The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-11-16
Ex-senator Bourne Finds
Treasury Balance Padded
More Than $lOO,OOO,OOO.
NEARLY BANKRUPT,
Is THE CHARGE MADE
Conlmcnds Official Book
keeping to Men Who
Can't Earn Profits.

w.sHr>GroN. Nov. 15.--Thc Re-
publican Publicity Association. of which
ex-senator Jonathan Bourne, Jr.. is
president. recently engaged an expert
accountant to determine jug. what the
balance would be In the United States
Treasury II computed on the same
basis rs 1t was under Republican
Administrations and when the Wilson
Administration came into power.
Secretary McAdoo has made several
changes in the form of the daily Treasury
statement and the Republican associa-
ton charges that he has done this to
conceal the low state of the Treasury's
cash balance.
The exper, finds that ~ the daily
Treasury statement was made up on
the same basis as It was when the
Democrats went into power the balance
available IN the Treasury would be only
S3,jl7,oa7, instead OF s1o9. .000, 900 now
claimed by Mr.. McAdoo.
On the strength of the experts find
ing, President Bourne asserts that the
Federal Treasury when Congress as
Sembles will he practically bankrupt"
for the first time since James Buchanan
turned over the empty Golfers OF the
nation to Abraham Lincoln.
Mr. ROurne's Statement.
Ex-senator Bourne made this state
ment
when Congress assemblies there prob
ably will be no free anC available
Balance in the Federal Treasury--using
these words in the sense which used to
be given to them in the days before Mr.
McAdoo became Secretary of the
Treasury.
Following the changing the form of
the daily Treasury statement IL almost
as exciting a sport the hunting Of
big game. AT the close Of business of
March J, 1913, the first day of Demo-
cratic control of national affairs. the
daily Treasury statement was Issued in
form to which the House had become
accustomed. and 1t showed. to employ
its own langugage, "A working balance
IN Treasury Offices of ss2,210.619. This
represented the surplus which the Re
Nublicans turned over to the Democrats
AT the end of that fiscal year. how
ever. the gifted literary genius who
presides over the destinies Of the strong
box and who has been described as the
most brilliant financier that ever dug
tunnel under the Hudson River. con-
cluded that the hackneyed and conven-
tiona form of the daily Treasury state
ment was too simple and too easily
understood TO be worthy Of the great
mind now directing our financial affairs.
AM pu July !, 1914, the daily statement
wa issued with changed face.
In this form the daily statement af-
fe 'rd 20 show the free and available
balance in Treasury and banks and the
free balance was given as being STA
i3j,14i These are impressive figures.
bu, adding to the psychologist effect
which nine digltH always produce upon
'he ordinary mind the statement went
on 10 give the total cash assets in the
general fund. including Philippines bal
sHyes iu Treasury offices limited tender
or unavailable
"Tuey included silver bullion, sub
sdiary silver coin. fractional currency,
minor coin and all the other chicken
feed. .craps of paper and junk which
the vaults contained, and they rolled
up the eye satisfying total of $303,25O,-
006.
rhc Zenith Reached.
"Mi'h those figures the Democratic
bookkcepers struck their zenith of paper
maHlie- 'ations of national thrift. From
ina moment rapid and steady decline
/ VA recorded and on September |. 49l3.
Only two months after the old form Of
daily -'t'ement had been discarded, an
other "hauge was made and the daily
statement for that date made no mention
OF free and available balance but
cpnteufcd itself with the more elastic
and 'llsIYe presentation of assets and
Nabilit.c- The net balance in the gem
trel fund was then given as $l2',3S6,-
3s7
For Il little more than two years this
form Of statement was adhered to and
VI September 80, 1915. the daily Treas
ur\ -'atement announced the net bal
la".r .u general fund as being Si0.-
$3.50
''u iue following day the daily state
ment appeared with long and some
wiz Involved preface Intended to be
explanatory and In a strikinsly meta
Mophu--l form so far as it's figures
were concerned. Without the addition
o. Jingle dollar to the funds of the
nation With no new sources OF revenue
pouring INTO the Treasury. with no pro-
cs"d- from a bond issue and without
olh"" means of replenishing its dwin-
ding funds the Treasury boasted a net
|> balance Of Sl2s, ,063.545,
What IL Pen stroke Did.
"H' stroke of the pen Mr.. McAdoo
o. -Gt had converted more than SCI, =
O"oUUo of disburslng officers balances
Jtp t. available balance for general
Eplo.N ucmtal purposes and had also
added % the assets column funds which
sre distinctly earmarked for specific
purposes and which are in no sense Ia
be used for amy object except the fiduci-
a.y ends FOR which they were given In
" 'ir.r place into the custody OF the
Treasury
'SJN what dazzled by this piece OF
fntu al legerderman of our modern
JON Law, ! took early occasion to write
70 NJ, McAdoo TO expose the confusion
INTO which his novel method of book
Foerb.f had thrown me and ! asked him
" be good enough to tell me how the
Treasury balance would appear II St
bad 'e'tinrd the old form OF statement
A'lrr rpnsidcrable delay l received ar
snsw"" ,hc literary styl" Of which cor
rt'r1.'~ TO the elaborate preface to tht
us ~ le new forms of Treasury state