White House Statement on Economy in the Post Office Department.

A COMPREHENSIVE program to increase efficiency in the Post Office Department and to effect economies was formulated at conferences in which President Hoover, Postmaster General Brown and Assistant Postmasters General Coleman, Glover, Tilton and Philp participated over the weekend. A review of the drive for economy which the President instituted last summer revealed a saving for this year of about $38 million out of the appropriation of $843 million made for the year that ends June 30. Minute study was made of the obligations confronting the Department for the next fiscal year.

The appropriation for next year is approximately $841,500,000. Officials reported that enactment by Congress of the law reducing the working week in all branches of the service from 48 to 44 hours would of itself obligate the Government to an additional expenditure of about $13 million, making the total of approximately $854,500,000.

They advised the President, however, that studies already made indicate preliminary reductions for next year of $28 million, or a total of $826,500,000. Thus it is probable there will be a net saving of $15 million under the original appropriation, the additional cost of the shorter workweek to the contrary notwithstanding.

Further examination of possible economies was outlined at the conference with the results to be considered later. The total will be enhanced beginning next year when the building program will begin to offset the great rental charges. In effecting the savings there will be no decrease in personnel excepting only as develops through natural changes incident to death and resignations. It was emphasized that the economies are no wise at the expense of dismissals from the service or through reductions in salaries, President Hoover insisting that there be no economies that would enhance the present unemployment situation.

The Post Office economies would exceed the sums indicated but for the decreased volume of postal business incident to the depression. Because of the business conditions, postal receipts this year probably will be some $58 million below the original estimates. It is noteworthy however, that the receipts for the last month show an increase for the first time since the depression started.

A significant fact developed by the conference is that the postal savings deposits are the largest in history today, totaling $310 million. This is an increase since last July of $175 million, indicating the tremendous increase in savings by the public. The Post Office officials advise the President that the indefensible practice of payment to political organizations for Post Office appointments in some Southern States has been absolutely stamped out as a result of his appointment 2 years ago of committees of leading citizens to pass upon all candidates for such appointments. He was gratified to know that his efforts to end the practice have been successful.