of ofllco shall
bo of four yearn' durntlon.
Tho noxt step which must bo tnkon
is to require of heads of bureaus In tho
dopnrtmentB nt Washington, and of
most of tho locnl oflicora undor tho
departments, qualifications of ca
pacity similar to thoso now required
of certain bonds of burenus nnd of lo
cal ofllcors. Tho oxtenslon of tho
morlt Hyslom to theso ofllcors and a
noedod readjustment of salnrlos will
havo Important oftocta In securing
greater economy and olllclonoy.
In tho first place, tho possession by
tho IncumbontB of theso positions of
requisite qualifications must In Itself
promoto efficiency.
In tho second place, tho removal
of local ofllcors from tho realm of po
litical patronngo In mnny cases would
reduco tho pay roll of tho Held serv
lcos. At tho present time tho lncum
bontn of mnny of thoso positions
leave tho actual porformnnco of many
of their duties to doputles nnd assist
ants. Tho governmont often pays
two porsonH for doing work thnt could
easily bo done by ono. What Is tho
loss to tho government cannot bo
fitntcd, but thnt It Ib vory lnrgo can
not bo denied, when It Is remembered
how numorous aro tho local ofllccrB
In tho postal, customs, Jntornnl rove
nue, public lnndu, nnd othor field serv
ices of tho governmont.
In tho third place, bo long as local
oflicora nro within tho sphero of pq
lltlcal pntronngo It Is difficult to con
sider tho question of tho establish,
mcnt or dlscontlnunnco of locnl offices
npnrt from tho effect upon local po
litical sltuntions.
Finally, tho viow thnt thoso vnrl
oun offices arc to bo filled ns a result
of political considerations baa for its
consequenco tho necessity thnt tho
president nnd members of congress
dovoto to matters of patronngo tlmo
which thoy should dovoto to questions
of policy and ndmlnlatrntlon.
Tho gronteBt economy nnd effi
ciency, nnd tho benefits which mny
nccruo from tho president's devoting
his tlmo to tho work which Is most
worth while, tuny bo nssured only by
fronting nil tho distinctly ndmlnlstrn
tivo officers In tho departments nt
Washington and In tho Hold In tho
entno way as Inferior officers havo
been treated. Tho tlmo has como
when all thoso offlcora Bhould bo
plnccd in tho claaslflod sorvlco. Tho
tlmo has nlsn como when thoso pro
visions of law which glvo to theso
officers a fixed term of yonrB should
bo repealed. So long nB n fixed term
la provided by tho law tho quostlon
of reappointment of an olllcor, no
matter how elllclontly ho may havo
performed IiIb dutlos, will Inevitably
bo raised periodically. So long as np
polntmoutB to those ofllcos muat bo
confirmed by tho senate, and so long
as appointments to thorn bo mndo ov
ory four yenrs, Just bo long will It bo
Impossible to provide a force of em
ployes with a reaaonnbly pormnnont
tenuro who nro qunlllled by ronson of
education and training to do tho bent
work.
Superannuation.
Attention hna boon directed In ro
eont years to tho need of a suitable
plan of retiring tho superannuated
employes In tho oxccutlvo civil sorv
lco. In tho belief that It Is dcRlra
bio that auy steps toward tho estab
lishment of auch a plan shall be tak
en with caution, I Instructed tho om
mlsslon to mnko nn Inquiry first In
to tho conditions nt Washington. This
Inquiry has been directed to the as
certainment of the extent to which
Hiipornnnuntlon now exists and to tho
consideration of tho availability of
tho vnrlouB plans which olthor hnvo
beon proposed for adoption in this
country or havo actually been adopt
ed In othor countries. I shall submit,
In the n oar future, for tho coiiBtdorn
tlon of tho congress a plan for tt , re
tirement of aged omployoB In the civ
il scrvlco which will anfoguanl tho
Intorosta of tho government and at
tho enmo tlmo mnko rontionnblo pro
vision for tho noods of thoso who
havo given tho beat part of their llvoa
to tho sorvlco of tho atato.
Efficiency of Personnel.
