Part 7

It may, therefore, be accounted one of the customary advantages which our federal government possesses over the governments of the States, that it has almost always, in ordinary times, derived its entire revenue from prompt and facile indirect taxes, whilst the States have had to live upon the tardy and begrudged income derivable from a direct levy. Since we have had to support two governments it has been wisely resolved to let us, as long as possible, feel the weight of only one of them,--and that the one which can get at us most readily, and, at the same time, be most easily and promptly controlled by our votes. It is a plain, convenient, and, on the whole, satisfactory division of domain, though the responsibility which it throws on state legislatures is more apt to pinch and prove vexatious than is that which it lays upon Congress. Mr. Gladstone, the greatest of English financiers, once playfully described direct and indirect taxes as two sisters,--daughters of Necessity and Invention,--"differing only as sisters may differ, ... the one being more free and open, the other somewhat more shy, retiring, and insinuating;" and frankly owned that, whether from "a lax sense of moral obligation or not," he, as Chancellor of the Exchequer, "thought it not only allowable, but even an act of duty, to pay his addresses to them both." But our chancellors of the exchequer, the chairmen of the Committee of Ways and Means, are bound by other traditions of courtship, and have, besides, usually shown no susceptibility to the charms of the blunt and forward elder of these two sisters. They have been constant, even if now and again a little wayward, in their devotion to the younger.

I suppose that no one ever found the paths of finance less thorny and arduous than have our national publicists. If their tasks be compared with those of European and English financiers, it is plain to see that their lines have fallen in pleasant places. From almost the very first they have had boundless resources to draw upon, and they have certainly of late days had free leave to spend limitless revenues in what extravagances they pleased. It has come to be infinitely more trouble to spend our enormous national income than to collect it. The chief embarrassments have arisen, not from deficits, but from surpluses. It is very fortunate that such has been the case, because for the best management of the finances of a nation, when revenue is scant and economy imperative, it is absolutely necessary to have financial administration in the hands of a few highly-trained and skillful men acting subject to a very strict responsibility, and this is just what our committee system does not allow. As in other matters of legislation, so in finance, we have many masters acting under a very dim and inoperative accountability. Of course under such ministration our financial policy has always been unstable, and has often strayed very far from the paths of wisdom and providence; for even when revenue is superabundant and extravagance easy, irresponsible, fast and loose methods of taxation and expenditure must work infinite harm. The only difference is that during such times the nation is not so sensitive to the ill effects wrought by careless policy. Mismanagement is not generally blamed until a great many people have discovered it by being hurt by it. Meantime, however, it is none the less interesting and important to study our government, with a view to gauging its qualities and measuring accurately its capabilities for good or bad service; and the study can doubtless be much more dispassionately conducted before we have been seriously hurt by foolish, unsteady administration than afterwards. The forces of the wind can be reckoned with much more readily while they are blowing only a gale than after they have thrown a hurricane upon us.

The national income is controlled by one Committee of the House and one of the Senate; the expenditures of the government are regulated by fifteen Committees of the House and five of the Senate; and the currency is cared for by two Committees of the House and one of the Senate; by all of which it appears that the financial administration of the country is in the hands of twenty-four Committees of Congress,--a mechanism of numerous small and great functions, quite complex enough to be worth careful study, perhaps too complex to be studied directly without an aiding knowledge of some simpler system with which it may be compared. Our own budget may be more readily followed through all the vicissitudes of committee scrutiny, and all the varied fortunes of committee action, after one has traced some other budget through the simpler processes of some other system of government.

The British system is, perhaps, in its main features, the simplest in existence. It is, besides, the pattern after which the financial systems of the chief governments of Europe have been modeled, and which we have ourselves in a measure copied; so that by prefacing the study of other systems by a careful examination of the British, in its present form, one may start with the great advantage of knowing the characteristics of what may fairly be called the parent stock. Parliament, then, in the first place, simply controls, it does not originate, measures of financial administration. It acts through the agency and under the guidance of the ministers of the Crown. Early in each annual session "the estimates" are submitted to the Commons, which, when hearing such statements, sits in Committee of the Whole House, known as Committee of Supply. The estimates come before the House in truly formidable shape. Each department presents its estimates in a huge quarto volume, "crammed with figures and minute entries of moneys wanted for the forthcoming year." But the House itself does not have to digest this various and overwhelming mass of figures. The digesting is done in the first instance by the official leaders of the House. "The ministers in charge of the naval and military services lay before the Committee [of Supply] their respective statements of the sums which will be required for the maintenance of those services; and somewhat later in the session a common estimate for the various civil services is submitted also." Those statements are, as it were, condensed synopses of the details of the quartos, and are made with the object of rendering quite clear to the House, sitting under the informal rules of Committee, the policy of the expenditures proposed and the correctness of the calculations upon which they are based. Any member may ask what pertinent questions he pleases of the minister who is making the statement, so that nothing needing elucidation may be passed by without full explanation. After the statement has been completed to the satisfaction of the Committee, a vote is taken, at the motion of the minister, upon each item of expenditure, and the duties of the Committee of Supply have been performed.

