White House Statement on the Economy Conference With Post Office Department Officials.

THE CONFERENCE this afternoon was devoted to consideration of methods of reducing expenditures below appropriations. The result of the drive last year to reduce expenditures was reviewed, as were plans for reducing expenditures during the next year. The discussion covered the activities of each branch of the Post Office Department. It was preliminary to a second conference held tonight.

At the afternoon conference the difficulty presented itself of reducing expenditures and at the same time not discharging any employees. The heads of the various departments of the Post Office Department reported that representative employees in many sections of the country have indicated they would be glad to make their contribution to reducing expenses by deferring increases in salary. They feel that they are performing a real and patriotic service in so doing.

Post Office Department officials said there would be no reduction in pay in any particular; neither is it proposed to reduce the number of employees except through death and natural separation from the service.

It is expected that the conference tonight will develop figures, in which event they will be made public tomorrow.