Statement on Economy in Government.

THE PRESIDENT said:

"The most constructive direction for economy in Federal expenditure beyond a rigid reduction of appropriations and the resolute opposition to new appropriations lies in the consolidation of Government bureaus and general reorganization of the Federal Government. I have recommended this reorganization in public addresses, reports and messages to Congress throughout the past 10 years.

"I particularly emphasized this necessity as the basis of constructive economy in my message to the second session of the 71st Congress. I again referred to it in the message to the third session of that Congress, and in my message to the present Congress I again traversed the subject. Some of my recommendations have been carried out, the most notable one being the consolidation of all veterans' activities into the Veterans' Administration. As a result, General [Frank T.] Hines reports that we are saving somewhere from 10 to 15 millions a year in this service alone.

"Outstanding amongst these reorganizations would be consolidation of all construction activities of the Government under an administrator of public works to serve all the departments. Other cases are the consolidation of all merchant marine activities into the Department of Commerce; the consolidation of the conservation activities of the Government; of the public health services, of educational activities and numerous other groups on the same major purpose under single-headed responsibility. Such action would result in the elimination of many expensive agencies and overlap resulting in very great economies. These economies would run into many millions.

"In addition to the actual economy by concentrated administration and elimination of overlap, further great economies would be brought about through the curtailment of the self-expanding capacity of scattered bureaus which could be much better controlled if they were grouped together. It would enable policies in connection with different Government activities to be better developed and better directed.

"The subject is an old one and now that economy absolutely must be the first order in government it is an appropriate time for Congress to take up the question and bring it to conclusion. Such action would comprise a major accomplishment of the present session of Congress."