5,257,116-99 110,517,458 05 ed by the act of the 8th of May, 1792, which created the office of accountant of that department, and referred to that officer the settlement of all accounts relative to the pay of the army, the sub. sistence of the officers, bounties to soldiers, exof the recruiting service, and the incidentpenses 1,871,639 76 al and contingent expenses of the department.~ The accounts settled by the accountant were to be certified quarterly, and sent to the accounting officers of the treasury for their revision. This act continues with the treasury department the power of making, for the war department, the purchases before enumerated. 108,745,818 29 157,648,517 53 5,257,116 99 162,905,634-52 1,025,000 00 161,880,634 52 JOSEPH NOURSE, Register. THE PUBLIC OFFICES." Joint Report to the Senate from the Secretaries of the different departments, respecting the annual settlement of the public accounts. In obedience to the resolution of the Senate of the 20th of April last, requiring the secretaries of the departments to report jointly to the Senate, in the first week of the next session of Congress, a plan to ensure the annual settlement of the public accounts, and a more certain accountability of the || public expenditure in their respective departments: The undersigned have the honor to REPORT On the 30th of April, 1798, the navy depart ment was created. From the organization of the government to this date, the secretary of war executed the orders of the President in relation to the navy. On the 16th of July, in the same year, the office of accountant of the navy was created, and the settlement of all accounts in the navy department was referred to that office. On the same day the power of the treasury department to make contracts for the war department was rescinded, and all the accounts of that department were, thenceforward, settled by the accountant. The power of revision, both as to the accounts of the war and navy departments, was, and still is, reserved to the accounting officers of the treasury. This power, however, from the period of the pri mary settlement of the accounts of the war and navy departments, was withdrawn from the treasury, ceased to be useful, and has been preserved merely for the sake of form. In the treasury, balánces or debts admitted on settlement, are paid only upon the report of the auditor, confirmed by the comptroller, whose decision is final. In the That in order to comply with the requisitions of war and navy departments the surns reported by the resolution, and to satisfy the just expectations the accountants to be due to individuals, are paid of the Senate, it is necessary to inquire into the without waiting for the revision of the accounting causes of the delay in the annual settlement of ac-officers of the treasury. This practice, which has counts, and the want of sufficient certainty in the accountability of the respective departments, upon which the resolution is predicated. been adopted in some measure from necessity, ia not believed to be incompatible with the provi sions of the law requiring that revision. The acAn attentive review of the principles upon countants of the war and navy departments are rewhich the several departments of the government quired to transmit quarterly all the accounts, were originally organized, and of the changes which have been settled, to the treasury depart which have successively been made in that organi-ment for final revision. It could not have been zation, appears to be necessary at the threshold of this investigation. the intention of Congress that an officer or an individual, to whom money was found to be due by the report of the accountant of either of those deBy referring to the laws for organizing the several departments of the government, they will partments, should wait for payment not only until be found to be extremely general in their terms, the expiration of the quarter, but until his ac leaving the distribution of the duties and powerscounts should be re-examined by the auditor of of the secretaries, in a considerable degree, to ex- the treasury, and also by the comptroller. The delays to which this course would necesecutive regulation. The law organizing the treasury department, however, specifically refers to that sarily have led, tnust have produced a state of condepartment the settlement of all public accounts. fasion, which, in a short period, could not have The pecuniary embarrassments by which the go-failed to have obstructed all the operations of the vernment was pressed at that period, requiring a government. On the other hand, it is manifest, system of the most rigid economy in the public that from the moment payments were made upon disbursements, could not fail to give peculiar force the settlement of the accountants, before the reto the idea that the department charged with the visionary power of the treasury officers was exerreplenishment of the Treasury should have a di-cised, revision became useless. The leading fearect control over the public expenditure. Underture of the organic laws of the departments, that the influence of this idea, all purchases for sup- the settlement of the public accounts should explying the army with provisions, clothing, sup-clusively rest with the departments, which was plies in the quarter master's department, military charged with the replenishment of the treasury, was substantially abandoned. The form, indeed, stores, Indian goods, and all other supplies or articles for the use of the war department, were, was preserved, but the vital principle was extin by executive regulation, directed to be made by guished. the treasury department. It is probable that more importance was attachThe first important change which was made ined to this principle, by those who presided over the organization of the war department, was effect- the primary organization of the departments, than it intrinsically merits. The power of the accounting officers, whether belonging to the treasury department or to those in which the disbursements are made, to enforce economy in any branch of the public service, must necessarily be extremely limited. the same date, remain still unsettled. It is, there fore, confidently believed that the duties imposed upon the accountant by this act require the undivided attention of another accounting officer. In