I havo caused inquiry to be mndo
Into tho character of tho appotntooa
from tho point of vlow of oftlriency
nnd compoteuco which hna resulted
from prosont mothods of npnolnt'
ment; Into tho present rolntlon of
compensation to tho character of
work dano; Into tho oxlstlng methods
of promotion nnd tho keeping of ef
ficiency rocords In tho various de
partments; nnd Into tho conditions
of work In government ofllccs. Thla
Inquiry will help to determlno to what
extent conditions of work.nro uniform
In tho different departments and how
far uniformity in such conditions will
tend to Improvo tho service I havo
felt that satisfaction with tho condi
tions In which they worked was a
necesBary prerequisite to nn efficient
personnel, and that satisfaction was
not to bo expected where conditions
In ono department wero Jess favora
ble than In another.
Thla Inquiry baa not boon complet
ed. When It hna been ascertained
thnt ovlls exist which enn bo rem
edied through tho exorclao of tho pow
ers now vested In tho president, I
ehnll endeavor to remedy thoso ovlls.
Whcro thnt Is not the case, I shall
present for tho consideration of tho
congress plana which, I believe, will
bo followed by great Improvement in
tho service.
Business Methods.
In every caao whoro technical pro
cesses havo been studied It has been
domonstrntcd boyond question thnt
lnrgo economies mny bo offected. Tho
aubjects first approached wero thoso
which Ho closo to each administrator,
viz, ofllco prnctlcos. An lllustrntlo'n
of tho possibilities within this flold
may bo found In tho results of tho in
quiry Into tho methods of hnndling
and filing correspondence Kvory of
llco In tho government has reported
its mothods to the commission. Thoso
roports brought to light tho fact that
present methods woro quite In tho re
verso of uniform. Some- ofllcos fol
low the practlco of briefing nil corro
Bponudenco; Bomo do not. Somo have
flat flies; others fold all papers be
fore filing. Somo uso press copies;
othors retain only enrbon coplos.
Unnecessary Cost of Handling and
Filing Correspondence.
Tho reports also show not only n
vory wldo rango In tho mothods of
doing this comparatively Elmplo part
of tho government business, but an ex
traordinary rango In cost. For tho
handling of Incoming mall tho aver
ages of cost by departments vary
rrom $5.84 to $84.40 per 1,000. For tho
handling of outgoing mall the avor
ngca by departments vary from $C.94
to $09.89 per 1,000. This does not in
cludo tho cost of preparation, but Is
confined morcly to tho physical aldo
of tho work. Tho variations between
Individual offices Ib mnny tfrncs great
or than that shown for averages by
departments.
It Is at onco evident either thnt Is
Ib costing somo of tho offices too llttlo
or thnt others nro being run nt nn
unwarranted expense Nor nro theso
variations explained by differences in
character of work. For example, thorp
nro two departments which hnndlo
practically tho snmo kind of business
nnd In very lnrgo volume Tho nver
ngo coat of handling incoming mall to
ono was found to bo over alx tlmea as
great as tho cost of handling Incoming
mall to tho other. Excluding tho coat
of preparation, tho avcrago coat per
1,000 for outgoing mnll to ono wns
nearly GO per cent, greater than that
for tho othor.
It hns been found that differences of
averngo coat by departments closely
follow differences In mothod nnd that
tho greatest cost Is found In tho de
partment whcro iho method is most
Involved. Another fact Is of Interest,
viz., that In tho two departments
nbovo referred to, which show tho low
est averages, orders havo boon Issued
vhlch will lead to largo saving with
out Impairing ofllcloncy. It cannot bo
said what tho saving ultimately will
bo when tho attention of officers In
all of tho departments has been fo
cused on present motllods with a view
to changing them In auch manner as
to reduco coat to tho lowest point
compatlblo with efficient service it,
howovor, must bo a conalderablo per
centage of nearly ?fi,000,000, tho total
estimated coat of handling thla part
of tho government bualnosa nt Wash-
Ington.
HesultB hnvo nlrendy beon obtained
which aro notoworthy. Mention line
been mndo of tho ordcra issued by two
departments. Of thoBo tho order of
ono Ib moat revolutionary In charac
ter, slnco It rcqulrea flnt filing, where
beforo nil correspondence wns folded;
tho doing nway with lottcrpresa cop
ies; and tho discontinuance of In
dorsements on Blips,, ono of tho most
expensive processes nnd ono which In
tho other dopnrtmont hns been cnrrlcd
to very grent length.
