Evening star. [volume] (Washington, D.C.) 1854-1972, 1924-02-26
CHAPTER III.
Tho Latest Methods--For AID. 1890

AAo LATEST Me1nOoS-FVf ALL I0V'
Young Alexander Hamilton. first
Secretary of the Treasury Of the
United States. occupied that great
position 1874 years ago. He installed
q complete set of books. They were
right ,up-to-date-then. He put In
the latest bookkeeping methods
then. A double entry system.
Most men, like the ages. change
slowly. Forty-seven men since his
day have occupied the seat vacated
by Hamilton. A new science Of ac-
counting has come along. All modern
business organizations use it-they
cannot get along without It. But
the government OF the United States
hobbies along under the old system
Of bookkeeping.
counts must have two objects con-
stantly in mind:
% To furnish an open. clear and
concise record OF all financial trans
actions. so that the people may al
ways. have. accurate information as
70 the real condition of the public
Treasury and of each transaction;
and
(2) To furnish the means of hold
ing the disbursing officer to faith
i III QiScnarSG or MS duties.
In the days of Hamilton the second
function was primary. The double
entry bookkeeping, plus a searching
voucher system, was adopted 1t was
careful and met successfully the Sec
ond OF the objects of good bookkeep-
Ing. But the first object. which. so
TAR as the people are concerned, Is
by far the more important, has ever
been seriously neglected
Complaint has been made of this
weakness from time to time for more
than fifty years. but up 10 1921 moth
ing was done to remedy the condi-
ton.
Six BiE Weak spots Picked.
1t is true that In 1911 President
Tai: created the commission of econ
omy and efficiency to inquire into the
condition and methods of government
accounting and finance. DR. Freder-
lex A. Cleveland, a recognized finau-
eial expert, was made chairman. The
commission made an exhaustive
study OF the situation. They saw the
weak spots and did not hesitate tc
state them. What was wrong with
the governments accounting methods
anyway? Six shortcomings.
Cd The government of the United
states had never had d budget.
90 The government Of the United
sheet.
CD The government OF tie United
states had never had an ope ra tin 9
account which showed the surplus
or deficit Of operating expenses
90 The government had neye,
known how It stood financially.
to) The government had never
had any means for reviewing il.
contracting and purchasing relations
W Inc government of the United
states had never had the informa tio1
necessary for considering questions OF
economy and efficiency.
rms amazing revelation OF Or
cleveland was given oat in 1911
Thirteen years have passed since then
the great war, brin ging In its trair
the greatest financial load ever car.
ried BY the Treasury, has come AND
gone.
Enter the Budget Bureau.
This is 1894. Still no balance sheet
no operating account, no method fol
determining how the government
stands financially.
The commission of economy anc
eficiency made its report and recon.
mendations and subsidized into oblivion
But We have saved one piece o,
financial machinery that may prove
to be worth its weight in gold. 1t may
be the beginning Of better days.
Ten years after this great cleve.
iSAiN b'pOIt was iSSur0 IhtEt DIS SA'
tablished. in 1921. In the Treasur,
Department, the bureau OF the bud.
get, with Gen. Charles Dawes as frs
director general.
Even this important step forward
would not have been taken had II no.
been for the tireleSs work of the In.
Stitute for Government Research, UNI
der the very careful and able leader.
ship Of DR.. ". A. Willoughby. This
is a private organization OF citizen,
who for years have tried to give the
government every assistance in lay.
ing the proper foundation for thi.
fundamental and important next step
Wtlloughby deserves special men.