The Washington times., 1922-05-23
'2b|LL|ON TOBE
WIPED OFF j. 8.
RED|NKLEDGER
Madden to Plug Holes in New
Budget System-Bookk
ing to Be Revised.
By WINDER r. HARRIS.
Universal Service.

universal service.
Two billion dollars will be topped
off the debit side of the Govern
ment's books at one blow. under
plans for plugging up holes in the
newly established budget system
announced by Chairman Madden OF
the House appropriations Commit
tee, in an exclusive interview with
Universal Service today.
The Governments antiquated sys'
tenn of bookkeeping also will be
revolutioniZed, Chairman Madden
said, so that more exact check
can be kept at all times on the
actual cost of operating the Gov
ernment, as differentiated from con-
tinuing obligations arising out OF
the past and investments.
Data on Unspent Balances.
The first billion OF possible eI-
penditures to be eliminated comes
under the heading OF "unexpended
balances" The Treasury records
are replete with items in which
there remain varying amounts from
appropriations. AS the situation
now stands, these remaining funds
still are available for expenditure.
Chairman Madden said:
II am now having data on these
unexpended balances compiled and
am making a careful study of them,
with a view to. wiping them off the
records, withdrawing the authori-
zation for using them and covering
the available amounts back into
the Treasury"
Chairman Madden said he also is
making a study and having infor-
nation compiled by the Treasury
Department on what are known as
] permanent appropriations" These
Items involve standing authorize
tions for expenditures by the sew
Ieral departments and bureaus with
Bout any review or check whatever
by Congress.
Included under the heading Of
'permanent appropriations" are in
terest payments on the public debt,
sinking fund, and a few other
things which II is manifestly proper
should be cared for by permanent
legislation. But there are other APP
preparations Of this character which
budget officials and leaders on the
Appropriations Committee insist
should come under Congressional
review.
For example, in making appro-
pria tions for the ensuing year, the
committees invariably examine Of
ficials of the department or bureau
then under consideration on expen-
ditures OF the current year for the
same purposes. They are required
to detail how the previous funds
were used, whether or not there
are any balances remaining. what
good was accomplished and what II
Is proposed to do with the money
asked for the coming year. In the
case OF permanent appropriations.
the committees have no opportunity
for review. The officials are free
TO expend the funds as they deem
necessary without any Congress
sional check.
Appropriations to be Repealed.
Therefore" said Chairman Mad
den. "in all cases where il will not
seriously interfere with the neces-.
sary activities of the executive
branch Of the Government, we will
pass a bill before the present ses-
sion is adjourned repeating these
permanent appropriations"
Mr.. Madden explained that there
are hundreds OF these items. some
dating back 100 years, which run
close to another billion dollars.
With regard to bringing the Gov
ernments system of bookkeeping up
ko date. Chairman Madden said:
II am making a study of the
Governments accounting system,
with the view that, cooperating
with the director and comptroller
of the budget. we may be able to
20 revolutionize the system that it
will be possible at the end of each
wear TO make public an annual
statement in accord with the sys-
tenn obtaining in any well-regulated
business establishment.
when we get through we hope
to he able to give the stockholders
IN the United States Government
the taxpayers balance sheet,
which will show them what it has
cost to operate the Government
during the year and also what has
been used in investments which
hnaY