contemplation of the law, the comptroller of the treasury revises all the accounts of the governIn disbursements for the pay, subsistence, and ment, for the purpose of correcting the errors, clothing of the army, whilst rations are furnished both of fact and of law, which may have been com by contracts, the most rigid economy may be mitted by the accounting officers, to whom their easily enforced. In the quarter-master's depart- settlement is, in the first instance, committed. ment, and where provisions are supplied by a He is likewise charged with the superintendence commissariat, the accounting officers can exercise of the collection of the revenue arising from duties but a very limited control. The principal reliance and tonnage, and directs the collection, by suit, of the government for economy, in those depart of all debts due to the United States. It has been ments, must be upon the integrity of the persons already stated that the revision of the accounts employed. Over the contingent disbursements of settled by the accountants of the war and navy the war and navy departments, which, in time of departments, by this officer, has always been mere war, are considerable, and which, in all govern- ly nominal. The enumeration just given of the ments, are extremely liable to abuse, the account-extent and variety of the duties imposed upon ing officers have still less control. For economy him, will satisfy every reflecting mind that they in that branch of the public service, the heads of must continue to be so. Should this officer be those departments must be responsible to the na-relieved from the superintendence of the collec tion. From this view of the subject it appears not to be so important that the public accounts should || be settled in the treasury department, as that they should be promptly and finally settled. be revised. From this view of the subject, the appointment of an additional comptroller appears to be indispensable. tion of imposts and duties, and of suits for the recovery of debts due the United States, by the assignment of those duties to another officer, still, it is believed, he would not be able to revise all Whatever diversity of opinion may exist upon the accounts of the government, so as to be, in this subject, it is believed that there can be none fact, the check upon the auditing officers which upon the propriety of either returning to the prin- the law contemplates. When the office of compciple upon which the departments were originally troller was created, and the duties of that officer organized, of referring the settlement of all public prescribed, the auditor of the treasury was the accounts immediately to the treasury department, only accounting officer whose acts he had to reor of finally settling the accounts of the war and vise. At present, he has to revise the settlements navy departments without the intervention of the made by three accounting officers; and according accounting officers of the treasury. The former to the plan which it is the duty of the undersign has the recommendation of unity and simplicity in ed to propose, in order to ensure the annual set. theory; and, it is believed, that no serious incon- tlement of the public accounts, there will be five venience will result from it in practice. The lat-auditing or accounting officers, whose acts are to ter would ensure the prompt and final settlement of the accounts of the several departments, but might, possibly, lead to the establishment of different principles in the settlement of the public It has been previously stated that the mass of accounts in the respective departments. Under business thrown upon the accountant of the war judicious regulations, it is believed that the prompt department, by the act of the 16th of July, 1798, and final settlement of the public accounts may be has produced an arrearage in the settlement of as effectually secured by the former, as by the lat- the accounts of that department, almost coeval ter modification. with that date. This observation was intended to Whichever modification may be adopted, an in-apply to the accounts appropriately belonging to crease in the number of the accounting officers the department, arising from the administration of appears to be indispensable. From the year 1792, the military establishment. But the accounts of when the office of accountant of the war depart-the Indian department, without a solitary excep inent was created, to the year 1798, when all the tion, have remained unsettled from that date to accounts of the war department were referred for the present period. This has resulted from the settlement to that officer, the military force of the fact that the secretary at war is substantially the United States was not so extensive as the present auditor of all the Indian accounts. It is also his military peace establishment. The duties assign- duty to inquire into and decide upon all claims ed the accountant at the former period was, as exhibited by the citizens of the United States for has already been stated, the settlement of all ac- property stolen or destroyed by the Indian tribes, counts relative to the pay of the army, the sub-to whom annuities are payable, and where they sistence of officers, bounties to soldiers, expenses are proved to his satisfaction to direct compens of the recruiting service, and the contingent ex-tion to be made to the injured party, out of the penses of the war department. The services re-annuity payable to the offending tribe. These quired by that act, are believed to be sufficient to duties, together with the examination of the con give full employment to one accounting officer. tingent expenses of the department, which must By the act of 1798, the settlement of the accounts also receive his special sanction, if duly attended relative to the subsistence of the army, the quarto, would leave him no time to devote to the more er-master's department, the clothing department, important and appropriate duties of his station. the purchase of arms and munitions of war, and to The consequence has been that the Indian ac he indian department, were referred to the accounts have remained unsettled, and must concountant of the war department. tinue so, until a different organization of the de The additional duties imposed upon the ac-partment shall be effected. countant