in Alaska, the salaries and actual traveling expenses of such officials, and for such other expenditures as may be necessary to carry out the provisions of this Act". (16) The proviso at the end of the first full paragraph on page 456 of volume 32 of the Statutes at Large, in the Act of June 28, 1902 (U. S. C., title 31, sec. 583 (20)).

(17) The second full paragraph on page 841 of volume 38 of the Statutes at Large, in the Act of March 3, 1915 (U. S. C., title 31, sec. 583 (21)).

(18) The fourth full paragraph on page 2 of volume 38 of the Statutes at Large, in the Act of May 1, 1913 (U. S. C., title 31, sec. 583 (22)).

(19) The proviso at the end of the second paragraph under the heading "Bureau of Immigration and Naturalization" of the Act of March 4, 1907 (34 Stat. 1329, 1330; U. S. C., title 31, sec. 583 (23)).

(20) The second full paragraph on page 374 of volume 35 of the Statutes at Large, in the Act of May 27, 1908 (U. S. C., title 31, sec. 583 (25)).

(21) So much of the last paragraph on page 396 of volume 37 of the Statutes at Large, in the Act of August 23, 1912 (U. S. C., title 31, sec. 583 (26)), as reads: "For the fiscal year nineteen hundred and fourteen and annually thereafter estimates in detail shall be submitted for all personal services required in the Indian Office,".

(22) The proviso at the end of the first full paragraph on page 646 of voume 41 of the Statutes at Large, in the Act of May 29, 1920 (U. S. C., title 31, sec. 584). (23) Section 3660 of the Revised Statutes (U. S. C., title 31, sec. 585).

(24) Section 4 of the Act of June 22, 1906 (34 Stat. 448; U. S. C., title 31, sec. 586).

(25) Section 4 of the Act of March 4, 1909 (35 Stat. 907; U. S. C., title 31, sec. 587).

(26) Section 2 of the Act of June 30, 1906 (34 Stat. 762; U. S. C., title 31, sec. 588); and the proviso in the first paragraph on page 1367 of volume 34 of the Statutes at Large, in the Act of March 4, 1907 (U. S. C., title 31, sec. 588).

(27) Section 3661, as amended, of the Revised Statutes (U. S. C., title 31, sec. 589).

(28) So much of the first paragraph on page 255 of volume 24 of the Statutes at Large, in the Act of August 4, 1886 (U. S. C., title 31, sec. 590), as reads: ": Provided further, That all printing and engraving for the Geological Survey, the Coast and Geodetic Survey, the Hydrographic Office of the Navy Department, and the Signal Service shall hereafter be estimated for separately and in detail, and appropriated for separately for each of said bureaus".

(29) Section 3662 of the Revised Statutes (U. S. C., title 31, sec. 591). (30) Section 3663 of the Revised Statutes, as amended (U. S. C., title 31, sec. 594).

(31) Section 3664 of the Revised Statutes (U. S. C., title 31, sec. 597). (32) Section 3665 of the Revised Statutes (U. S. C., title 31, sec. 598). (33) The second paragraph under the heading "Revenue Cutter Service" in the Act of March 2, 1889 (25 Stat. 907; U. S. C., title 31, sec. 600).

(34) So much of the second full paragraph on page 512 of volume 24 of the Statutes at Large, in the Act of March 3, 1887 (U. S. C., title 31, sec. 601), as reads: "That the Secretary of the Treasury shall for the fiscal year eighteen hundred and eighty-seven, and for each fiscal year thereafter in the annual estimates, report to Congress the number of persons employed outside of the District of Columbia, as superintendents, clerks, watchmen and otherwise, and paid from appropriations for the construction of public buildings showing where said persons are employed, in what capacity, the length of time and at what rate of compensation,".

