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PRINTING AND BINDING

Senator REED. Do you want to say something about this item in line 9, page 6?

General CARMICHAEL. On page 6, on printing and binding?
Senator REED. Yes.

General CARMICHAEL. The House reduced the estimate for printing and binding by $25,000. $525,000 was the estimate by the Bureau of the Budget and $500,000 was provided by the House. The War Department is prepared to accept the $25,000 reduction on that item for printing and binding in the War Department, due to the fact that steps have been taken, which were taken previous to the item being reduced, to reduce the cost of printing of the annual report of the Governor of Porto Rico by $5,000, and the printing of the National Guard Register, amounting to approximately $20,000 for the fiscal year 1932.

Hereafter the Register will be printed on a biennial basis expense. This developed in the hearings before the House Committee, and it was brought out by a letter to the War Department, by the chairman of the subcommittee. However, attention is invited to the fact that this item for printing the National Guard Register will reappear in the estimates for the fiscal year 1933, and on alternate years thereafter.

The $25,000 is accepted, as made by the House, under those conditions.

Senator REED. What is the attitude of the National Guard people on that?

General CARMICHAEL. They have accepted it; sir.

The matter was brought to the attention of the Secretary of War by a letter from Mr. Barbour, and was taken up with the National Guard. We were advised by the administrative assistant to the Secretary that the Insular Bureau would accept as to reduction of cost of the report of the Governor of Porto Rico.

Senator REED. They say that they could go on the biennial basis? General CARMICHAEL. I understand that the chief of the Militia Bureau is willing to do that. I have an official statement from the administrative assistant of the Secretary of War to that effect. Senator FLETCHER. So, there is no change in that item? General CARMICHAEL. No change.

MILITARY INTELLIGENCE DIVISION

Senator REED. Well, that brings us to the military items, and I understand on page 7, line 19, military intelligence item, there is something that you want to say to us about that.

General CARMICHAEL. General Moseley will present that.

Senator REED. We will be glad to hear you, General.
Senator JONES. You want the Budget estimate there?
General MOSELEY. Yes, sir.

Senator REED. General Moseley, will you tell us about that?

MILITARY ACTIVITIES, WAR DEPARTMENT, 4Y1932

General MOSELEY. Mr. Chairman, the Chief of Staff, General MacArthur, is confined to his quarters, due to a touch of influenza, and I am appearing here in his place this afternoon.

Before discussing certain changes which have been requested, I would like to make a general statement covering some of the principal items of the bill as it passed the House.

The estimates supporting the bill now before you are fundamentally different from all previous estimates of the War Department. This change is noteworthy, and I believe it desirable that you understand what has taken place. These estimates are based on participating with the President in his effort to prepare a balanced budget, while at the same time reserving to the War Department full initiative and responsibility in the composition and distribution of funds in the estimates submitted. In other words, the Secretary of War first balanced his own budget for military activities at a third of a billion dollars and then, after careful study, prescribed the essential requirements and determined the allocations to support each. The Bureau of the Budget supported the Secretary of War in this policy, and the President transmitted to Congress the War Department's estimates, practically unchanged.

The effect of this policy, so far as the Military Establishment is concerned, is to entrust to the Secretary of War the responsibility not only for the execution of his mission but also for the economies necessary to keep the expenses of its execution within reasonable limits. This proposal, of course, relates to questions of existing policy and does not include new policies involving considerable

expense.

As affecting the Congress, it is accepted that it will always be necessary for that body to scrutinize all items in the bill very closely, to make adjustments to all Federal agencies, for the purpose of insuring general uniformity, and for similar purposes. But, as to the policies and major questions involved, the War Department, the Bureau of the Budget, and the Congress will simultaneously progress toward efficient administration, toward sound planning, and to the avoidance of drastic changes.

The Subcommittee of the House Appropriations Committee made a net reduction of almost $4,000,000 ($3,853,584). More than this amount, $4,829,823, was due to the downward change in price of commodities. At the same time the Appropriations Committee recommended increases totaling $1.281,825, only $615,000 of which was requested by the War Department. On the floor, the House made no change in the amount of money carried in the bill, but did add certain amendments. I will later comment on certain changes desired by the War Department.

I will now briefly discuss the outstanding activities in the esti mates, and call your attention, from time to time, to those projects which are new or important from the viewpoint of the War Department. After that, I shall indicate the changes which the War Department desires the Senate to undertake in the military items of the bill, as compared with the President's budget. The Assistant

Secretary of War, Mr. Payne, will continue in connection with a particular proviso, inserted by the House, which must be ameliorated. The interested chiefs of branches are also present to assist both of us as may be necessary, and to answer any questions as to detail.

MILITARY PERSONNEL

REGULAR ARMY

For the active Regular Army, the bill carries a fund for the same commissioned and enlisted strength as in prior years. There is no change in the Regular Army. There is some increase in the number

Senator REED. You provide for an Army of 118,750 enlisted men? General MOSELEY. Yes, Mr. Chairman. Twelve thousand officers, 118,750 enlisted men, and 6.500 Filipino scouts. There are increases in the number on the retired list. The increase in the number of retired officers is due to normal anticipated retirements.

The House added $615,000 to overcome an underestimate in additional pay 66 for Qualification in arms" by enlisted men. It is now predicted that the estimated receipts due to the purchase of discharge by enlisted men will be less than the amount set up in the bill. I will mention this shortage later.

