The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-10-17
POINTS OUT SERIOUS DEFECTS IN
UNCLE SANS BUSINESS SYSTEM

limited, for direct law lays down rules
in certain places which he cannot
reach.
Government accounting Of course is
In n class by itself. Not always can
II parallel Industrial or commercial
accounting. Hut certain fundamental
principles are common to all classes,
and of these Comptroller Warwick has
become a master.
Right now In connection with his
other duties he is II work as a mem.
Der Of committee appointed by
Secretary McAdoo with instructions TO
make a thorough Investigation OF the
entire Treasury service, both In
Washington and in the field, with a
view to making recommendations for
placing the Treasury Department on
"A more efficient, economical and
modern basis"
THE Government Of the United
States" said Comptroller Warwick
recently in discussing conom and
efficiency in the service, is a complex
orsanization. the result Of growth and
development. That II liz not organized
on scientific lines I think IL now gen.
orally understood. As the need has
arisen new governmental activities
have been assumed. and Jurisdiction
over these activities given to different
departments as expedlency seemed to
dictate. Growing piece by piece, IL 10
but natural that the ed!nce Ia not
harmonious in design, nor well la.
anced.
we are coming to 4 time when
there will he a reorganization and a
readjustment, gradual but none the
less sure. by which the governmental
machinery will operate at a rate Of
greater efficiency. But that time will
not arrive until there Is a public de.
mand for Il. 1t Is evident from the
activity Of the Chamber OF Commerce
of the United States in the matter Of
the budget idea that the demand 10
growing.
A present each n of the ten ex.
%ccutive departments NJ the Govern.
ment il more or less independent of
the others and To a degree Is self-con-
tanned and autonomous. These ten
executive departments spend % per
cent. or the total expenditures of the
Government. the cost Of the legislative
and judicial branches being not more
than . per cent. But each is required
to spend without regard to the others.
Each. under the laws constituting
II. accounts for its expenditures In its
own way. There IL no consolidated
presentation Of all NJ their expendi-
lures. nor can there be under the pres
ent system.
Modern business realizes that w,bs,
IL known as cost keeping is absolutely
essential To an understanding Of the
actual condition Of n business organj-
zati"n. But In our Government. which
is the greatest business Of all. We have
n" method Of hscertaininG unit costs
under the different heads of MAIN
tenance. capital investment. dcprecia-
Ion and the other elements essential
to Il true nnlSsi $ for figures presented
v n department are not comparable
with figures presented by another de-
partmcnt.
When the Government erccts a
pubic building the cost liz set down as
an expenditure and Jumped in with the
othcr expenditures ~ the Government.
n" Terrence being made between il and
an expenditure for paying the army.
But Their" is a radical difference. The
building Is an investment and becomes
an asset. II should show In the assets
and not the liabilities column.
Hence II Is Impossible to make a
showing rs 10 the exact cost If main
t'nnncc Of TN" Government. by main
J tgttAVa, ,,,.,. a..
expenses as differentiated from en-
p'nditdrcs for hetterments which are
assets, :" ono essential OF reform