The Washington times., 1922-12-31
dawes SCORES
| FEDERAL FORM
| Of ACCOUNTING
Suggests Adoption of Modern
Businesslike System in All
of Government Departments
EXPOSES ARCHAIC METHOD
f ormer Budget Director Says
Part of Cabinet Officers Are
Ignorant of Simple Routine
BY Universal Service.

By Universal Service.
2 CHICAGO, Dec. 3O.-"Our
Government is the business of
the people. Operate it as you
would any big business enterprise.
Install modern accounting sys-
TENS in its forty-three depart
ments and coordinate them.
Then, and not before, can we
strike an Ineligible balance OF
the nations business"
SYSTEM EXPOSED.
This is the suggestion OF Gen.
Charles G. Dawes, former director
of the budget, for remedying the
Governments archaic system of ac-
counting, exposed through publi-
cation of the suppressed balance
sheet of the Postotf.ce Department,
showing n deficit Of $l.l9S,OOO for
the first quarter of 1922.
In no other way, in the opinion
of General Dawes can the Govern
ment be put upon an efficient, busi'
nesslike basis.
The Postoffice Department, Cen
eral Dawes points out, Is only one
OF forty-three Governmental de-
partments. 1t was singled out and a
balance sheet prepared because or
its imnor'ance.
DISCOVERIES ASTONISHING.
The Postoffice balance sheet was
prepared after six months of labor
by expert accountants working un-
der the direction of +. G. Furlow,
president of the Otis Elevator Com
pany, "dollar-a-year" man. Its
compilation led tn several aston
ishing discoveries.
First it was learned that the Post
office Department, generally believed
self sustaining, or nearly so, operated
during the first three mopths OF
1922 with a deficit at the rate OF
nearly s5i 500. 600 per annum.
Next it was discovered that Gov
crnment accounting provides that
the loan Of money 10 the railroads
is an expense" and the repayment
OF such a loan is receipt"
If the PoStoftiCc Department in
vested in new pOstofficc. the
amount involved was treated as
expense" Similarly, when il sold
piece of real estate the return
was a receipt"
INVENTORY IMPOSSIBLE.
Further, it was learned that the
government is without stock ac-
counting system. In other words.
It has no adequate means of taking
inventory.
DESPITE these revelations. the bal
RnCe sheet of the Postoffice De
partmcnt was piEconholed and the
I fn to
archaic accounting system. The
Governments accounting system is
approximately the same today as it
was a century ago.
When a. ID. LaSker took charge
Of the Shipping Board he imme-
diately set out TO ns,all a modern
accounting system. AS "a result he
reduced the number of his accounts
from $500 to 700 and produced a
statement which was intelligible to
the President, to Congress and to
the public as well.
General Dawes does not blame
any individual for the laXity in
Government accounting. He holds
the system itself nj fault. He said:
RUN BY SUBORDINATES.
l learned as director Of the
budget not to be surprised at the
ignorance of some Cabinet Off
GERS as to the routine business Of
their tremendous organizations,
which are actually run by subor-
djnateS who have had years of
training.
Even where he possesses great
business ability, the inexperienced
cabinet officer generally is lost
ia the enormous business of the
department.
Submerging of the postoffice
balance and operating sheets is
not the fault of the postoffice
Department. They were COM
rl,t-d about the time the account
rg of the departments was trans
rrod by lew to the office Of the
e. nTtroiler General Of the Uni
| States, who has the great
sk of reforming the present dis.
aceful and archaic system OF
government accounting.
NEW METHODS OPPOSED.
Comptroller General McCarl Is
lc hut he is surrounded by old
'.urernment accountants who will
,h' to the death il possible,
a,. uSt improved methods.
Z DO not CritCise the Comptroller
g neral. He has the difficult task
.ut o grooming the opposition, partly
.gr.H uy from timidity OH the part
.T his Subordinates, to q change
.iu tuc present disgraceful method
g. yccouU'ing.
El' ! Do undertake to say that
ii he fight for correct bookkee7,-
iur g. tho Postoffice Department
ps' .n.yu will go with IL for
I; "l finite time the chance Of
g. .'uiVg = roper accounting sys.
4. ~ - IN L,nA uIllnLnnI as a Ayhnlr