The Sun.
London, England, 1829-06-16 00:00:00

PUBLIC. ACCOUNTS.

EXTRACTS FROM THE REPORT OF THE COMMIS.
STONERS, MADE TO THE TREASURY, AS TO THE
MODE OF KEEPING THE PUBLIC ACCOUVIS,.AND
WHICH COMMISSION RESULTED FROM THE FINANCE
:11111:11:0SSuig011:611%S.:
COMMITTEE OF 1828.
In the course of the Prefitory Remarks, the
C 0
consideriVl
r'rr Ct.hl3at ther'l ce.
S. Heitz, •
tern of account most proper to be adopted. in
each department must depend,
nt lac t-
sure, upon the nature, whether s:niple or coin-
picx ()fits pecuniary transactions, we were
never-
theless sensible that there were certain fixed
principles, without which no sv:-.tetn could be
deemed solid and effectual ; triat these indis-
pensable qualities, apPlicable to the accorna:s of
every department, were acattertu,
and perspicuity; in addition to which, w.e cot:-
sidered that, in the various publie accounts,
embracing the large receipt and expenditure of
an extensive Government, it was no less neces-
sary' that there should exist a general nnifi)cinity
of system, a
,fizeifity 01. examination, and a
ready means ofaffbrding iqfirmatioa on cyci y
transaction the accounts involved.
To the luerbantile stern of account, to which
our attention is particularly drawn, we attach the
highest value.
As a science it cornea to us with the, powerful_
recommendation, not only of long experience.
but of high authority ; those engaged in tba
active pursuits of life, and _of thOae: Who hay:*
surveyed its concerns with the eye of Oily-
sophy. It is the declared sentiment or Ofl `-A
the most profound observers of human n'i;:irs.
" that the counting-house of an accomplished
merchant is a school of method, where the great,
science may be learned of ranging particulars
under generals, of bringing the difFerent parts of
a transaction together, and of showinz at one
view a long series of dealing and exchange.-..-
Let no man (continues' Dr. Johnson) "venture
into large business while he is ignorant •cif the
method -of regulating hooks ; never let' him
imagine that any degree of 'natural abilities gill
enable him to supply this, deficiency, or pre-
serve a multiplicity of affairs from inextricable
confusion.' •
The Italian mode of book-keeping by doubig
entry. affords, unquestionably, valuable facilities
for unravelling and elucidating complex or intri-
cate accounts ; and, although' it may not be ad-
visable to employ it in its exact mercantile form,
but in a manner (as will bet caller be explained )
more immediately suited to the business and du-
ties of the offices of Government, we are never-
theless satisfied that no person, without a know-
ledge of its principles, cats be deemed a good and
perfect accountant.
With this conviction of its :advantages af-
folding a clear view, and in furnishing a founda-
tion for every correct system of book-keeping,
we think the knowledge of it should be twist-
tiered an indispensable qualification of every can•
didate fur a situation in the offices of account in
the great departments of Government.