NATIONAL GUARD

Under the National Guard, the bill provides for an aggregate strength of 190,000 officers and men. The cost of an additional 2,500 is set up in the qualifications without an increase in the total appropriation. Authority ultimately to expand laterally to 195,000 was granted, provided that the entire increased cost be absorbed administratively. There now appears some doubt as to whether the Militia Bureau will be able to put into effect the readjustments originally contemplated. Until assurance is received in this connection, no increase will be initiated and the maximum strength will remain at 190,000.

Senator FLETCHER. How is that divided?

General MOSELEY. On September 30, 1930, the strength of the National Guard was 13,037 officers, 200 warrant officers, and 173,237 enlisted men, or an aggregate of 186,474.

ORGANIZED RESERVES

Under" Organized Reserves," the bill provides for 20,000 14-day trainees, for 130 C. M. T. C. instructors, for 30 days, for 20 detailed to General Staff for six months, 272 airplane pilots for extended active duty. * * .*

Senator REED. One hundred and thirty what?

General MOSELEY. One hundred and thirty officers for 30 days' duty at C. M. T. camps.

Senator REED. How many in the C. M. T. C.?

General MOSELEY. This bill carries 37.500 trainees.

Senator REED. The same as last year?

General MOSELEY. The same as last

year; yes, sir.

Senator REED. Is the appropriation decreased according to diminished costs of subsistence?

General MOSELEY. There has been no reduction for the subsistence allowance of 70 cents per day. There was a change in the appropriation which I will comment on later in my statement.

Senator KENDRICK. This estimate will take care of the demands you have for training in this particular division?

General MOSELEY. Not altogether as to the reserves. I think that we often have more requests to train officers than we can finance, but that always follows. Our demands overrun our financial ability. Senator REED. But this provides for the same number of trainees in the Reserve Corps?

General MOSELEY. Yes, sir.

Senator REED. It is a healthy condition, it seems to me, that there should be a greater demand than you are able to take care of.

General MOSELEY. That is just a healthy condition, Senator. The R. O. T. C. is on the same basis as for prior years.

Senator COPELAND. Pardon me, General.

General MOSELEY. Yes, sir, Senator.

Senator COPELAND. For R. O. T. C. work, are you asking the same as for other years?

General MOSELEY. Yes, sir, practically the same.

Senator COPELAND. Any change made in the House in that item? General MOSELEY. No, sir.

Senator COPELAND. I have had so many telegrams and letters about it, is the reason I am asking.

General MOSELEY. Probably that was in connection with the number of retired officers on active duty with 55c schools and with high schools?

Senator JONES. Most of mine have come in with reference to retired officers on duty.

General MOSELEY. That has nothing to do with the funds for the R. O. T. C., Senator.

Senator REED. That does not affect the R. O. T. C.?
General MOSELEY. No, sir.

In connection with the recent pacifist drive against alleged compulsory enrollment, the War Department is in no way involved. Units are installed only on request. Funds are allotted to instruction institutions in accordance with law and irrespective of whether military training is obligatory or elective. This is exclusively a matter of local determination by the school.

CITIZENS' MILITARY TRAINING CAMPS

The citizens' military training camps appropriation is based on training 37,500 candidates, the same number as in preceding years.

SUPPLY

A word about supply. Before enumerating the other major activities provided in this bill, I wish particularly to stress to you that the War Department's stockage of usable supplies carried over from the World War is rapidly diminishing. The reduction is due to issues and to deterioration. For years these stocks have been a

reservoir which was being drawn upon by the War Department. without the necessity for corresponding appropriations. Now many items are exhausted and the usable remainders of other articles are becoming very small. But, and this I wish to emphasize, the War Department through economies and reductions has provided for financing this ever-increasing load with practically no increase in its aggregate appropriation.

THE RATION

As originally prepared, the estimates were based on a 50-cent ration for the Regular Army, and a 24-cent ration for the Philippine Scouts. Due to the change in the economic condition of the country a reduction in the cost of foodstuffs had to be reported to the House subcommittee. While the House Appropriations Committee stated that the ration value in the present bill is 43.75 cents, the actual funds carried under "Subsistence of the Army" will provide for only a 41.63-cent ration for the Regular Army. There has been no change in the cost of the ration for the Philippine Scouts.

The reduction is accepted. Should the appropriation later prove insufficient, the Congress has amply protected the War Department by the promise of deficiency appropriations.

Senator COPELAND. I should like to be clear about this, Mr. Chairman, because of a letter I have had from Mr. Allyn, of New York, in which he says that the Budget Committee has cut some $500,000 off of the minimum estimate needed for reserves training appropriation. Is that true?

Gneral MOSELEY. No, sir.

Senator COPELAND. That is not true?

General MOSELEY. No, sir.

Senator COPELAND. You have met the same argument?

General MOSELEY. Yes, sir. That question has been asked and explained fully to representatives of the Organized Reserve Association.

Senator COPELAND. Just a moment. So that we may have it in the record, I would like to ask a question or two about it there. General MOSELEY. That will be explained later, Senator. Senator COPELAND. Very well. Excuse me, General.

UNIFORMS

General MOSELEY. As in 1931, this bill carries funds to provide two special measurement olive-drab woolen uniforms; two issued from war stocks for each enlisted man in the United States and China during a 3-year enlistment. Improved cotton uniforms are provided for troops in the Tropics. Under present conditions of pay, the Chief of Staff does not propose to increase the financial burden of the individual by imposing on him the cost of blue uniforms; that is, the officers.

Last year the National Guard completed financing and issuing its new roll-collar uniform, and these estimates provide for its maintenance. In addition, one war-stock uniform is issued, generally free, for the use at drill and in camp.

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