by this act have been so great, that some It is obvious to the mind of every reflecting of the accounts of the war departinent, nearly of man, that the duties imposed upon the secretary nection with the inability of the accounting officers to settle annually the public accounts, has produced more serious consequences to the national treasury, than every other united. The conviction, on the part of an officer, that his accounts cannot, or will not, be settled for years, presents a certain degree of impunity to embezzlement, and powerfully tempts to the commission of it. The necessity of resorting to an action at law to enforce the settlement of accounts, or to recover money embezzled by an officer, ought to be avoided, if it can be done consistently with the provisions of the constitution. In some of the of war, in relation to the Indian department, have | It is the peculiar province of the legislature to no rational connexion with the administration of apply appropriate remedies for every evil disclosed the military establishment. From the view that by the practical operations of the government. has been presented, it is conceived that the pub-The one now under consideration, taken in conlic interest requires that the secretary of war should be relieved from further attention to those duties. It then becomes necessary to inquire whether those duties can, consistently with the public interest, be assigned to either of the other departments. An examination into the duties required of those departments, it is confidently believed, cannot fail to produce the most decided conviction that no additional duties ought to be imposed upon them, under their present organization. On the other hand, there is good reason to believe that the public interest would be promoted by relieving those departments of several branches of the public service, at present commit-States this necessity is avoided, the public money ted to their respective charges. retained by a revenue officer, being collected by execution issued by the state treasurer. If this or a similar principle could be acted upon by the U. States, embezzlement would not be frequent. In conformity with these preliminary observations, the undersigned respectfully propose, that it is expedient The retrenchments which, with great advantage to the public interest, might be made in the duties now imposed upon the secretaries of the respective departments, and the general post-office, would furnish ample employment for the head of another independent department. An appropriate assignment of duties to the chief of the new department, would embrace the territorial governments, the Indian department, the general post-office, roads and canals, and the patent office, and such other branches of the public service as may be deemed expedient. But the defects in the organization of the exist ing departments, are not the only reasons why the public accounts are not annually settled. The want of power to compel those to whom the collection or disbursement of the public money has been confided, to render their vouchers and settle their accounts when required, has largely contributed to swell the list of unsettled accounts. The power of dismissing from office for misfeasance or nonfeasance in office, especially with the collecting officers, is sufficiently coercive, as long as the conduct of the officer will bear examination, and powerfully contributes to keep him in the line of his duty. But when the settlement of his accounts must expose his guilt, and especially when he has been dismissed from office, this coercion entirely ceases. With disbursing offices, and particularly in the military establishment, this mode of coercion is much more feeble. In that department, too, there is the strongest reason for the adoption of the most vigorous measures to bring to a prompt and final settlement those who have been entrusted with the disbursement of money, particularly in the quarter master's and pay master's department. Until the accounts of the quarter master general of an army, or of a military district, are settled, it is impossible to settle the accounts of the deputies and assistants, the barrack-masters, forage-imasters, and wagon-masters, employed with the same army, or in the same district. The same observation applies to the pay departments. Until the deputy pay-master general settles his accounts, or until he renders his vouchers, none of the district, assistant district pay-masters, or regimental pay-masters, can settle their accounts. This observation applies to the several grades in both departments. Thus a single officer, who knows himself to be a public defaulter, may, by standing aloof, and by procrastinating the decision of law, after suit is brought, prevent, for years, the settlement of the accounts of other officers, who may be solicitous to adjust them. First. That another independent department of the government be organized, to be denominated the "HOME DEPARTMENT." That the secretary of this department shall execute the orders of the president in relation Third. That the office of accountant of the war and navy department, and of the superintendent general of military supplies be abolished. Fourth. That the survey of the coast be confided to the navy department. According to the modification here recommended, the First auditor will be charged with the settlement of the public accounts accruing in the treasury department. Second auditor will be charged with the settlement of all accounts relative to the pay and clothing of the army, the subsistence of the officers, bounties and premiums, the recruiting service, and the contingent expenses of the war department. Third auditor will be charged with the settlement of all accounts relative to the subsistence of the army, the quarter-master's department, the hospital department, and the ordnance department. Both of these auditors will keep the property account connected with those branches of service, in the war department, confided to them respectively. By late regulations the pay and clothing appropriations Are in fact considered as one appropriation. Fourth auditor will be charged with the settle-be faithfully and honestly disbursed? Has the The first comptroller, being relieved from di-collected? There can be no doubt that the different remedies in the two cases have