We think it right to point out one differenoi
which exists in the accounts of Government asp
compared with those. of a merchant.
A merchant widers his account, of reeeipts
and disbursemen4s,,,during any year, as belonging
to that year; but the accounts of Government
are frequently wanted, as far as they can be_pre-
pared, in twoshapes: Ist,' As an account of re-
ceipt and . expenditure within the' year, for Alte
I purpose of striking a balance at the end of the
period, as an account current; and, 2dly, Ax an
account of the receipt and expenditure for tir
belonging to, a particuhr year, for the purpers
of comparing the expenditure with the estimate-
for the same year. . . .
In looking to an accordance in the public ac-
counts, a difficulty •at the outset immediately
presents itself; owing to the different periods at
which each department considers the years. as
terminating. : in the Exchequer accounts, the
Revenue accounts, and the Consolidated Final
,account, the. old style is observed, and the:year
1 ends on the sth of January ; in the Irnv- _ ..
~ ..
ac-
counts the new style is nearly, though . not.. ex-
actly', adopted, and the year terminates on the
24th of December .; and 'in the Navy and Ord-
nance accounts, the year is reckoned from the Ist
ofjanuary to the 31st of December.
The accounts of each department so prepared
may be .perfectly -correct in themselves, but for
the purpose of a general accordance, and. for
combining them in one complete account, it is de-
sirable that they should all begin and end at the
same tune. . , . . .
The payment of seamen's wages, on ship;
books, is a branch of the naval 'expenditure,
which appears to have been always considered as
involved in considerable difficulty.
Inconveniences- of -the most serious kind grew
out of this.systetn.
The first was, that the Treasurer usually,.con-
tinued during the time to hold a large balance of
the public money in his hands. The second was
of a more extraordinary kind. It is observed in
the Third Report of the Commissiotters on
Public Accounts in 1781, • that it was possible
for a Treasurer of the Navy, retiring from ace
in ill-humour, to stop the payment for eight
mouths, or more, of teainen unpaid en the
numerous volumes of ships' hooks.- open at the
several ports in his treasurership. And an in-
stance is recorded, in the case of Sir Joint litn,h-
out, when this actually took place.
The payment of the wages to a ship's cre-iv is
(now) made on board of ship, and is completed
in respect to those present, on the .seine day ;
but the'names of other seamen are often on the
.books, who have quitted the . ship, either by
leave, by transfer, or on account of sickness, and
who may subsequently prefer their claims for
wages on the same book, which is kept open -for
that purpose. . • . •
. .
..

As connected with the Naval ILxpenditure, it
was our duty to make the account of Greenwich
Hospital a part of our report, and at an early pe-
riod of our proceedings we • applied for returns
from that department, &c.
We learned, however, that in consequence 01
the deranged state in which Mr. Austen had left
the books, we could not receive for some time
the returns we desired; and so late as the 15th
December we were informed that arrangements
for the future system of conducting the business
of the Hospital were not finally settled.

The first and most material want is a syste-
matic arrangement of the general accounts, not
in exact conformity with the practice of mer-
chants, or of other individuals employed, iu -the
various pursuits of private life, which differ iii
many essential points from the business of the
departments, but specially devised for-the use
of the public offices. The principles upon
which accounts ought to be regulated are, how-
ever, in all cases the same. Simplicity of ar-
rangement, and the exclusion of every thing un-
necessary, or cakulateil to prmitree mystefy -and

obscurity, are indispensable for the due regulation
of accounts of all descriptions.
On the decease of the late Treasurer to this
Establishment (Greenwich Hospital), it was dis-
covered that some very criminal irregularities, in
which the first Clerk, who acted in the capacity
of Deputy Treasurer, was implicated, had taken
place in the course of a series of year: ; and on
investigating the circumstances, it clearly ap-
pealed that the abuses were mainly attributable
to the facilities afforded to the dishonest agent,
hy the adoption of a defective system of account.
The accounts of the defaulter were committed to
the scrutiny of a professional accountant (Mr. Ab-
bott), and the same individual was employed to
devise a new plan for accounting for the 'future
receipts and expenditure. We had no intimt,
Lion whatever from Mr. Abbott, although at the
time associated with us in the task of inquiring
into and suggesting improvements in the mode
of keeping the public accounts, or from the direc-
tors, of the intention of immediately introducing
in this establishment a new system of book-keep-
ing, so as to enable us to submit our opinion
mipon the subject, or to contribute our assistance
during the process ; and on our visit to the
Hospital we found the reformed sVatem already
in operation. .
This arrangement is strictly conformable to the
Italian or mercantile method, and appears to
have been hastily adopted with 'reference to the
usages of counting-houses, or from such models
as are contained in the elementary treatises on
book-keeping.

The present Deputy Treasurer (Mr. Paine)
is already *so sensible of the difficulties in which
the 'l7;fatigement is likely to involve him, that he
nas determined on keeping a separate ledger
upon a more simple and intelligible plan, for his
own information and guidance, thus commie.-
Ling a this early stage of the proceeding the re-
.
newal of the former inconvenient practice of
opening new books to supply the deficiencies of
the old ; and that it is an acknowledged part of
the arrangement to revert to the assistance of
the professional accountant when the time shall
arrive for closing the annual accounts.