Evening star. [volume] (Washington, D.C.) 1854-1972, 1895-02-05
Assistant Secretary Hamlin Praises
the Present System.
SOME IMPROVEMENTS POINTED OUT
Change in Making Advances to
Discussing Officers: t
NO SAFEGUARDS REMOVED

Old officials of the Treasury Department
have had much to say about the oppor-
tunities for fraud and acknowledgement
presented by the new system Of account
ing, which was inaugurated as result or
the investigation by the experts of the
Dockery commission. Their view is not in
dorsed by the present authorities of the
department who have supervision of the
work. Assistant Secretary Hamlin has
made statement to the House committee
on appropriations, in which he praises the
results of the new system.
Mr.. Hamlin says that it has been a mat
ter of great surprise and satisfaction that
such radical changes could be made with
so little friction and trouble; that the new
system is already working smoothly, and
that many advantages from 1t have been
made apparent since it went into operation
commendable improvement which he
points out relates to the accounts OF dis
bursting officers. Formerly advances were
made to these officials simply upon requisi-
tions, without any investigation of their
| accounts. but the new regulations do not
allow advances to be made aden unit. a1 their
and the auditors have full evidence to
their new standing.
No Safeguards Taken Down.
Under the new SYSTEM" says Mr.. Ham
lin, mo safeguards of the treasury have
been taken down; on the contrary, the
careful supervision and close check upon
the diSbursing officers of the government
by the auditors affords the greatest pos
sible check on expenditures that can be
devised.
Under the old system there were two
controllers and also the commissioner Of
| customs, who performed duties similar to
those of controller, making actually three
offices doing what might be called control
ler's work. The sixth auditor had final set
tlement OF accounts OF the Post ONCE De-
partment. except upon appeal to the con-
troler, whose decision was final The ac-
counts OF the land office were not settled
by the commissioner of that office even as
an auditor would settle them The law
simply assigned to the commissioners Of
flee the duty of stating the accounts to the
controller for his decision and settlement.
That under the old system there was not
more fraud and peculation has been due
entirely to the integrity of the disbursihg
officers and those intrusted with the funds
of the government as no control over the
accounts CT disbursing officers was then
held by the auditors and controllers.
Advances to Disbursing Officers.
Continual advances were made to dis
bursting officers requested by them by
acquisitions, without any knowledge on the
part of the Treasury Department as to the
status of the officers accounts, notwith-
were charged against these officers on the
books of the Treasury Department. run
ming up Outlines into millions of dollars.
For example, a dsbursing officer In one
instance received an advance in December,
1893, although there was charged against
him on his account, unaccounted for, over
s., ,oO, OtO In the case of accC UNITS for In
dian agents they would lie ir the office of
the commissioner of Indian affairs for n
year before being taken up for examina-
ton; then they would lie in the office of
the second auditor for a year after he had
received them before he could take them
up for examination, SO that 1t would be
over two years before the auditor could
had pc ssed upon them and sent them to the
controller, they would be retained there
possibly another year before the account
could be settled and entered and all this
time regular advances were belng maze 10
the Indian agent.
Ninety per cent of the money that Is
disbursed by the government is paid out
by dishursing agents. A system which does
not supervise and check accurately and
promptly the officer who disburses the
money is not correct system. No amount
of triple or quadruple reViSions could COM
pensate for this great weakness. The sys-
TEN of accounting in the Treasury Depart
ment in times of eXigency, such as our late
civil war, was entirely lax. For example.
the account of paymaster OF the army
stationed at New York was settled Novem-
Der 1. 1867, which included his disburse
ments up to and including December 3,
| 1863, being four years behind in the settle
ment. 1t showed an aggregate amount of
s1GS SIC, 900; and November l, 1867, a bal
ance was brought down and charged
against him as unaccounted for of H42.-
174,0O0.
TT is not claimed that this money was
not disbursed, or that he had not account
| eC for it III some shape to the paymaster
| general, but as far as concerned the ac-
| counting branch of the government, the
4 11xy
uraccounted for. This officer had bond
| of $4,000. The absurdity of the system
could not be better illustrated than by
| this example.
Pnymastcrs' Accounts.
Since that date the accounts of pay
masters have been gradually brought up
so that they are nearer the time of ex-
| penditures than before, but in settling the
accounts of any of these paymasters who
| do any considerable business the balances
charged against them, which is stated as
| the amount they owe to the government,
is often from $500, 600 to $2O00oOO. a sys-
| tenn which would allow these enormous
| balances to accumulate certainly was not
! a system which should be lauded a very
great protection to the government.
IF any corporation or business concern
kept so little supervision over their dis
| bursting agents. people entrusted with
their funds as did the government under
| the old system, there would be ten times
| the amount Of peculation that has existed.
! for the reason that greater temptation
would be offered.
mo system of accounting can be devised
| that will absolutely protect against pos
sible corruption in the administration of
| affairs nor did the system prior to october
| I, 1894, prevent irregularities in the ad-
| n.inistrative branches, secure their de-
| lection by the accounting officers. For in
stance the Burnside frauds, amounting to
| $50, 600, in the Post Office Department; the
| star route frauds, the horse claim frauds
| frauds in the Department of Justice by
| Dsbursing Clerk Ewing, frauds in the
| Navy Department under the law authoriz-
| ing the treasury to indemnify the survivors
of wrecked vessels for the loss of personal
property, the Howgate frauds, and many
! others.
None of these frauds were discovered
| by the controller. but the knowledge OF