Need for Labor-Saving Office Devices.
Tho nso of lnbor-snvlng olllco de
vices In tho sorvlco has been mado tho
subject of Bpeclnl Inquiry. An Im
pression proviitls that tho governmont
Is not making uso of mechanical de
vices for economizing Inbor to tho
snmo extent us nro efficiently mnnnged
private enterprises. A study has been
mado of the oxtent to which dovices
of this character aro now bolng em
ployed in tho Bovnrnl hranchos of tho
governmont nnd the opportunities thnt
oxlst for their moro general ubo. In
ordor to secure information ns to the
various kinds of lnbor-snvlng dovlcos
thnt aro In existence nnd ns to their
adaptability to governmont work, an
exhibition of lnbor-snvlng otllco appli
ances wns held In Washington from
July 0 to 15, 11)11. Ono hundred nnd
ten manufacturers nnd dealers partici
pated, and moro than 10,000 officers
nnd employees visited tho exhibition.
Thoro Is no doubt that the exhibi
tion Borvod the purpose or bringing to
tho attention of otllcera devices which
enn be employed by them with advan
tage. The, holding .of this exhibition
wns, howovor, but a step preparatory
to the contemplated Investigation.
Unnecessary Cost of Copy Work.
Tho offorta of tho commission re
sulted nlso In tho adoption by aovoral
bureaus or departments of improved
niethods of doing copying.. Tho amount
of copy work heretofore dono by hnnd
ench year in tho many offlcos Ib esti
mated to aggregate several hundred
thousand dollars. Tho commission ex
hibited, nt Its offices, appliances that
were thought to bo especially adapt
ed to this kind of government work.
Following these demonstrations meth
ods of copying woro Introduced which
havo brought about a saving of over
75 per cent, in offices whcro used for
six months. Thla chango in one small
cross-section of office practlco will
moro than offset tho wholo cost of my
inquiry,
Waste In tho Distribution of Public
Documents.
Going outsldo the office, ono of tho
business processes which havo been
Investigated is tho distribution of de
partmental documents. This is a sub
ject with which both tho congress and
administration heads aro familiar. Tho
prevailing practice in handling depart
mental publications Ib to havo them
manufactured at tho government
printing office; each Job when com
pleted Ib delivered to tho department;
hero tho books or pamphlets aro
wrapped and addressed; thoy aro then
Bent to tho poBtofflce; thoro thoy nro
assorted and prepared for shipment
through tho malls; from tho postofflco
they aro sent to tho railroad station,
which is only a few steps from tho
government printing ofllco, whence
they started. Tho results of this labo
rious and circuitous method Is to
mnko tho uso of the host mechanical
oqulpmont Impractlcnblo nnd to wnsto
ench year not less than n quarter of
a million dollars of government funds
In useless hnndling, to say nothing
of tho Indirect loss duo to lnck of
proper co-ordination.
Wasteful Use of Properties and Equip
ment. Tho uso of equipment is a matter
.which nlso has been lnvostlgntcd. Up
to tho present tlmo this Investigation
hnB beon in tho main confined to tho
subject of electric lighting. Tho gov
ernmont pays over $G00,00,0 por yenr
for olcctrlc current; It has mado largo
cnpltnl outlnys for wiring nnd fixtures.
With tho Increnalng demnndB In many
buildings tho present oqulpmont is
taxed to its limit and if tho present
mcthodB aro continued much of this
wiring must bo dono over; In many
places employees aro working at a
great physical diaadvantngo, duo to In
ndoqunto and Impropor lighting, and
thereby with reduced ofllcloncy. In
every place where tho Inquiry hns
been conducted It nppenrs thnt thero
Is largo waato; that without the coat
of rewiring, simply by giving proper
attention to location of lights nnd the
uso of propor lnmps nnd reflectors,
tho light offlclency nt points where
needed mny ho much Increased nnd
tho cost of current reduced from 30
to CO per cent. Other Inquiries Into
tho ubo which Is being mndo of prop
erties nnd oqulpmont nro contemplat
ed which promise oven lnrger results.
