The New York herald., 1871-11-08
Bookkeeping and Disbursing


Departments Bookkeeping and Disbursip.
Omcers.
The fact that Major Hodge, the defaultinu
army paymaster, was able to continue his
peculations from the funds committed to his
hands for long series Of years has a new
interest in view Of General BalIoch's mora
recent irregularity. In the latter case the
disbursing officer Of the Freedmen's Bureau
invested two hundred and fifty thousand
dollars Of government funds in fye-twenty
bonds, and surprised the officials who wero
examining into his accounts with the informa-
ton that the United States had been making
money out of their own securities. But when
1t is remembered that Balloch grew rich very
rapidly, according to General Howard's
account by keeping q boarding house, it
seems plain enough that the missing coupons
on these bonds probably went into other
pockets than Of persons who had bought and
paid for them with their own money. II the
truth could be got at 1t would be found that
many other officers besides Hodge and BaHoch
have been using public money for their own
purposes, and the only difference In the guilt
of the two men is in this, that the one lost by
speculation in Wall street and had nothing
with which to make good his accounts when
the day Of reckoning came, while the other
quietly Cut off the coupons, reaping the inter-
est for months and perhaps for years, and
still had the full amount charged against him,
ready to be turned into the Treasury
WhaD caIlad Tod
nearly every disbursing officer who resigns
from the service retires with large sum Of
government funds In his hands, and, owing to
the remarkable system Of bookkeeping en-
ployed in the departments at Washington aud
the small clerical force allotted for these cir.
cumlocution Offices, he Is able to retain it for
two years after his resignation has been
accepted. This is done habitually by retiring
disbursing officers, and it would create surprise
in Mr.. Boutwelps bureaus if one of them
should offer to turn over to the Treasury, by
means Of cover warrant, the funds which he
knows to be in his hands previous to the settle
ment Of his accounts by the department.
The act of Congress of June IA, 1866,
clearly regards all these offences as embezzle-
ment, and prescribes for them the punishment
Of felony. Under the law the case Of Major
Hodge was not worse than that Of General
Balloch, and the cases of retiring disbursing
officers to which we have just alluded are as
clearly criminal as either Of these. And yet
because Hodge did not have o balaucs at his
bankers to turn over to the Treasury he was
sent to the Penitentiary, while Balloch carried
General Schriver to the vaults Of safe
security company and showed him not only
| the full amount in government securities, but
crying, 'Lord, thy pound hath gained ten
pounds" But any commentator which
he conld have received would have
been the commendation Of the august
steward. and Secretary Bslknap did well ia
dismissng him from the service. And yet it
is doubtful if Balloch and the other disbursnQ
| officers of the government who trife. so far aa
the government Is concerned, with the funds
placed in their hands are as much to blame az
the manner Of keeping accounts at the
Treasury Department Major Hodge alwaye
stood honestly charged in his reports to the
Treasury Department with every cent he had
ever received, and yet he had squandered hall
million of dollars in speculation, and
might have squandered million but fol
an accidental discovery. General Balloch
| might have gone on for years cutting Of
coupons from securities bought with govern
! nent money If the Hodge defalcation had not
stimulated o little unreasonable" inquiry.
Probably hundred officers are to-day guilty
Of felony under the very act Of Congress on
which Hodge was found guilty of embezzle-
ment, but with their accounts always unset
tied while in Office and for two years after
leaving the service, it is impossible to detect
their crimes so long as the present system
prevails. Now only an accidental suspicion
leads to the unearthing of Irregularities, and
| public officer has more opportunities to steal
and escape detection than even the most ex-
!! pert pickpocket or bank robber II they
have been prudent as Balloch was they may
not only escape punishment when the day Of
settlement comes, but be able TO say, like him.
"Lord, thy pound hath gained ten pounds
Here is the opportunity for the civil service
reformers. Instead of wasting their time 10
devising system Of competitive examinations
for people who want to bury their talents in
the napkin Of Treasury clerkship the Civil
Service Commission, which is soon to meet In
Washington, would do much better in pre-
pairing a bill to abolish the circumlocution
office. 1t would be no easy task, we admit,
and could be better performed by some of the
intelligent and active young clerks in the
fections of the present system, than by the
excellent but inexperienced gentlemen who
sign themselves secretaries and st In the
Cabinet councils or by the political fossils who