Perth Amboy evening news., 1923-10-16
A NATIONAL BALANCE SHEET
By Frederic j, Haskin

operates big irrigation projects, a
railroad and the only water high
way connecting the Atlantic and Pa
ci1c oceans. He has vast possessions
In the form of ships-all kinds that
sail the sea and air. He has manu-
featuring establishments and scien-
tifc laboratories and immense stores
! of supplies necessary to the upkeep
of a business concern that spends al
most four billion dollars a year.
And yet Uncle Sam doesn't know
how much ne is worth and none OF
his hired help has known since the
day he frs. started in business.
| A business maj or a corporation
that was so unbusinesslike would
end in bankruptcy or a receivership.
but Uncle Sam has escaped that be-
cause he is immune to such pro-
ceedings. He has been able to mud
die through for almost a century
| and a half Without ever having a real
balance sheet. a statement of assets,
liabilities and net worth.
However. this state of affairs is
shortly TO be corrected as part Of
the program TO put more business
into government. The controller
generals office force Is making a
study of a central accounting system
and has worked out a departmental
fund and proprietary system of ac-
counts. This is now being installed
in the departments and It is expected
that Within two years there will be
uniformity in all government ac-
counts.
When this has been effected it
will be possible to strike a balance,
which Will be supported ~ state
ment showing. first the cost of or
ganization units of the government.
second. the cost of operation by ac-
tivities. and. third the cost Of OPP
GRAFTON classified according to char
aeter of expenditures. This latter
will show current expenditures. fixed
charges. expenses in acquiring prop
erty. payments on the national debt
and capital OUTLAWS for rights and
obligations-that is. those eSpendi-
lures of the Government made for
investments. treaty obligations, :e-
payments of deposits, refunds, re-
wards and in~deranities.
Uncle Sam has had a good example
set for him by the Philippine govern
ment which furnishes him a balance
sheet every year. This statement.
which shows what is to be expected
when there is a balance sheet FOR
the United States. presents the Phili-
| ppine assets in the following order.
Public Domain.
Fixed property-land. buildings
and improvements. public highways
and bridges. harbor and waterway
Improvements. sewer and water
works. lighthouses and heacons, pub
lie parks and monuments. docks and
wharves. ~artesian wells. irrigation
systems. telephone. telegraph and
cable lines. electric transmission lines
equipment Offset by accrued depre-
citation of fixed property.
Permanent and long term invest
ments-real estate. loans and ad-
vances stocks and bonds.
Quick asssts-cash. supplies and
materials, sales stock. accrued in
terest receivable and accounts re-
receivable.
Prepayments.
United States Liberty bonds.
Deferred debts.
All Of this. in the aggregate. shows
the total assets of the Philippines.
The liabilities are similarly CLASH
fed in detail. and the difference is
the net worth OF the Philippine gov
errment as a going concern.
To get al the value Of the real and
other fixed property of the United
States, Col. II, c. Smither chief CO.
ordinator Of the Bureau OF the
Budget, has a committee that is
making an inventory and evaluating
those properties. When this has
been completed a balance sheet can
be prepared for each governmental
department or agency. and by a con-
solidation o1all these balance sheets
congress and the general public viii
be given a complete statement show
ing whether Uncle sam is solvent. or
the degree Of his s%olvency-
The cash situation OF the govern
ment is now shown in a daily state
ment issued by the Treasury Depart
ment. This itemizes the cash as
sets and cash liabilities OF the gov
eminent. and also includes a rlassi-
fed statement OF receipts by sources
/ and OF disbursements by purposes OF
expenditures. L is not in any sense
however. 3 balance sheet that tells
the complete story Of the govern
msnt's financial condition.
Uncle Sans business IS Of such an
immense volume. and he has done
business so long in such E sipshod
manner that the installation OF a
uniform system of accounting has
been a big Job. II was first necessary
10 make a comprehensive survey TO
/ determine the kind Of system that
was best n order TO produce the data
required by the Bureau OF the Bud
get and By congress. This called fer
many months OF laborious work and
the officials directly interested say
that the result is a long step toward
putting the government on = strictly
| business basis.
The average citizen when assured
that this is being done is likely TO De
more interested in learning when II
VIII lead TO reductions in federal
taxes. Secretary Of the Treasury
Mellon has pointed ont that If gov
eminent revenues are squsn6ered on
such things as q soldiers bonus elsb-
crate and unnecessary public naild-
ings, harbOrs and so forth. which are
built for no other purpose than TO
please local pride. taxation must in
crease TO provide funds for the regu-
lar and proper functions OF govern
menL
The Federal government Is doing
everything in its power 10 effect
economies" he says, but the fact
IS too often lost sight OF that this is
not a country OF one government but