Harding said it was estimated that through proper readjustments there would be a surplus of postal revenues over expenditures in 1924 amounting to $962,439. For this year, postal costs are placed at $559,996,841, or an estimated deficiency of $31,502,570, compared with an actual deficiency in the last fiscal year of $64,824. The 1924 costs are given at $346,234.

The president told Congress that an appropriation of $256,652,887 recommended for the army would provide a regular force of 12,000 officers and 125,000 enlisted men, exclusive of the Philippine scouts, which is strength now authorized by Congress and would enable the militia bureau to increase the strength of the national guard from 160,000 officers and men to 215,000 officers and men. Of the army air service $12,871,500 is proposed or $23,600 less than appropriated this year. Mr. Harding said this sum would permit the service of operating efficiently in accordance with existing policy.

For the navy $289,880,993 is asked. This amount, the president asserted, would provide for the present enlisted personnel of 86,000 men; maintain all present ships in commission and make provision for continuing all new ship construction in private owned yards, except for reduction in speed of construction on three light cruisers. 