resulted from the want of sufficient reflection, and not from design. The subject is now presented to the view of the Sc, Second comptroller will revise all settlements nate, and no doubt is entertained that that enmade by the second, third, and fourth auditors.lightened body will satisfy the demands of reason The solicitor of the treasury will be charged and of justice. It may be proper to observe that with the recovery of the debts due the go-the principle now recoinmended has been applied vernment, according to the forms prescribed by the laws laying direct taxes to the collectors by law. of the internal revenue. The legislature, in rela tion to that class of officers, has even authorized the arrest and imprisonment of collectors who fail to collect, or neglect to pay after collection; and the seizure and sale of the property, real and per It is probable that experience will suggest the propriety of making changes in the distribution of duties among the accounting officers of the treasury. In order that they may be done with facility, and as they shall be discovered to be ne-sonal, of his securities during their imprisonment. cessary, it is respectfully recommended that the whole subject be left to executive_regulation. As the principle has already been applied to cases arising out of the collection of the revenue, it is With this organization of the departments the respectfully conceived that reasons, more cogent, check contemplated by the revision of the comp-call for its application to the disbursing officers of troller will be as effectual as it can be made. the government. The different rules established Money will then be paid in all the departments in relation to those two classes of officers, if per upon the settlement of an auditor, only after it severed in, cannot fail to present the idea that the has been revised and approved by a comptroller. government is more astute in devising means to If the departments should be thus organized, raise and collect revenue, than in enforcing a faithand vested with sufficient power to compel all of-ful application of it when collected. ficers employed in the collection or disbursement of the public money, to render their vouchers and settle their accounts, the annual settlement of the public accounts, will be ensured, and a more certain accountability established in the respective departments. JAMES MONROE, GEO. GRAHAM, Acting Sec. of Wer. B. W. CROWNINSHIELD, December, 1816. The honorable JOHN GAILLARD, COMPENSATION LAW. If the officer entrusted with the recovery of money improperly detained by public officers, was authorized to issue an execution for the sum appearing to be due, either upon settlement or upon the failure to settle when called upon for that pur The committee, to whom was referred the conpose, and that the exccution so issued should be sideration of the expediency of repealing or mo satisfied by the distress and sale of all the delin-difying the law passed at the last session, relative quent's property and that of his securities, one of to the compensation of members of Congress, ask the most formidable obstacles to the annual settle-leave to REPORT ment of the public accounts would be surmounted. The power, vested in Congress by the consti It is believed that there is no constitutional ob-tution, of providing for the pay of its own mem jection to the adoption of this principle, in rela-bers, is, doubtless, a delicate trust; and it might tion to the officers of the government, who im- have been apprehended, as well from the nature properly withhold the public money. Under the of the subject, as from former experience, that the law imposing the direct tax, the collector, on de- most judicious exercise of that trust would not be fault of payment, is authorized to make the amount exempt from some degree of public animadversion. due by the levy and sale of the defaulter's proper-The committee, however, cannot perceive, either ty. In this case there is, on the part of the de-in the increase of compensation provided by the faulter, nothing but a breach of the general impli-late act, or in the mode of making that compens ed obligation which every citizen owes to the tion, cause of excitement or alarm, adequate to community, to contribute to the wants of the the effects which are understood to have been State, in proportion to the property which he produced. The addition which this law has made possesses. This breach may frequently be the re- to the public expenditure is not considerable; and sult of inevitable necessity, and but seldom brings if it had been created by other measures of gohis integrity in question. In the case of the de-vernment, would not, probably, of itself, have been linquent officer, there is, in most cases, a direct breach of special confidence involving the odious charge of peculation or embezzlement. Is there any reason why the remedy of the government should be more summary in the former than in the latter case? Is there not, on the contrary, a clear distinction between the two cases entirely in favor of the tax defaulter? Can it be considered more important to the community that the reve nue should be rigidly collected, than that it should thought worthy of great attention. And the change in the mode of compensation, even if it be not attended with real and manifest advantages, does not still appear to be wrong, so clearly, and in such dangerous measure, as to furnish grounds for any high degree of public inquietude. The committee, therefore, cannot but be of opinion, that the law in question has not been considered without some mixture of misapprehension of its principles and objects, and that a more accurate knowledge of its provisions, and more mature re-ed and perverted to the purposes of obloquy and flection on its design and tendency, if they should reproach. The committee cannot yet believe that not end in a conviction of its usefulness, would yet a faithful discharge of duty, in the face of these result in a different and far more moderate esti- probable consequences, is to be reckoned among mate of its probable evils. It would not become dangerous political errors. the committee to claim any infallibility for the At the commencement of this government, it body of which they are members, nor to take it was of course among its first measures to fix, by for granted, that