This net reduction of $16,810,359 includes increases from $951,250 to $1,021,044 for the office of the chief clerk and superintendent, due principally to an increase in the estimate for stationery for the Internal Revenue Service; from $439.160 to $532,386 for the Division of Bookkeeping and Warrants, an increase of $93,226, of which $40,000 is for contingent expenses, public moneys, $5,000 for recoinage of minor coins, and $50,000 for recoinage of silver coins; from $2,317,170 to $2,544,500 for the Comptroller of the Currency, a net increase of $227,330, the special fund for salaries and expenses of national-bank examiners being increased $250,000; from $18,944,129 to $20,597,835 for the Coast Guard, an apparent increase of $1,653,706, due to the fact that the 1926 estimate is based on a full-year program of arresting rum-running activities, whereas the 1925 program was for but a part of the year; from $5,945,675 to $7,378,430 for the Bureau of Engraving and Printing, an increase of $1,432,755, due to the necessity for increasing the output of currency, particularly of $1 bills; from $12,242,882 to $12,714,486 for the Supervising Architect, an increase of $471,604, due largely to the increasing necessity for repairing, painting, and remodeling of old buildings, and to new buildings being placed in operation each year; and reductions from $155,620 to $125,960 for the General Supply Committee, due to diminishing activities in the handling of surplus materials; from $6,868,430 to $6,668,960 for the Public Debt Service, a reduction of $199,470 in personnel, fiscal operations, and issues of Federal reserve, farm loan, and intermediate credit bank securities; from $36,991,640 to $36,278,700 for the customs service, a reduction of $712,940, of which about $320,000 is due to decreased activities and the remainder to estimated reductions in refunds under permanent indefinite appropriations; from $1,747,800 to $1,652,093 for the Office of the Treasurer of the United States, due to reduced activities and reorganization economies; from $80,494,236 to $61,143,740 for the Internal Revenue Service, a reduction of $19,350,496, which includes an item of $16,140,000 in the second deficiency bill for 1925 for 25 per cent refund of income taxes, about $3,000,000 for salaries due to better organization and increased efficiency, and reduced expenditures from permanent indefinite appropriations and special funds; from $9,520,497 to $9,127,057 for the Public Health Service, due principally to a reduction in activities and curtailment of State aid in certain matters. 1 In addition, a total of $1,492,755.46 of the unexpended balances from prior years was reappropriated for expenditures in 1925. 2 In addition, recommendation is made for the reappropriation of an unexpended balance from prior appropriation of $203,255.95, and for contract authorization of $2,150,000. The amount estimated for the maintenance and operation of the Regular Army will provide for a force of 12,000 officers and an average enlisted strength throughout the year of approximately 118,000 exclusive of the Philippine Scouts. It will also provide for the training of 14,650 reserve officers and 770 reserve enlisted men for a period of 15 days, the same as for the current fiscal year, and 352 reserve officers for a period of more than 15 days, as against 615 officers during the current fiscal year; for the attendance of 29,000 men at citizens' military training camps as against 33,900 during the current year; for an average enrollment of 113,000 students in the Reserve Officers Training Corps units as against 119,000 during the current year; and will enable the Militia Bureau to maintain an average strength throughout the year of 173,500 as against 177,000 estimated for the current year. In the cases of the Reserve Officers' Training Corps and the citizens' military training camps the total funds available for 1925 have been reduced in the Budget for 1926 by only $13,820. The reduction in the number of students and trainees is due to a less amount of free issues of supplies which will be available from surplus war stocks during 1926. * * The Budget estimate also provides for essentials connected with the maintenance and operation of active military posts, camps, and stations as now constituted. Pending action by Congress upon the call made on the War Department in the act of June 7, 1924, for "a comprehensive plan for necessary permanent construction at military posts * based on using funds received from the sale of surplus War Department real estate, and for the sale of such property now owned by the War Department as, in the opinion of the Secretary of War, is no longer needed for military purposes," no estimates for new construction at military posts have been included in the Budget. Provision is made for necessary Army transportation, including the operation of the Army Transport Service: for the purchase of 2,059 horses for the Army to replace others incapacitated by old age; for the expenditure of $175,000 for the procurement of new automobiles toward the replacement of worn-out machines; for the proper upkeep of existing fortifications and accessories, and for the carrying forward of the general plan for the protection of the Panama Canal and the Hawaiian Islands. For the Air Service $17,061,191 is estimated, $14,911,191 being for direct appropriation and $2,150,000 for obligation by contract, as against a total of $14,476,619 available for the current year. This will enable the Air Service to make reasonable progress toward cutting down its present shortage in heavier-than-air craft and at the same time assist in keeping alive the aircraft industry for use in time of emergency. In this estimate provision is made for initiating the removal of the