MESSAGE TRANSMITTING THE ALTERNATIVE BUDGET.

To the CONGRESS OF THE UNITED STATES:

I submit herewith the Alternative Budget for the service of the fiscal year ending June 30, 1923, as required by section 205 of the Budget and accounting act, 1921.

The information regarding revenues and expenditures is the same as that contained in the Budget, with such changes in arrangement as will better present the facts in connection with the spending departments.

The estimates of appropriations in the Alternative Budget have been so assembled and correlated that all estimates for any given department are included in one chapter.

THE WHITE HOUSE,

December 5, 1921.

WARREN G. HARDING.

V

MESSAGE TRANSMITTING THE BUDGET.

To the CONGRESS OF THE UNITED STATES:

I submit herewith the budget of the United States for the fiscal year ending June 30, 1923. It will be noted that the estimated ordinary expenditures for 1922 show a reduction of $1,513,537,682.20, compared with the actual ordinary expenditures for 1921; and that the estimated ordinary expenditures for 1923 show a reduction of $447,704,239 under 1922, making the estimated ordinary expenditures under the budget for 1923, $1,961,241,921.20 less than the actual ordinary expenditures for 1921. Including transactions in the principal of the public debt and investment of trust funds, the total estimated expenditures for 1922 show a reduction under the total actual expenditures for 1921 of $1,570,118,323.30, and the total estimated expenditures for 1923 show a reduction of $462,167,639 under the total estimated expenditures for 1922, making a reduction in total expenditures in the estimated budget for 1923, as compared with the total actual expenditures for 1921, of $2,032,285,962.30. It will also be noted that the total estimated receipts for 1922 are in approximate balance with the total estimated expenditures, including reduction in the principal of the public debt, and that the total estimated receipts for 1923 are within approximately $150,000,000 of a balance with the total estimated expenditures of that year. Such a discrepancy is unavoidable, when authorizations of expenditure are being enacted during the process of budget closing, but ways are provided for relatively easy adjustment without added taxation.

For the purpose of providing a portion of the funds necessary to balance the budget for 1923, in which the estimated expenditures exceed the estimated receipts by the sum of approximately $150,000,000, I recommend the following legislation in connection with the naval appropriation bill for 1923, which would result in the eventual automatic release of $100,000,000 now held in the naval supply account of the Navy Department:

"Hereafter, until the naval supply account shall have been reduced to a maximum sum of $150,000,000, which shall not thereafter be exceeded, one-half of all reimbursements otherwise due to the naval supply account, whether from current issues or from sales, shall be covered into the Treasury as miscellaneous receipts, and only one-half shall be credited to the naval supply account."

With continued pressure for economy in all departments and the passage of such legislation, the balancing of total receipts and total expenditures for the fiscal years 1922 and 1923 should be accomplished.

I also transmit herewith the report of the Director of the Bureau of the Budget on the budget of the United States and the operations of the Bureau of the Budget.

The details of the budget are shown in the accompanying statements, and may be briefly summarized as follows:

NOTE 1.-By continued pressure for economy and if the recommended legislation in connection with the naval appropriation bill for 1923, directing the reduction of the naval supply account in the sum of $100,000,000, is enacted, it is estimated that funds will be provided to balance the budget for 1923 as above.

NOTE 2.-In 1923 war savings certificates of the par value of $585,000,000 will become due. It is assumed that these maturities will be met by refunding. Since these notes were discounted at the time they were sold, by prepayment of interest, the Government did not realize par upon the same to the extent of $125,000,000. It would be consistent, therefore, with conservative business principles if the amount of the discount should not be permanently funded but should be retired as soon as possible out of surplus income.

NOTE 3.-To reconcile these totals with those shown in the Treasury Report it is necessary to add to the above figures for both receipts and expenditures for the fiscal year 1922 the sum of $25,000,000, and for the fiscal year 1923, $7,000,000, on account of reduction of capital stock of the United States Grain Corporation. This transaction occurred after the preparation of the statement of estimated expenditures for the fiscal year 1922, made by the Secretary of the Treasury August 4, 1921, amounting to the sum of $4,550,000,000. Summary of budget expenditures for 1923, estimated expenditures for 1922, and actual expenditures for 1921, exclusive of Postal Service expenditures paid from postal revenues.