Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-08-24
ny CHARLES WALLACE COLLINS.

ny CHARLES WALLACE COLLINS
Editors note: Mr.. Collins. who is in
charge Of the legislative reference serv-
ice in the Congressional Library. is recog-
nised Of the foremost authorities
on financial legislation in the country.
TINE general public is interest.
ed in a budget system for the
national government because
1t would effect economies in
the expenditure Of public moneys
which would lead to a reduction in
our high taxes, and thus to lower
ing Of the high cost of living. The
fact that public opinion demands
such a system was recognized in the
political platforms of all parties at
the last election. Congress Is. there
fore. pledged, irrespective Of party
alignment. to the adoption OF a
budget system.
We have about the worst system of
finance in the world and are far be-
hind other countries in using bust
nesslike methods in dealing with the
peoples money. Our country is so
rich in financial resources that in or
binary times the people as a whole
paid little or no attention to how the
government was spending the money
which had been collected from them,
directly or Indirectly. and placed in
the Treasury. We have been able to
get along with our indefens1ble lack
Of financial system because We were
gance was not felt. Other govern
ments have always. had to figure
closely on the margin of taxation in
order not unduly to burden the peo-
pie, and they have found it necessary
80 mt zach N annnrda
with it's own national institutions. a
businesslike system Of financial ad-
ministration, known as the budget
system.
Tax Burden Now Heavy.
The time is past in the United States
for financial procedure along the old
war stagger the Imagination. We
shall never return to the pre-war
basis. Heavy burdens of taxation
have been placed upon the people
which will continue for long time.
We need no more Investigations into
the need for public economy. Action.
not discussion, is the thing. The
question now is not shall we adopt
q budget system. but what sort OF a
budget system shall We adopt. we
must begin to insist upon concrete
plans, which will protect our peoples
money from being wastefully. mel
fcfently or extravagantly spent. Inc
United States must cease being a
for control has come.
The basis Of all government ex-
penditures Is the estimates drawn up
by the departments which spend the
money. Here is where control must
be exercised. Under our present prac-
tice we have no real control here.
Our departments make their own es-
Inmates each year. but there is no
machinery to control these estimates
at their source, nor medium by which
they can be criticised or revised. The
department heads transmit these es-
Inmates to the Secretary of the Tueas-
ury. who has neither power nor or
mates either by criticism. reduction
or elimination Of items. The Secre-
tary Of the Treasury. although nomi-
nally at the head Of the Treasury De-
partment. has no power under our
laws to protect the Treasury from un-
just or unwise demands from the
spending departments. Neither the
cabinet nor the President assume any
responsibility for the estimates as
drawn I'D by the various departments
In fact, NO means exist for mapping
out real financial program. or of con-
trolling the estimates for the ex-
penditure Of money.
Committee System Blamed.
What il the reason for this situa-
ton which exists only in the United
States. 1t is because Congress IN
sists upon the use of an elaborate, In
adequate and practically irresponsible
committee system to control our
finances. They act without any def
mite financial policy or without bal
ancinE expenditure with revenue.
Congress itself, through its commit
tees. which can necessarily only SUI
perflcially comprehend the complex1-
ties of the various departments. ac-
bills the detailed amounts of money
which every department mus1 spend.
In doing this they may entirely ig-
more the estimates, may add new
items or may make increases or de-
ductions as the committee may elect
This situation 10 well known to the
responsible officers who prepare the
estimates, and 1t inevitably leads to
insincerity, in their demands. They
are naturally ambitious for the ex-
pansion and growth of their work.
and in order to make sure that their
legitimate needs will be met, they es-
innate above them in anticipation OF
cuts by the committee The commit
tee, oh the other hand, is aware of
-
mates, SO that at the committee hear
ings where the executive officials are
called before the committee to ex-
plain and justify their requests for
money, there is always a struggle in
which the wits Of the departmental
ohicer are matched against the efforts
of the committee to control his finan-
cfal operations. The committee Is I'M
able to get at the real facts because
ita members cannot possibly know
very much about the inside workings
of the government bul .aus and they
very often make blind reductions in
expenditures, thus seriously handi-
Gaping the work of the bureau.
Lack Of Proper Control.
There could not be a more unsatis-
factory system of handling the peo-
pies money. Everywhere there is a
lack of proper control of the purse.
Under the Constitution Congress is
responsible to the people for both
taxation and expenditure, but Con-
gress is not responsible for the run
ming of the executive departments.
The President,-as head of the exec
utive government, ought to be re-
sponsible for that The first element
of a budget system is, therefore, an
organization which will place the re-
sponsibility in every case where it
belongs. The British. the French. the
Italian-in short, the world other
than the United States-have done
this. In the early history Of our
government we started out with busi-
nesslike methods in finance, and con-
tinued them until local selfishness
fastened its grip upon the national
Treasury.
Foreign experience and our own
81