Air Service activities from inadequate rented facilities at McCook Field, Dayton, Ohio, to a more suitable site in the same vicinity donated to the Government by private individuals. For the United States Military Academy provision is made for essentials connected with its maintenance and operation and, in addition, $350,000 is provided toward the construction of a new cadet mess hall, dormitory, cadet store, and drawing academy. Funds recommended will care for the various nonmilitary activities of the War Department, such as national cemeteries, national military parks, national monuments and memorials, the Alaskan cable system, and the construction and maintenance of roads, bridges, and trails in Alaska. For rivers and harbors $40,000,000 is estimated for maintenance and improvement of existing river and harbor works, in addition to $5,437,600 which will be available from permanent specific and indefinite appropriations; for flood control on the Mississippi and Sacramento Rivers $10,000,000 and $500,000, respectively, are estimated; the total provided for all items of river and harbor improvement being $59,277,990 as compared with $59,971,621 for the current year. The estimate for completing the construction of Dam No. 2 at Muscle Shoals is $6,541,590, which covers contract obligations heretofore authorized by Congress. Of this sum $3,040,390 is carried in the Budget for 1926. The estimate for the National Home for Disabled Volunteer Soldiers is $193,362 below the amount available for 1925. This difference comprises net reductions made in eight different items of appropriation for the maintenance and operation of the 10 homes and for aid to State homes. The item of subsistence for the homes is increased by $137,340. The amount estimated for the Panama Canal, $8,735,366, exceeds the appropriation for 1925, plus the amount proposed for reclassification of field salaries, by $1,306,220. This increase is necessitated by reason of the nonavailability in 1926 of funds from "Savings" and "Depreciation reserve" accounts of the Panama Canal. Besides the normal operating expenses for maintaining and operating the canal, its sanitation, and civil government, the estimate includes $710,000 for completing the new power plant at Miraflores, $400,000 for improving the Gatun-Colon water system. and $35,000 for improvement and repair of the Panama water supply system. This net increase of $1,981,711.79 includes increases from $170,588 to $251,940 for salaries and expenses of the Free Public Library, which provides for an increase in the number of employees from 100 to 123; from $161,622 to $214,064 for contingent and miscellaneous expenses; from $1,072,000 to $1,154,500 for sewers; from $1,365,000 to $1,437,000 for street cleaning and the collection and disposal of city refuse, which also provides $40,000 for the purchase of square 739 on which the present garbage transfer station is located; from $696,860 to $765,628 for the electrical department due to the proposed increase in the number of installations and the modernization of the present street lighting system; from $7,342,715 to $7,865,271 for the operation of the public schools due to automatic increases in salaries under the act of June 4, 1924, and an increase in the number of schools for 1926; from $1,242,500 to $1,320,000 for public school buildings and grounds, which provides $50,000 for improvements and addition to the Armstrong Technical School, $50,000 for an addition to the site for the John R. Francis, Sr., Junior High School, $175,000 for beginning construction of that school, $125,000 for an addition to the Macfarland Junior High School, $145,000 for an addition to the Bruce School and site therefor, $475,000 for a junior high school in the northeast section near the Taylor School, $140,000 for an eight-room school near Fifth and Buchanan Streets NW., and $160,000 for an addition to the Brightwood Park School and site therefor; from $2,655,877 to $2,715,680 for the police department, which provides for the salaries established by the act of May 27, 1924, and $71,500 for the purchase of a site and the erection of the Thirteenth police precinct station house; from $400,000 to $450,000 for the policemen and firemen's relief fund; from $240,340 to $246,350 for the health department; from $651,044 to $673,524 for the courts and prisons; from $2,614,890 to $2,804,170 for charities and corrections; from $45,540 to $50,450 for the militia: from $528,250 to $618,480 for improvement, care, and lighting of public grounds; from $75,000 for the Rock Creek and Potomac Parkway Commission to $600,000 for the new National Park Commission; from $148,237 to $156,000 for the National Zoological Park; from $1,525,100 to $2,500,000 for increasing the water supply; from $1,196,860 to $1,222,210 for the expenses of the water service department payable wholly from the revenues of that department; and reductions from $2,994,270 to $2,510,238 for improvement and repair of streets, including street construction, involving a reduction from $925,000 to $722,500 in the estimated gasoline tax; from $165,570 to $147,600 for playgrounds, due to items aggregating $21,300 for the purchase of sites in the 1925 appropriation; from $2,058,330 to $2,023,160 for the fire department, which provides for the salaries established by the act of May 27, 1924, for an increase from 690 to 841 in the number of officers and members, and for the purchase of one aerial hook and ladder truck, four pumping engines, two combination chemical and hose wagons, and two automobiles, the net reduction resulting from $118,000 for houses and sites included in the 1925 appropriation; and the omission of $300,000 for interest and the sinking fund on the funded debt of the District of Columbia, the sinking fund