Surplus

When the Federal Government balances its books for the fiscal year 1926-27 (ending June 30), it will have a surplus of $599,000,000. So said President Coolidge last week, addressing Federal bureau heads in the semi-annual budget meeting. The President also predicted a 1927-28 surplus of $338,000,000. Feeling that the present surplus "is of doubtful value" as a guide to the future, the President gave warning that tax reduction should not be based on the returns of one year alone, also exhorted his hearers to continue the practice of economy. "Extravagance," said he, "may bring momentary pleasure and apparent benefit, but it creates a condition which is bound to affect the future adversely. ... I do not hesitate to say that one of the greatest safeguards of this nation, financially, socially and morally, lies in constructive economy in government."

General Herbert M. Lord, Director of the Bureau of the Budget, next addressed the meeting. He told five humorous stories: one about a Scotsman and an Irishman, one about a Negro and a Negress (Rufus and Narcissa), one about a Negro preacher with a fondness for long words, one about a fish too big to be true, one about a man who said that a church service "beat the devil." He also inaugurated the Loyal Order of Woodpeckers, whose members will dedicate themselves to performing small but frequent economies, and "whose persistent tapping away at waste will make cheerful music in Government offices and workshops the coming year." He concluded his address with the following poetical quotation from Nancy Byrd Turner:

Who loves his country will not rest

Content with vow and pledge alone,

But flies her banner in his breast

And counts her destiny his own--

Not only when the bugle plays

Stands forth to give his life for her,

But on the field of common days

Is strong to live his life for her,

He is not satisfied to claim

As heritage, her power and fame,

But striving, gains the right to wear

The shining honor of her name.

Observers agreed that the surplus would result in tax reduction at the next congressional session. Some predicted a reduction of $200,000,000; others of $300,000,000; still others of $400,000,000, with the $300,000,000 figure being most widely held,