every law which it may pass, law, agreeably to the requisition of the constitution, must, necessarily, be a wise and wholesome act of the pay of members of Congress. In the old Conlegislation. Human errors and imperfections find gress under the confederation, the members were their way into all bodies. And there is, doubtless, paid, not out of the national treasury, but, by the existing in the judgment of the community, a pow-States which they represented. The rates of er under whose revision this and other acts of compensation were different in different States: government must and ought to pass. If, however, some States paid to its delegates eight dollars a on a review of this subject, the House should still day; others six; others less; and one State at be of opinion, that. the law in question, or some least paid them by an annual provison of six hunequivalent provision, has become essentially neces-dred pounds sterling. It was natural to recur to sary for the useful exercise of the powers of go-these precedents, when the subject was taken up vernment, and for the safety, security, and honor by the first Congress, under this constitution. Takof the people themselves, its members may still ing as a just and obvious standard, by which to hope, that in not hastily departing from it, they regulate the amount of compensation, the average will be justified by the enlightened sense and ge- of the rates which had been paid by the different nerous sentiments of the nation. The abandon-States, to their delegates in the old Congress, it ment of a measure, which according to their most was found that such average amounted to some. conscientious conviction, is intimately connected what more than six dollars a day. The compenwith the general good, would be no means of ob-sation was accordingly fixed at six dollars a day, taining favor with the American people. by the law of 1789. If, in passing the law in question, the house of re- As it was foreseen, that the depreciation of presentatives discharged any portion of its duty, money, or the increased expense of living, might it acted upon general and public principles, with render this provision inadequate, the law was an entire disregard to the convenience of its own limited in its duration, in order that it might be members, any further than their convenience was considered and altered, if necessary, at a future supposed to be connected with the public service. period. The subject was again brought before It treated the question, not as one between them congress, in 1796, by the expiration of the former and the public, but as exclusively of public and law. On this occasion, as, the committee have national concern. It regarded it as a subject of learned, and indeed as some of them remember, general policy, by which the nation, and the na- there was much diversity of opinion in the house tion only, was to be affected; as much so as any of representatives; some members wished, then, other act of legislation whatever. Any imputa- to change the mode from a daily sum to an annual tion, so gross as to impeach its conduct in this allowance; others preferred to retain the existing essential particular, a feeling of self respect must mode, but to increase the sum; and a committee compel the house to pass over in silence, and its of the house reported in favour of increasing the members must rely on their known character, as daily pay to eight dollars, assigning for reason & members of the government, and as citizens of proportionate increase in the price of all commothe community, to disprove it. The house would|| dities, and the expense of living, since the passage not presume to judge whether its services, in the of the first act. Those who opposed this augmenvarious and important matters upon which it has tation, admitted it would be reasonable, if the acted, have deserved any consideration or respect price of commodities, and the expense of living from the public; but for those services, such as should keep up; but they hoped the rise would they are, it has not sought, nor would ac-be temporary, and that money would soon resume, cept, any reward which could be measured out to it in a mere pecuniary compensation. And while the members of the house would certainly not think of claiming any merit for passing the law in question, any more than for the discharge of what they thought their duty in any other case, the committee do not see that they have any cause for taking humiliation upon themselves, on account of having passed an act which they believed would be essentially useful to the country, but which they must have foreseen would be exposed itself, and might expose its authors, to misappre-pense of living, instead of returning to its former hension and misrepresentation of all sorts. Holding rate, as was expected by some, has gone on inoffices in the immediate gift of the people, of creasing progressively, until money, in relation to short duration, and at a time when the people the means of life, does not retain more than half its were soon to exercise, in most districts, their ac- former value. In other words, if six dollars a day customed privilege of a new election, if these of- was no more than a reasonable provision, in the fices had been objects of their regard, and if they cities of Philadelphia and New-York, eight and had permitted personal considerations to influence twenty years ago, twelve dollars would not be their conduct, it is obvious that all such conside-more than a reasonable and equal provision in the rations pointed to a course different from that city of Washington, at the present time. Forty which they pursued. They must have known years ago, as has been stated above, some of the that no measure could be more easily misconstru-l States paid their delegates in Congress eight dol in relation to the expense of living, its former value. The proposition to increase the pay was lostby one or two votes only, and a law passed esta||blishing the former rate. The state of things existing in the government and in the country, from 1796, to the close of the late war, furnish obvious reasons to account for the circumstance, that during that period no attempt was made to raise the pay of members of Congress. In the mean time the seat of government had been transferred to the city of Washington, and the ex |