being sufficient to liquidate all outstanding bonds which matured August 1, 1924. INTEREST ON THE PUBLIC DEBT Estimated expenditures for 1925, revised, as shown in the 1926 Budget_ Reduction... $865, 000, 000 35, 000, 000 The reduction in the estimated expenditures for 1926 below those shown for 1925 is due to the continued curtailment of the outstanding principal of the public debt. RETIREMENT OF THE PUBLIC DEBT REQUIRED TO BE MADE FROM Estimated expenditures for 1925, revised, as shown in the 1926 Budget Net increase $471, 806, 401 484, 766, 130 12,959, 729 This net increase of $12,959,729 includes increases from $310,000,000 to $323,175,000 in the cumulative sinking fund in conformity with the requirements of law that the appropriation shall be increased each fiscal year by the amount of interest which would have been payable during that year on the debt redeemed through the operation of the sinking fund during such year; from $23,045,000 to $24,056,800 for redemption of bonds received as payments of principal of war loans by foreign governments as the result of refunding operations; and reductions from $6,000,000 to nothing for redemption of bonds and notes received in payment of estate taxes, due to the fact that the bonds which it had been anticipated would be received for the purpose are now above par on the market and consequently are not likely to be used in liquidation of estate taxes; and from $6,000,000 to $500,000 for obligations retired from Federal reserve bank franchise tax receipts due to decreased earnings of the banks. Appropriated for 1925. Budget estimate for 1926 Net increase_ POST OFFICE DEPARTMENT $613, 645, 195. 25 23, 730, 809. 75 The cost of the Postal Service increases from year to year coincident with the growth of the country, and in general the increases in the Budget estimates are due to the larger volume of mail to be handled and the expansion of postal activities. The net increase of $23,730,809.75 includes increases from $975,000 to $1,150,000 for printing and binding; from $46,000,000 to $46,600,000 for compensation of postmasters; from $124,937,100 to $130,000,000 for clerks and other employees in first and second class post offices; from $5,759,150 to $6,200,000 for watchmen, messengers, and laborers; from $14,416,600 to $15,175,000 for rent, light, and fuel; from $925,000 to $975,000 for miscellaneous items at first and second class post offices; from $87,398,000 to $92,000,000 for city delivery carriers; from $4,400,000 to $4,650,000 for allowance for clerks at third-class post offices; from $980,000 to $1,050,000 for car fare and bicycle allowances; from $6,100,000 to $7,600,000 for special delivery fees; from $104,450,000 to $113,000,000 for railroad transportation: from $47,400,000 to $49,500,000 for salaries of railway mail employees; from $1,150,000 to $1,222,000 for miscellaneous expenses, Railway Mail Service; from $7,500,000 to $8,500,000 for foreign mail transportation; from $40,000 to $100,000 for indemnities on international mail; from $900,000 to $950,000 for stationery; from $1,303,500 to $1,600,000 for post office equipment and supplies; and from $500,000 to $600,000 for labor saving devices; and reductions from $600,000 to $500,000 for transportation and delivery of equipment, material, and supplies; from $2,750,000 to $2,600,000 for airplane mail service between New York and San Francisco; from $2,775,000 to $2,675,000 for travel allowances of railway postal clerks; from $8,100,000 to $8,000,000 for manufacture of postage stamps, postal cards and stamped envelopes; from $4,500,000 to $4,000,000 for indemnities, domestic mail: from $518,500 to $470,000 for twine and tying devices; from $1,960,000 to $1,800,000 for manufacture of mail bags and equipment; from $12,900,000 to $12,800,000 for star routes, and from $89,250,000 to $88,200,000 for rural delivery service. As against the increase in Budget estimates for 1926 of $23,730,809.75 it is now apparent that certain items of appropriation for 1925 will be insufficient for the needs of the service for that year, and that estimates for supplemental appropriations aggregating over $8,500,000 will hereafter be presented. If these are approved and transmitted to Congress, the increase in the Budget estimates for 1926 over the appropriation for 1925 will be reduced to approximately $15,230,000. The revenues of the Postal Service for the fiscal year 1926 have been estimated conservatively at $647,410,000. The Budget estimates for that year contemplate expenditures of $637,376,005. On this basis there should be a postal surplus in 1926 of $10,033,995. a Recapitulation of Estimates of Appropriations for 1926, and of Appropriations for 1925, by Departments, etc. Recapitulation of estimates of appropriations for 1926, and of appropriations for 1925, by departments, etc.-Continued Salaries and general expenses. Permanent specific appropriation- National Forest Reservation Commission. Indefinite appropriation-- Refunds to depositors, excess of deposits, national forests funds. Roads and trails for States, national forests funds. Payments to States and Territories from the national forests funds.. Payment to school funds, Arizona and New Mexico, national forests funds. Total under Forest Service.......... 7, 475, 704. 00 1, 775, 246. 00 11, 307, 047. 00 2, 343, 192. 00 738, 000. 00 7, 527, 780. 00 1, 758, 368. 00 11, 328, 803. 00 2,025, 035. 00 6, 226, 761. 00 5, 994, 651. 00 1, 071, 150. 00 3, 000, 000. 00 11, 122, 871. 00 10, 065, 801. 00 3, 800, 233. 00 8, 138, 915. 00 5, 000, 00 75, 000, 00 523, 000. 00 1, 307, 750. 00 1, 800, 000. 00 50, 000. 00 11, 899, 665. 00 3, 687, 924. 00 458, 115.00 6, 781, 489. 00 25, 000, 00 75, 000, 00 590, 500.00 1, 240, 250. 00 1, 800, 000, 00 50, 000, 00 10, 562, 239. 00 |