Evening journal., 1915-07-22
An APPFAL no BUsINrss HIMoR.

IN formal statement given to the press recently
ViceCharman Edward N Hurley. of the Federal
Trade Commission that il is Che purpose OF
that agency to aid the business men Of
the country in establishing system Of book
keeping and cost accounting with a view to enabling
them to obtain additional credits with their bankers
The suggestion is that will appeal 10 the sense of
humor Of both merchants and bankers
II is matter Of common knowledge that the ex-
perts who manage governmental business have not yet
been able TO conduct operations at low cost as can
be done by private enterprise. II is also notorious
that frequently the methods Of bookkeeping and ac
counting employed by the government are purposey
carelessly or ignorantly inaccurate and misleading
For example the fiscal year closed more than a fort
night ago; and. to date can tell wether the
Democratic deficit for the year thirty-seven or
hfty-seven, or eightyseven millions The only sure
thing is that there was deficit II is hardly probable
that scheme Of bookkeeping like that will appeal
either TO banks, or to merchants, or to manufac-
turers.
Take the matter Of cost accounting which TO be
useful should be based upon comparisons percentages
and the like. The system Of bookkeeping which
Democratic Administration employs in the Treasury
Department is such that intelligent computation and
comparison Of annual revenue results can be made
except az considerable labor. For instance the reve-
nue. from the income tax for corporations much less
this year than it was last Yet the items of the
Combined Statement of Receipts. Disbursements Bal
ances etc., which Mr. McAdoo's boolkeepers published
last year arranged that II necessary 10 add
two columns of figures to make a comparison with
single column in this years figures as given out for
newspaper Dublication-and then one cannot be
sure that still other items necessary for an intelligent
comparative statement not to be found somewhere
else or under entirely different heading
Moreover in the last few weeks it has become known
that the Treasury Department adopted a system of
bookkeeping which showed available net balance
In the Treasury, when no such balance actually ex-
isted II is difficult 10 imagine how any banker hav-
ing knowledge Of this fact would place any confidence
In an asset statement made by merchant in accord
ance with form prepared by government experts
who approve Of the methods adopted by the Treasury
Department
Without going into further detail IN this respect IL
may safely be stated that If the Federal Trade Com
mission has in its employ can secure experts in
bookkeeping and cost accounting there will be abundant
field for their usefulness in securing some system
which viii assure fair degree of accuracy and clear
ness in the records Of the government No business
man is likely to accept with any degree Of conf
dence suggestions made to him by a government ex-
pert who has not first been able TO work out fairly
satisfactory system for the government itself
It is the business Of the banker to loanall the avail
able money he It is his desire to loan to the mer
chants Of his town every dollar that their personal
integrity and business assets will Justify In view of
the governmental demonstration of naccuracy and
misleading methods, banker who conducts his
business on a,safe and basis likely to increase
the credits OF any merchant because Of the adoption
OF government methods o. accounting
The new scheme Of the Federal Trade Commission
will serve effectively in providing places for de
serving Democrats" but there is no other end that it is
likely to serve