Papers Relating to the Foreign Relations of the United States, 1922, Volume I

837.51/756

The Representative on Special Mission in Cuba ( Crowder ) to the Secretary of State

Habana , April 9, 1922 .
[Received April 14.]

Dear Mr. Secretary: I have the honor to transmit herewith the Memorandum referred to in my Urgent No. 21 of April 8th on the subject—“The Executive and the Budget for 1922–23.”²³ The Memorandum accompanying my despatch of April 5, 1922 was on the subject of,—“Necessity for Legislative Approval of a Budget for 1922–23.”

The working summary of both Memoranda is as follows:—

A. The Government of the United States insists upon:

1. Approval of the Budget for 1922–23 before June 30th next.

2. Limitation of expenditures under that Budget to a maximum of $55,000,000.

3. Inclusion within that maximum, of $5,000,000 for public improvements.

4. Attainment of the reductions necessary through:

(a) Reduction of Fixed Budget,

(b) Repeal of Law of August 9, 1919.

(c) Reorganization of Diplomatic Service, Service of Communications, Army and Navy.

(d) Suspension of Civil Service Law to permit of dismissal of excessive, incompetent or dishonest personnel.

(e) Elimination of all Botellas.

B. The Government of the United States bases its insistence on:

1. Necessity of Congressional cooperation with the President as a necessary demonstration of capacity for self-government.

2. Existence of a floating indebtedness of about $50,000,000, and of an additional deficit for the year 1921–22 of about $15,000,000.

3. Inadequacy of revenues for meeting the situation with a Budget of expenditures greater than $55,000,000, as shown by figures for 1921–22 in which revenues total between fifty-six and fifty-eight millions.

4. Present deteriorated condition of public highways and public institutions, due to insufficient consignments in the present distribution of credits.

5. An expense of maintenance of Legislative and Judicial branches of the Government, and of certain important institutions, out of all proportion to the total expense permitted by the revenues.

6. Existence of unnecessary personnel and sinecures at the expense of the adequate maintenance of public services.

C. The Government of the United States considers it the duty of the Executive to look for the proper solution of the problem:

1. On account of the President’s commitments in the letter of October 16, 1921.²⁴

2. Because of the obvious failure of Congress to properly understand the situation.

3. Because the President is best prepared to understand the situation, and to see that a failure to find a solution will bring responsibility upon both the Congress and himself for financial disaster to the Treasury and for the consequences following a further demonstration of incapacity of the independent republican government to meet the national crisis.

Very respectfully,

E. H. Crowder

23. Memorandum not printed; concluding paragraphs quoted in telegram no. 21, Apr. 8, from General Crowder, supra.
24. Foreign Relations, 1921, vol. i, p. 750.