(35) So much of the sixth full paragraph on page 374 of volume 26 of the Statutes at Large, in the Act of August 30, 1890 (U. Ŝ. Č., title 31, sec. 601) as reads: "; and hereafter the Secretary of the Treasury shall annually report to Congress in the book of estimates a statement of the expenditure of the appropriation for 'repairs and preservation of public buildings' which shall show the amount expended on each public building and the number of persons employed and paid salaries from such appropriation."

(36) So much of section 1317 of the Revenue Act of 1921 (42 Stat. 314; U. S. C., title 31, sec. 602) as reads: "; and the Secretary of the Treasury shall submit for the fiscal year 1921, and annually thereafter, an estimate of appropriations to refund and pay back duties or taxes erroneously or illegally assessed or collected under the Internal Revenue laws, and to pay judgments, including interest and costs, rendered for taxes or penalties erroneously or illegally assessed or collected under the Internal Revenue laws".

(37) The first paragraph on page 133 of volume 22 of the Statutes at Large, in the Act of July 1, 1882 (U. S. C., title 31, sec. 603).

(38) The eighth paragraph under the heading "Foreign Intercourse" of the Act of May 3, 1905 (33 Stat. 1214; U. S. C., title 31, sec. 603).

(39) The last paragraph on page 48 of volume 30 of the Statutes at Large, in the Act of June 4, 1897 (U. S. C., title 31, sec. 604).

(40) The eighth paragraph under the heading "Under the Engineer Department" of the Act of February 13, 1913 (37 Stat. 671; U. S. C., title 31, sec. 605). (41) The sixth paragraph under the heading "Fortifications in Insular Possessions" of the Act of March 3, 1905 (33 Stat. 847; U. S. C., title 31, sec. 606).

(42) So much of the first section of the Act of August 4, 1886 (24 Stat. 246; U. S. C., title 31, sec. 607), as reads: "the estimates for the Army and Navy hospital service shall be submitted as a part of the military establishment."

(43) The first full paragraph on page 117 of volume 31 of the Statutes at Large, in the Act of April 17, 1900 (U. S. C., title 31, sec. 609).

(44) Section 3668 of the Revised Statutes (U. S. C., title 31, sec. 610).

(45) So much of the first paragraph on page 357 of volume 20 of the Statutes at Large, in the Act of March 3, 1879 (U. S. C., title 31, sec. 611), as reads: ": Provided, That hereafter, in making his estimates for railway mail service, the Postmaster General shall separate the estimate for postal-car service from the general estimates; and in case any increase or diminution of service by postal cars shall be made by him, the reasons therefor shall be given in his annual report next succeeding such increase or diminution".

(46) So much of the first paragraph under the heading "United States Geological Survey" in the Act of March 3, 1887 (24 Stat. 527; U. S. C., title 31, sec. 612), as reads: "; and hereafter the estimates for the Geological Survey shall be itemized".

(47) The first paragraph on page 455 of volume 32 of the Statutes at Large, in the Act of June 28, 1902 (U. S. C., title 31, sec. 612).

(48) Section 4 of the Act of August 15, 1876 (19 Stat. 200; U. S. C., title 31, sec. 613).

(49) The fourth paragraph of section 26 of the Act of June 30, 1913 (38 Stat. 103; U. S. C., title 31, sec. 613).

(50) The eighth full paragraph on page 1421 of volume 36 of the Statutes at Large, in the Act of March 4, 1911 (U. S. C., title 31, sec. 614).

(51) The eighth full paragraph on page 1206 of volume 33 of the Statutes at Large, in the Act of March 3, 1905 (U. S. C., title 31, sec. 615).

(52) The fourth full paragraph under the heading "Government in the Territories" of the Act of July 16, 1914 (38 Stat. 479; U. S. C., title 31, sec. 616).

(53) The first full paragraph on page 492 of volume 39 of the Statutes at Large, in the Act of August 11, 1916 (U. S. C., title 31, sec. 617).

(54) The proviso in the first paragraph under the heading "Rent in the District of Columbia" of the Act of March 4, 1915 (38 Stat. 1108; U. S. C., title 31, sec. 617).