Unnecessary Cost of Insurance.
It Is the policy of tho government
not to Insure public property against
flro and other losses. Question has
been raised whether tho government
might not apply tho satno principle
to other forma of risk, Including In
auranco of tho fidelity of officials and
employees. A roport la now In prepa
ration on tho subject which will show
opportunities for largo savings. I be
llovo that tho presont expense for In
suring tho faithful execution of con
tracts, which, though paid by tho con
tractor, Is moro than covcrod In tho
added prlco to the government, can
bo largely reduced without taking
away any clement of security.
Lack of Specifications.
Tho importnnce of estnbllshlng nnd
maintaining stnndnrd specifications Is
found not only In tho possibility of
vory mnterinlly reducing tho direct
cost of government trading, but also
In Insuring to tho service materials,
supplies and equipment which nro bet
tor adapted to Its purposes. Ono of
tho results of Indeflnltcness of specifi
cations Ib to lmposo contract condi
tions which mnke It extra haznrdous
for persons to enter Into contractual
relations. This not only deprives tho
government of tho advantngo of brond
competition, but cauaca It to pay nn
ndded mnrgln In prlco to vendors who
must carry tho rink.
Excecslvo Coat of Travel.
Ono of tho ffrat atopa taken toward
constructive work wns tho reclassifi
cation of tho expenditures for tho
year 1910 by objects. Tho foundation
was thus mndo for tho investigation
of government trading practicea.
Whllo It wns recognized thnt this
largo field could not bo covered within
a yenr except nt enormous cost, tho
subjects of "Traneportatlon of per
sons" and "Subsistence whllo In trav
el fltatus" wero tnken ns concroto ox
nmplea. Tho nnnunl cost of travel to
tho government was found to bo
about $12,000,000. It was also found
that tho government employeea wero
traveling In prnctlcnlly every wny that
wna open to tho public; It wnB fur
ther found thnt nlthough tho govern
mont wns tho largest usor of trans
portation, It wns buying rnllrond tick
ets on a less favornblo hnals thnn
would bo posslblo If tho subject of
traveling expenditures woro systemat
ical handled from tho point of vlow
of tho govornmont as a wholo. Tho
form of ticket moat ofton used bo
tAvoen such polntB na Now York. Phil
adelphia and Washington was tho sin-glo-trlp,
flrst-clnss ticket. In two do
pnrtmentB doflnlto tests havo been
mndo In tho use of mllonge books nnd
In each practically tho samo result
has been reported, viz., nn avorago
saving of a little over one-hnlf of ono
cout por mile.
Better Methods for Purchasing.
Through a long period of yoara nnd
by numerous laws nnd orders thero
hns grown up n procoduro governing
public advertising nnd contracting
thnt Is moro burdensome and expen
sive In some cases than Is nocessnry.
Tho procoduro Is not uniform In the
ynrlous departments; It Is not uni
form In mnny cases for the different
Borvlcos in tho Bamo dopartmctit. To
make uniform tho requirements so far
as practlcablo will bo In tho Interest
of economy nnd efficiency nnd bring
about that simplicity that will securo
tho largest opportunity for contract
ors to bid for government work, and
will securo for tho government the
most favorablo prlcos obtained by any
purchasor.
The Budget.
Tho United States is tho only great
nation whoso government Is operated
without a budget. This fact seems to
bo moro striking when it is consid
ered thnt budgotB and budget pro
cedures nro tho outgrowth of Demo
cratic doctrines and hnvo had an im
portant pnrt In tho dovelopmont of
modern constitutional rights. Tho
American commonwealth hns suffered
much from Jrresponalblllty on tho pnrt
of Its governing ngoncles. Tho consti
tutional purposo of a budgot Is to
mnko government rcsponalvo to pub
lic opinion and responsible for Its
acts.
The Budget as an Annual Program.
