The Washington times., 1915-11-15
Asserts U. S. Strongbox virtu.
ally Is Bankrupt" for First
Time Since Buchanan.
sTATEMENT'SF0RM CHANGED
Criticises Alleged Efforts To.
ward "Paper Manifestations
Of Thrift"

~ assert that the Federal Treasury
when Congress meets, will he found
practically bankrupt-for the FIRST
time since James Buchanan turned
over TO Abraham Lincoln the empty
Golfers OF the nation"
This Is the assertion made today by
Former Senator Jonathan Bourne oi
Oregon. president OF the Republican
Publicity Association. in an alalysis OF
tho Treasury statement and Treasury
conditions.
Senator Bourne seeks to show that
when Congress assemblies there will
probably be no free and available bal.
ance" In the Treasury II the words are
used In the sense they were used be-
Of the Treasury.
Alteration In Statement.
Mr.. Bourne attacks the action - the
Treasury In repeatedly changin> the
form. OF the statement. He maintaints
these changes have been made to
achieve paper manifestations of ma
tlonal thrift"
One OF the things he especially criti-
cises Is the action Of Secretary McAdoo
In converting. BY stroke of the pen.
more than S6l coo. 900 Of disbursing Of
ficers balances into an availa lie bal
ance for general governmental pur-
poses" He says Mr.. McAdoo SO had
added ITO the assets column funds
which are distinctly ear-marked for
specific PURPOSES and which are in ne
sense to be used for any object except
the fduciary ends for which they were
given In the first place into the custody
of the Treasury"
that the Treasury Department has been
Juggling with the figures at Its COM
mand In order to produce an unwar-
ranted impression Of affiuence.
Accountant Consulted.
He sets forth the statement Of a certi-
fled public accountant. Harvey 8. Chase.
Of Boston. to show that II the daily
Treasury statement had been made up
October g. as 1t was made up August =.
1913, the available balance would be ex-
hibited as only $3.ol7.U27. instead Of =
much heavier sum. as the statement In
dicates and In contrast with the sur
plus the Republicans turned over to the
Democrats at the outset Of the Admin
istration. Senator Bourne says In part:
IF Glowing the changing form OF the
daily Treasury statement Is almost as
exciting a sport as the hunting of big
game At the close Of business on
March 8. 1913, the first day Of Demo-
cratic control OF national anairs, the
daily Treasury statement was Issued In
accustomed; and II showed. to employ
its own language. a Working balance
in Treasury Offices of So. S2.2lO.6ls.s7. This
represented the surplus which the Re-
publicans turned over to the Demo-
Gratis.
Called Literary Genius"
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 a tunnel under the Hudson river.
concluded that the hackneyed and con-
ventional form OF the daily Treasury
statement was too simple and too
easily understood to be worthy OF the
great mind now directing our fiscal af-
fairs; and on July !. 1918. the daily
statement was issued with changed
face"
After describing chnges made in the
form Of the Treasury statement, Mr..
Bourne continues:
For a little more than two years
this form OF statement was adhered
to: and on September 80. 1915. the daily
Treasury statement announced the
net balance In general fund as being
$40 SSs, ,Ss4.S7.
On the following day the daily
statement appeared with long and
somewhat involved preface. intended to
be explanatory. and In strikingly
metamorphosed form SO far as Its fig
ures were concerned. Without the ad-
dition OF single dollar to the funds
Of the nation. with no new sources OF
revenue pouring into the Treasury.
with no proceeds from bond issue
and without other means OF replenish-
ing Its dwindling funds, the Treasury
boasted net balance Of $l2S. .o6s. .646. %.
Dazzled, He Declares.
Somewhat dazzled by this piece OF
financial legerdermain of our modern
John Law. took early occasion tc
write to Mr.. McAdoo to express the
cd of bookkeeping had thrown me
and I asked him to be good enough
TO tell me how the Treasury balance
would appear II he had retained the
old form OF statement After consi J
cradle delay received an answer the
to the elaborate preface to the frs,
OF the new forms of Treasury state.
ment: and ! Sas told that. with thi,
information before me. I would hnd Il
very simple to make the computation
myself.
Now. It so happens that my eduoa
tion In the higher mathematics was
interrupted many years ago and Il
has never been resumed. Happily
however, my path through Mr.. Nc
Adoo's tortuous labyrinth of account
ing has been illuminated. Mr.. Harvey
=. Chase. OF Boston. a certified public
accountant. has made an examination
of the figures relating to the dali,
Treasury statement for two dates
the first. August 4, 1913. being undel
The form originally designed by Mr.
McAdoo for the purpose. and the sec
ond. October 23, 1915 being under tn,
latest Il dare not say the lasD OF tn,
Secretary's ingenious efforts to lif
himself by his financial bootstraps.
Chase's Conclusions.
"On August I. 1918. according to Mr.
C'hasc. the free available balance II
the Treasury office and in banks wa
sos. .I93.57l.A
mir. Chases conclusion Is couchcd II
solemn words. i hereby certify h,
writes. using his title of certified publ,
accountant. that II the daily statement
Of the United states Treasury of Octo
ber %. 1875, had been made up on the
same basis as that of August 4, 1913, tn,
available balance In the Treasury woull
IL "a M