(55) Paragraph (89) of section 1 of the Act of May 29, 1928 (45 Stat. 992; U. S. C., title 31, sec. 617).

(56) The seventh paragraph on page 433 of volume 32 of the Statutes at Large, in the Act of June 28, 1902 (U. S. C., title 31, sec. 618).

(57) The ninth full paragraph on page 755 of volume 36 of the Statutes at Large, in the Act of June 25, 1910 (U. S. C., title 31, sec. 618).

(58) The fourth full paragraph on page 362 of volume 27 of the Statutes at Large, in the Act of August 5, 1892 (U. S. C., title 31, sec. 619).

(59) The first full paragraph on page 764 of volume 36 of the Statutes at Large, in the Act of June 25, 1910 (U. S. C., title 31, sec. 620).

(60) Section 6 of the Act of August 1, 1914 (38 Stat. 679; U. S. C., title 31, sec. 621).

(61) The last full sentence in the first paragraph on page 254 of volume 23 of the Statutes at Large, in the Act of July 7, 1884 (U. S. Č., title 31, sec. 622). (62) Section 5 of the Act of June 30, 1906 (34 Stat. 763; U. S. C., title 31, sec. 626).

(63) The proviso at the end of the first paragraph on page 579 of volume 37 of the Statutes at Large, in the Act of August 24, 1912 (U. S. C., title 31, sec. 626). (64) Section 7, as amended, of the Act of August 26, 1912 (37 Stat. 626; 37 Stat. 790; Ú. S. C., title 31, sec. 629).

(65) The fourth full paragraph on page 854 of volume 37 of the Statutes at Large, in the Act of March 4, 1913 (U. S. C., title 31, sec. 630).

(66) The proviso at the end of the seventh paragraph on page 1030 of volume 31 of the Statutes at Large, in the Act of March 3, 1901 (U. S. C., title 31, sec. 633). (67) The second paragraph under the heading "Contingent, Bureau of Órd

nance" of the Act of July 12, 1921 (42 Stat. 128; U. S. C., title 31, sec. 636), down through the first proviso therein.

(68) So much of the third paragraph under the heading "Contingent Expenses, Navy Department" of the Act of June 22, 1906 (34 Stat. 427; U. S. C., title 31, sec. 637), as reads: "and hereafter it shall not be lawful to expend, for any of the offices or bureaus of the Navy Department at Washington, any sum out of appropriations made for the naval establishment for any of the purposes mentioned or authorized in the said foregoing paragraph.'

(69) So much of the paragraph under the heading "Increase of the Navy, Equipment" of the Act of March 3, 1915 (38 Stat. 952; U. S. C., title 31, sec. 648), as reads: "and beginning with July first, nineteen hundred and fifteen, equipment outfits shall be charged to appropriation 'Increase of the Navy, Construction and Machinery'".

(70) The two provisos in the paragraph under the heading "Fuel and Transportation" of the Act of March 3, 1915 (38 Stat. 944; U. S. C., title 31, sec. 649).

(71) The proviso in the tenth paragraph on page 236 of volume 28 of the Statutes at Large, in the Act of August 6, 1894 (U. S. C., title 31, sec. 650).

(72) The fourth full paragraph on page 1175 of volume 34 of the Statutes at Large, in the Act of March 2, 1907 (U. S. C., title 31, sec. 655).

(73) So much of the first full paragraph on page 1391 of volume 42 of the Statutes at Large, in the Act of March 2, 1923 (U. S. C., title 31, sec. 656), as reads: "and the Budget estimates for each of such appropriations shall hereafter carry separately the amounts required for such transportation costs".

(74) The proviso in the seventh full paragraph on page 520 of volume 32 of the Statutes at Large, in the Act of June 30, 1902 (U. S. C., title 31, sec. 657).

(75) The proviso in lines 2 through 8 on page 710 of volume 36 of the Statutes at Large, in the Act of June 25, 1910 (U. S. C., title 31, sec. 664).