A budget should bo tho means for
getting beforo tho leglnlatlvo branch,
boforo tho prosa, and beforo the peo
plo a deflnlto nnnual program of bual
neas to bo financed; It should bo In
tho nature of a proapectua both of
rovenuea and oxpondlturos; It should
comprehend every rolatlon of tho gov
ernment to tho people, whothor with
reference to tho raising of rovonuea
or the rendering of service
In many foreign countries tho nn
nual budget program is discussed with
8peclal referenco to tho rcvenuo to bo
raised, tho thought being that tho
raising of revenue bears moro direct
rolatlon to welfare than dooa govern
ment expenditure Around qucatlons
of sourco of rcvenuo political parties
havo been organized, and on such
questions votora In tho United States
havo taken sides Blnco tho first rcve
nuo law was proposed.
Public-Welfare Questions.
Tho principal government objects
in which tho pcoplo of tho United
States nro Interested includo:
Tho national dofonso; tho protec
tion of persons and property; the pro
motion of friendly relations nnd tho
protection of American interests
abroad; tho regulation of commorco
and Industry; tho promotion of agri
culture, fisheries, forestry and min
ing; tho promotion of manufacturing,
commerce, and banking; tho promo
tion of transportation nnd communica
tion; tho postal sorvlco, Including pos
tal savings and parcels post; tho caro
for and utilization of tho public do
main; tho promotion of cducntion, art,
sclenco nnd recreation; tho promotion
of tho public health; tho caro nnd
cducntion of tho Indians and other
wards of tho nation.
Theso aro public-wolfaro questions
In which I nsaumo ovory citizen has a
vital interest. I bellevo that ovory
member of congrcaa, na an official rop
reaentatlvo of tho people, each editor,
as a non-ofllclal roprcsontntlvo of pub
lic opinion, ench citizen, na a bene
ficiary of tho trust Imposed on offi
cers of tho government, should bo
ablo readily to ascertain how much
hns been spent for ench of thoso pur
poses; how much hns boon approprl
ated for tho current year; how much
tho administration Is asking for each
of thcao purposes for tho noxt fiscal
year.
Furthermore, each poraon interest
ed should havo laid beforo him a
clear, wcll-dlgostcd Btatoment show
ing In dotall whether monoys approp
riated havo been economically spent
and whether each division or ofllco
has beon efficiently run. This Is tho
Information which should bo nvallublo
each year In tho form of n budget and
In dotall accounts and reports support
ing Uu budgot.
Continuance of the Commission.
I nsk tho contlnuanco of this com
mission on economy and efficiency bo
causo of tho excellent beginning
which hns been mndo toward tho re
organization of tho machinery of this
government on business principles. I
ask It becauao Its work In" entirely
non-partlsnn in character and ought to
apply to ovory citizen who wishes to
give effectiveness to popular govern
ment, In which wo fool a just pride.
Tho work further commends Itsolf
for tho renson that tho cost of or
ganization nnd work hna beon cnroful
ly considered nt every point. Threo
months wero tnken In consideration
of plans beforo tho Inquiry was bo
gun; six months wero then spent In
preliminary Invcatlgntlona beforo tho
commission was organized; beforo
March 3, 1911, when I asked for a con
tinuation of tho original appropria
tion for tho current yenr, only $12,000
had boon spent
Tho oxpondlturo for tho Inquiry dur
ing tho present Dscal year is at tho
rato of $130,000. Tho mass of Infor
mation which must bo collocted. di
gested nnd Bummnrlzed pertnlnlng to
ench subject of inquiry is enormous.
From tho resulta obtained It Is evi
dent that ovory dollar which Is spent
In tho prosocutlon of the Inquiry la
tho futuro will roault In manifold sav
ings. Every owm "vhlch baa been
or will bo offected through changes In
organization or method will Inuro to
tho benefit of tho government nnd of
tho pooplo in Increasing mensuro
through tho years which follow. It is
clearly the pnrt of wisdom to provido
for tho coming yonr moans at least
equal to thoso avnilnble during tho
current yenr, nnd In my opinion tho
nppropriatlon should be lncrensed to
$200,000, and nn additional nmount of
$60,000 should be provided for tho pub
lication of thoso results, which will bo
of continuing vnluo to ofllcors of tho
governmont and to tho poople.
WM. II. TAFT.
Tho Whlto House,
January 17, 1912.