State Reforms and Betterments The Ohio Budget system has effected savings not in the sense that expenditures of the State government now are less than in 1913 -for they have increased from $1,000,000 to $3,000,000 annually since then-but only in the sense that expenditures each year have been less than they would have been without the budget plan of pruning and scaling down demands of existing State departments with a view both to general economy and avoidance of deficits.

The reforms and extensions which Governor Cox has put through, after pledging himself in campaigns to do so if elected, cost millions. But these additional expenditures always have been met by the normal increase of receipts from existing revenue sources.

School System Reorganized

The Ohio school system, for illustration, has undergone a complete reorganization under Cox's leadership. County supervision has been established, with the State paying half of the salaries of county superintendents. Approximately 1000 centralized rural elementary and high schools have replaced eight times as many one-room district schools, and consolidation is continuing at a rapid pace throughout the State, resulting in a greater aggregate cost but a lower cost per pupil because attendance has been greatly increased. The 1914 school code also required for the first time normal training for elementary teachers and college training for high-school teachers. It introduced agriculture, domestic science, and boys' and girls' club work into. rural schools.

Teachers' Salaries Raised

Salaries of school teachers gradually have been increased from a minimum of $40 a month to a statutory minimum of $800 per school year. The nation-wide shortage of school teachers will be met in Ohio in a year or two, according to the State Superintendent of Public Instruction, who has announced that the normal school attendance next fall will increase from 50 to 100 per cent. Ohio has a new system whereby the State will give financial aid to weak school districts sufficient to guarantee meeting of minimum standards even in districts with the lowest property duplicates. The school reorganization under his three administrations is perhaps the one accomplishment of which Governor Cox is proudest.

GOVERNOR JAMES M. COX

Road Improvement

Notable also are the highway system and compulsory workmen's compensation. Governor Cox in his first term inaugurated a main market and inter-county road system, connecting all principal cities and all counties. The State paid the entire expense of main market road improvement and half of the inter-county road construction. This system now is nearing completion and the Ohio Good Roads Federation, a highway "booster" organization, has announced that it will make an effort to get State aid for purely intra-county roads. While no State work was being done in 1913 the entire Ohio program, State and county, with federal aid, now has grown to $30,000,000 a year. Road improvement must go hand in hand with school improvement, Governor Cox always has contended. Each is both cause and effect of the other.

Workmen's Compensation

Under Cox's compulsory workmen's compensation Ohio system, every employer of five or more persons must pay premiums into the State insurance fund or file bond guaranteeing payment direct to an injured workmen of any award the industrial commission may fix. The system now insures more peo

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ple, collects more premiums, settles more claims, pays more awards, and has more money in its reserve than any similar institution in this or any other country. Since its inception $46,000,000 has been paid into the fund, $24,000,000 has been paid out in awards to workmen or their dependents, and of the remainder approximately $19,000,000 Is obligated and being paid out in weekly inMore than 900,stalments to beneficiaries. 000 claims have been allowed. The number et insured workmen approximates 1,500,000. While former overs were dittered with personal rian suas set new are a thing et the past i Ofe

Offer Cox retoms de: Cri seme in Stem and sensus Že naute nd weede e State legislateR MON-ALISE

posal an emergency fund arising between legislative

On the subject of a fed ernor Cox recently said:

I am persuaded that a mo such as we adopted in Ohio in ments and improvements that be necessary, would go far to lief from our national debt. was adopted in Ohio the subject on the attention of lay thought it had only the consideration years the agitation has proceede federal budget, and the consumm era plan has been delayed, as i eve, not because of any misgi efficiency and economy, but solely that the congressional committees y pewers to appropriate money have ing to surrender them.

Our Ohio experience with the has limitations in its operations wi tution of the State, but so far as it has helped simplify the financial a State, has resulted in a great saving indicates what might be accomplished sults of. painstaking investigation wer of obligated action.

