Evening star., 1927-04-29


nized by the first director Of the
budget, Gen. Dawes, and were pointed
out in his annual report, so 1t is
believed that corrective measures IN
Congress will have his important sup
port.
Closely related to, If not constitut-
ing an essential part Of the perma-
nent appropriation system is the prac-
tice of the National Government OF
setting up special funds for the
financing of particular services or ac'
tiyities, This practice is highly de-
sirable, the Institute for Government
Research finds, in the case OF those
revenue producing services which
should in effect be treated as subsidl-
ary corporations and financed through
a supplementary budget and working
capital or a revolving fund. The use
+ of special funds is also justified in the
financing Of supply services through
the device of a revolving fund ana
when trust obligations have to De
met. Except in these special cases,
the practice of assigning particular
classes of revenue to particular serV-
fees or activities which necessltate
the creation of special funo shouiu gt,i
he avoided, DIR. Willoughby says. the
objections to this practice are much
fhe same as those against permanent
appropriations.
Even If account is taken OF the
0aarIv n. billion and a half represented
In permanent appropriations ana aoo-
ad IN the totals carried in the annual
appropriations act, it does not com
1oiete the picture of funds available
for expenditure by the several de-
partments. Under the law the pal
nnces of annual appropriations preVl-
ously made that are unexpended our
,ing the year remain available Tor ex-
Expenditure for two years after the close
of the fiscal year in the settlement or
obligations incurred during that year.
The aggregate of such unexpended
Balances of prior appropriations con-
etitutes very large sum.
If the change advocated by the In
ktitute is made, the spending services
in formulating their estimates for ap-
propriations will, Of course, have to
give consideration to outstanding
claims that have to be settled during
the year. A requirement that this
item be separately estimated for would
furnish valuable information concern
ing the outstanding liabilities of the
Government. This change also was
in effect advocated by Gen. Dawes, as
FIRST director or the Dudget.
Financing of Supply Services.
In the National Government the
chief central supply services are: ~
THE Government Printing Office, which
does. with a few negligible exceptions,
the printing and binding for all the
/. administrative services; (2) the Bu-
feau of Engraving and Printing, which
acts as a supply service for the Treas
hry Department in respect to paper
currency, bonds. certificates, internal
revenue stamps and the like, for the
Post Office Department in respect to
postage stamps, and possibly does
other work for other departments; 81
the Government fuel yard, which sup
plies coal for all services in Washing
ton, and ~ within the departments
there have also been created in many
cases central services for stationery
and allied office supplies for the bu-
raaus in each department.
The method of financing the Gov
krnment fuel yard since 1913 and the
Government Printing Office since 1928
through the device of the revolving
fund, is recommended for general
adoption. DIR. Willoughby calls atten
ton that under such system single
appropriation is made TO the supply
service sufficient to provide 1t with
working capital, and special appro
priations are made to the bureaus tc
be served by it for purchasing from
the supply service the supplies or serv
ices needed by them. The payments
made by the operating services are
credited TO the revolving fund, which
Is thus supplied with means for max
ing its disbursements without unduly
{ aon1afiuU f0 11prlxipap capifaI Hinder
this system items for the purchase oi
supplies or services thus appear ar
part of the estimates Of the services
securing such supplies and services
and as part of the appropriations
made for such services.
Policy Given Support.
That this policy is one that has re
keived the support Of the Bureau oi
the Budget appears from the fact thai
a draft of a new public contract act
proyides that the general supply com
5nittee shall become a central purchas
ing and supply as well as a centra
contracting agency, and that 1t shal
be financed through a revolving fund
appropriations for the purchase o.
6unpIies being made directly to tht
spending services.
One Of the greatest improvements
following the installation Of the bud
get system was the adoption of the
unit of organization as the primary
basis for the classification of estimates
and appropriations. The estimates
and appropriations for each bureau
br major subdivision of department
should embrace all items of eXpens'
entering into the cost of maintaining
and operating such department. Th'
cKaf IgnCnn
areues that careful study should b'
made of existing appropriations heads
with a view to determining where 1t il
feasible to substitute specific appro
nrIations to the several services il
place of general appropriations to th'
department as a whole.
:. AnAepm the appropriations wAIes