(76) Section 3682 of the Revised Statutes (U. S. C., title 31, sec. 674). (77) Section 3683 of the Revised Statutes (U. S. C., title 31, sec. 675). (78) The second full paragraph on page 1303 of volume 41 of the Statutes at Large, in the Act of March 3, 1921 (U. S. C., title 31, sec. 676).

(79) The proviso in lines 7 through 17 on page 203 of volume 20 of the Statutes at Large, in the Act of June 19, 1878 (U. S. C., title 31, sec. 677).

(80) Section 3684 of the Revised Statutes (U. S. C., title 31, sec. 681). (81) Section 6 of the Act of May 30, 1908 (U. S. C., title 31, sec. 683).

(82) So much of the paragraph under the heading "Pay of Assistant Custodians and Janitors" on pages 1153 and 1154 of volume 31 of the Statutes at Large, in the Act of March 3, 1901 (U. S. C., title 31, sec. 684), as reads: ", and hereafter no other fund appropriated shall be used for this service".

(83) The second paragraph under the heading "United States Commerce Court" of the Act of March 4, 1911 (36 Stat. 1234; U. S. C., title 31, sec. 687). (84) Section 26 of the Act of June 30, 1913 (38 Stat. 103; U. S. C., title 31, sec. 688).

(85) Section 400 of the Second Deficiency Appropriation Act, 1947 (U. S. C., title 31, sec. 694).

(86) Section 204 of the Budget and Accounting Act, 1921, as amended (U. S. C., title 31, sec. 581).

(b) The omission of any provision of law from the provisions of law repealed under subsection (a) of this section shall not be construed as limiting the application of section 204 201 or 216 of the Budget and Accounting Act, 1921, as amended, or the powers of the President thereunder, or as evidencing an intent that such provision was not to be superseded by such sections.

The CHAIRMAN. Senator McCarthy, the author of the bill, will make a statement of such length as he deems necessary to present his views on the measure.

STATEMENT OF HON. JOSEPH R. McCARTHY, UNITED STATES
SENATOR FROM THE STATE OF WISCONSIN

Senator MCCARTHY. It will be rather brief, Mr. Chairman.
Almost 150 years ago, Thomas Jefferson stated:

The books of the Government should be as plain as those of a simple farmer. This, I think, should be the end toward which we strive today in our hearings on the reforms suggested by the Hoover Commission.

We would be naive if we were to hope that we can fulfill the wishes of Mr. Jefferson. But, we in Congress can, for the first time in 29 years, take a very affirmative step in that direction. The need for the legislation I propose is not new. Passage of the Budgeting and Accounting Act of 1921 was meant to solve the grievous deficiencies discovered by the Taft Commission in 1912-9 years before. Yet apparently it failed to do so, for, in 1924, we find the Joint Commission on Reorganization of Government Departments making_recommendations for moving the General Accounting Office to the Treasury Department.

Congress wisely decided that this should not be done, because it would have placed all authority for the Federal accounts in the executive branch. Congressional controls would have disappeared. This temporary resolution did not cause the problem to die.

Again in 1932 the problem came to the forefront. Then, President Hoover recommended to Congress in a reorganization plan:

Now, therefore, by virtue of the authority so vested in me, I hereby order that the following transfers be made to the Bureau of the Budget:

1. The powers and duties now exercised by the General Accounting Office which relate to the designing, prescribing, and installation of accounting forms, systems, and procedure in the several executive departments and independent establishments, except that the Comptroller General shall retain the power and duty to prescribe the form and manner in which accounts shall be submitted to his office for audit.

2. The powers and duties now exercised by the General Accounting Office which relate to the administrative examination of fiscal officers' accounts and claims against the United States, and the adequacy and effectiveness of the administrative examination of accounts and claims in the respective departments and establishments, and the adequacy and effectiveness of departmental inspection of the offices and accounts of fiscal officers.