The system in Ohio has saved the lions of dollars a year. During the withstanding the increased expense o ment, we were enabled to keep our fisc on a stable base without increasing t without invoking any new sources of re

A Proposed Constitutional Amena

Perfection never has been claimed Ohio system. Governor Cox himsel izes certain weaknesses in it and is ma fight now for strengthening features, v however, necessitate a change in the c tution. One defect is that, regardles probable income, the Legislature may crease items in the budget (rather the ap priation bill based on the budget) and it i make other appropriations in separate b as it sees fit without regard to prospect

ually showed was quickly cowed into ssion by the military party. It had to between the right and the left, and it itself more afraid of revolution than on. Once it had permitted the old control the military details in its was lost.

other hand, it does not seem to me esult of the recent election there 1 reason for expecting that conrmany will promptly improve. ry, the real fight between the w, between the Prussian and tween democracy and autoctered a new stage. In this pponents are more clearly al conflict is more open. long way from a decision, 1 decision everything deto deal with the German ally next month, when become available. But e preliminary reports, fact would seem to s broken down, that rt government to has substantially ty, while the re

is actually sought es has driven the way from the 's and into the im the result ical deadlock

of the moderates, have gone over to the reactionary parties which repreoid order, the Prussian, the Junker Disappointing as the result will be held in

quarters, it is not low clear that it was

were

evidence

had suffered the militarist; 1 « had then protected the as ist rising was the final

dent Ukrainian

hern frontiers, that is,

...u eastern, by carrying her border east to the Pripet Marshes. Actually, the

rs

lf

S

ple, collects more premiums, settles more claims, pays more awards, and has more money in its reserve than any similar institution in this or any other country. Since its inception $46,000,000 has been paid into the fund, $24,000,000 has been paid out in awards to workmen or their dependents, and of the remainder approximately $19,000,000 is obligated and being paid out in weekly instalments to beneficiaries. More than 900,000 claims have been allowed. The number of insured workmen approximates 1,500,000. While formerly courts were cluttered with personal injury suits, such now are a thing of the past in Ohio.

Other Cox reforms are: Civil service in State and sub-divisions; the initiative and referendum in State legislation; non-partisan judiciary; "blue sky" or securities department; widows' pensions; consolidation of State departments; home rule for cities; nominating primary elections; prison reform. How State Expenditures Are Controlled

The first budgetary appropriation bill repealed an existing appropriation law. It reduced appropriations aggregating $9,709,288 to $8,762,664, a saving of $946,623.

The Ohio budget and consequently its appropriation law classifies expenditures in two divisions: (1) Operating expenses and (2) Capital outlay (or permanent improvements).

Operating expenses are subdivided into personal service and maintenance. Personal service in turn is divided into salaries and wages, and maintenance into supplies, materials, equipment, contract or open order service, and fixed charges and contributions.

Elasticity of funds within departments is afforded by periodical meetings of a board of control, composed of the Governor (who may be and usually is represented by the Budget Commissioner), the State Auditor, the Attorney-General, and the chairman of the two legislative finance committees. If any new need develops within departments, funds for the purpose may be provided by a fourfifths vote of the board of control. Effort first is made to transfer the needed funds from one classification to another within the department. If no fund within the department has a surplus, and the need is great enough, relief may be granted by the emergency board, having the same membership as the board of control, which has at its dis

posal an emergency fund for contingencies arising between legislative sessions.

On the subject of a federal budget, Governor Cox recently said:

I am persuaded that a modern budget system, such as we adopted in Ohio in 1913, with refinements and improvements that time has shown to be necessary, would go far toward bringing relief from our national debt. Since the budget was adopted in Ohio the subject has pressed itself on the attention of lay thought where formerly it had only the consideration of experts. For years the agitation has proceeded in behalf of a federal budget, and the consummation of a modern plan has been delayed, as most people believe, not because of any misgivings as to its efficiency and economy, but solely from the fact that the congressional committees vested with the powers to appropriate money have been unwilling to surrender them.

Our Ohio experience with the budget system has limitations in its operations with the constitution of the State, but so far as it has gone, it has helped simplify the financial affairs of the State, has resulted in a great saving, and clearly indicates what might be accomplished if the results of. painstaking investigation were the basis of obligated action.

The system in Ohio has saved the State millions of dollars a year. During the war, notwithstanding the increased expense of government, we were enabled to keep our fiscal affairs on a stable base without increasing taxes and without invoking any new sources of revenue.

A Proposed Constitutional Amendment

Perfection never has been claimed for the Ohio system. Governor Cox himself realizes certain weaknesses in it and is making a fight now for strengthening features, which, however, necessitate a change in the constitution. One defect is that, regardless of probable income, the Legislature may increase items in the budget (rather the appropriation bill based on the budget) and it may make other appropriations in separate bills as it sees fit without regard to prospective

revenues.

In his 1919 message to the General Assembly, a Republican body, the Governor urged submission to the people of an amendment to the constitution providing that the Legislature shall have the right to diminish any item in the executive budget by majority vote or to strike out any item; that, however, it shall not be privileged to increase any item or to add a new one unless it makes legislative provision for sufficient revenue to meet the added cost.

Such an amendment was not submitted. Unless it is done by an early legislature, adherents of Cox in Ohio say it may be undertaken by initiative petition.

I. THE GERMAN ELECTION

BY

Y far the most important event in the past month has been the German general election, the second since the downfall of the imperial régime. As I write this article only the early returns from the polls are in and the complicated counting system promises considerable delay in making up the official statement. Yet the significant fact is set forth in the partial returns with all sufficient clarity that the more or less moderate group, which dominated in the National Assembly, has opened to the right and to the left. The extremists, revolutionary on one side and reactionary on the other, have won.

Before analyzing the early returns it is essential to establish clearly the meaning of the tremendous overturn. For whether the coalition government just squeezes through or goes down in complete ruin there is no mistaking the fact that the change in popular sentiment witnessed by the votes has been enormous. Unexpected it was not, yet despite the probabilities the world in general hoped that Germany would still cling to the régime chosen more than a year ago, as the best promise of rehabilitation.

What has happened has been the repudiation by the masses of laboring men, by the working classes, by the radicals generally, of the Majority Socialists, who constituted the largest single group in the German National Assembly, and a corresponding repudiation by the bourgeoisie of the Democratic party, which represented the idea of progressive but not radical democracy. The mass of the Socialists have gone over to the extreme left. The Independent Socialist faction, a vast number of the moderates, have gone over to one of the reactionary parties which represent the old order, the Prussian, the Junker spirit.

Disappointing as the result will be held in many quarters, it is not less clear that it was July 4

inevitable. Events like the Kappist rising may have accentuated the pace of the disintegration of the Majority Socialists, but it is not less evident that this Majority Socialist party was always doomed, because it lacked both the courage and the conviction necessary to champion the radical views of the mass of its membership.' During the war the men who now lead the Majority Socialists accepted the will of the Junkers and Militarists without question. They voted the military credits; they supported the most extreme military measures. They accepted the annexationist program of the Ludendorff group.

When the war was lost and the revolution broke out, the Majority Socialists came to power, but they promptly turned to the right, to the reactionaries, for their support. Noske's army, which put down the real revolution in Germany, that of January and February, 1919, was officered by representatives of the old system. Indeed, the sole foundation on which the Majority Socialists, the Ebert Government, undertook to build was that supplied by the old army. It passively tolerated the murder of Rosa Luxemburg, Karl Liebknecht, Kurt Eisner, and scores of only less conspicuous leaders who during the war had dared to challenge the army group and after the defeat had sought to achieve a real revolution by sweeping the old order out of the positions which it still retained under Ebert.

Henceforth there was the feud of blood between the two Socialist factions. To the men who followed Liebknecht, to the men who after all honestly represented the democratic spirit in Germany, that is, in its more radical form, Ebert, Bauer, the whole of the new régime were traitors to the Socialist cause who had consented to and connived in the murder of their fellow Socialists, who had suffered the militarists to assassinate and had then protected the assassins. The Kappist rising was the final evidence for the mass

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