The President's reason for this recommendation was stated in his message as follows:

It is not, however, a proper function of an establishment created primarily for the purpose of auditing Government accounts to make the necessary studies and to develop and prescribe accounting systems involving the entire field of Government accounting. Neither is it a proper function of such an establishment to prescribe the procedure for nor to determine the effectiveness of the administrative examination of accounts. Accounting is an essential element of effective administration, and it should be developed with the primary objective of servicing this purpose.

In the political exigencies of the times, this nonpolitical move was vetoed. Again the problem was not solved by congressional inaction. It cropped up again forcibly in 1937 in the recommendations of President Roosevelt's Committee on Administrative Management. The fifth and last major recommendation of this expert group was, in Mr. Roosevelt's own words:

5. Establish accountability of the Executive to the Congress by providing a genuine independent_post-audit of all fiscal transactions by an auditor general, and restore to the Executive complete responsibility for accounts and current transactions.

As you will see, this program rests solidly upon the Constitution and upon the American way of doing things. There is nothing in it which is revolutionary, as every element is drawn from our own experience either in Government or largescale business.

I endorse this program and feel confident that it will commend itself to you also with your knowledge of government, and to the vast majority of the citizens of the country who want and believe in efficient self-government.

* * * What I am placing before you is not the request for more power, but the tools of management and the authority to distribute the work so that the

President can effectively discharge those powers which the Constitution now places upon him. Unless we are prepared to abandon this important part of the Constitution, we must equip the President with authority commensurate with his responsibilities under the Constitution.

There were, in 1937 as now, urgent reasons for reform shown in the committee's findings.

In both the 1932 and 1937 instances, it was proposed that the Congress should retain the power and facilities to audit. These two plans did not suffer from the weakness of the 1924 plan, which would have transferred everything. Yet they, too, were beaten.

Still later, in 1949, the Hoover Commission found the Federal Government still "lacking a formal accounting plan. A majority of the Commission made moderate recommendations for reform.

That, Mr. Chairman, is the woeful history of improvements in the accounting of our Government. Twenty-nine years, and the problem still sits on dead center.

The bill introduced represents one more effort to clarify the fiscal situation of our Government.

Accounting is the main sore point in our fiscal situation. Budgeting, thanks to the Hoover report and the herculean efforts of the Budget Director, is on the way to solution. Experts outside Government, on the other hand, agree that the accounting is far from satisfactory, despite the 29 years since the Budgeting and Accounting Act of 1921. I might say also despite the fact that we have in Mr. Lindsay Warren one of the most competent men in Government.

With this in mind, some of our colleagues and I will introduce soon two new bills, or amendments to the pending bill, which will enable this committee to consider accounting, the sore spot, separately from budgeting. As the chairman knows, we introduced the bill S. 2054 last year. What we propose to do now, Mr. Chairman, is to introduce two bills or amendments to separate the accounting provisions from the budgeting provisions. Those bills have been drafted by the Hoover Commission staff and are ready for presentation to the chairman in the very near future.

(Drafts of the two bills referred to are on file with the committee.) The CHAIRMAN. They are contained in the amendments to this bill? Senator MCCARTHY. There are some changes, Mr. Chairman. It is in accounting that majori mprovements must be made by drastic new legislative moves. The budgeting bill will largely merely write into the law the program budget to guard it from future attacks.

We in the Congress are a board of directors for the Government. We cannot permit a second-rate accounting system to exist. If outside experts raised the similar criticisms in a private business and nothing were done, the directors would surely be sued. We cannot shirk our responsibilities as the previous 12 Congresses have done.

In the next few days we shall hear of progress being made by the joint accounting project of the Budget-Treasury-General Accounting Office. I am sure that progress is being made. I am equally sure it will prove slow footing unless this legislation is passed.

We may be told that this matter was outside the frame of reference of the Hoover Commission. That is a legal question I shall not attempt to answer. It certainly is not outside the powers of this committee.