The estimates are always submitted "on the collective responsibility of the whole cabinet." "The army and navy estimates have, as a rule, been considered and settled in cabinet council before being submitted to the House; and the collective responsibility of the Ministry is in this case, therefore, not technical merely, but substantial." If the estimates are resisted and rejected by the Committee, the ministers, of course, resign. They "cannot acquiesce in a refusal on the part of parliament to sanction the expenditure which" they "have assumed the responsibility of declaring necessary for the support of the civil government, and the maintenance of the public credit at home and abroad." The votes in Committee of Supply are, therefore, vital in the history of every administration, being taken as sure indexes of the amount of confidence placed by the House in the government.

But the votes in Committee of Supply are only the first steps in parliament's annual supervision of the public finances. They are simply the spending votes. In order to consider the means by which money is to be raised to meet the outlays sanctioned by the Committee of Supply, the House resolves itself into Committee of the Whole, under the name of the Committee of Ways and Means. It is to this Committee that the Chancellor of the Exchequer submits his budget every year, on or soon before the fifth of April, the date at which the national accounts are made up, the financial year closing on the thirty-first of March. In order to prepare his budget, the Chancellor must of course have early knowledge of the estimates made for the various services. Several months, therefore, before the estimates are laid before the House in Committee of Supply, the various departments are called upon by the Treasury to send in statements of the sums required to defray the expenses of the current year, and these estimates are carefully examined by the Chancellor, with a view not only to exercising his duty of keeping the expenditures within the limits of economy, but also to ascertaining how much revenue he will have to secure in order to meet the proper expenditure contemplated. He must balance estimated needs over against estimated resources, and advise the House in Committee of Ways and Means as to the measures by which taxation is to be made to afford sufficient revenue. Accordingly he calls in the aid of the permanent heads of the revenue departments who furnish him with "their estimates of the public revenue for the ensuing year, upon the hypothesis that taxation will remain unchanged."

Having with such aids made up his budget, the Chancellor goes before the Committee of Ways and Means prepared to give a clear history of the financial administration of the year just closed, and to submit definite plans for adjusting the taxation and providing for the expected outlays of the year just opening. The precedents of a wise policy of long standing forbid his proposing to raise any greater revenue than is absolutely necessary for the support of the government and the maintenance of the public credit. He therefore never asks the Committee to lay taxes which promise a considerable surplus. He seeks to obtain only such an over-plus of income as will secure the government against those slight errors of underestimation of probable expenses or of overestimation of probable revenue as the most prudent of administrations is liable to make. If the estimated revenue considerably exceed the estimated expenses, he proposes such remissions of taxation as will bring the balance as near equality as prudence will permit; if the anticipated expenses run beyond the figure of the hoped-for revenue, he asks that certain new taxes be laid, or that certain existing taxes be increased; if the balance between the two sides of the forecast account shows a pretty near approach to equilibrium, so the scale of revenue be but a little the heavier of the two, he contents himself with suggesting such a readjustment of existing taxes as will be likely to distribute the burden of taxation more equitably amongst the tax-paying classes, or facilitate hampered collections by simplifying the complex methods of assessment and imposition.

Such is the budget statement to which the House of Commons listens in Committee of Ways and Means. This Committee may deal with the proposals of the Chancellor of the Exchequer with somewhat freer hand than the Committee of Supply may use in passing upon the estimates. The Ministry is not so stiffly insistent upon having its budget sanctioned as it is upon having its proposed expenditures approved. It is understood to pledge itself to ask for no more money than it honestly needs; but it simply advises with the House as to the best way of raising that money. It is punctiliously particular about being supplied with the funds it asks for, but not quite so exacting as to the ways and means of supply. Still, no Ministry can stand if the budget be rejected out of hand, or if its demands for the means of meeting a deficiency be met with a flat refusal, no alternative means being suggested by the Opposition. Such votes would be distinct declarations of a want of confidence in the Ministry, and would of course force them to resign.

The Committee of Ways and Means, then, carries out, under the guidance of the Chancellor of the Exchequer, the resolutions of the Committee of Supply. The votes of the latter Committee, authorizing the expenditures mapped out in the estimates, are embodied in "a resolution proposed in Committee of Ways and Means for a general grant out of the Consolidated Fund 'towards making good the supply granted to Her Majesty;'" and that resolution, in order that it may be prepared for the consideration of the House of Lords and the Crown, is afterwards cast by the House into the form of a Bill, which passes through the regular stages and in due course becomes law. The proposals of the Chancellor of the Exchequer with reference to changes in taxation are in like manner embodied in resolutions in Committee of Ways and Means, and subsequently, upon the report of the Committee, passed by the House in the shape of Bills, "Ways and Means Bills" generally pass the Lords without trouble. The absolute control of the Commons over the subjects of revenue and supply has been so long established that the upper House would not now dream of disputing it; and as the power of the Lords is simply a privilege to accept or reject a money bill as a whole, including no right to amend, the peers are wont to let such bills go through without much scrutiny.

But so far I have spoken only of that part of parliament's control of the finances which concerns the future. The "Ways and Means Bills" provide for coming expenses and a prospective revenue. Past expenses are supervised in a different way. There is a double process of audit by means of a special Audit Department of the Civil Service, which is, of course, a part of the permanent organization of the administration, having it in charge "to examine the accounts and vouchers of the entire expenditure," and a special committee nominated each year by the House "to audit the Audit Department." This committee is usually made up of the most experienced business men in the Commons, and before it "all the accounts of the completed financial year are passed in review." "Minute inquiries are occasionally made by it into the reasons why certain items of expenditure have occurred; it discusses claims for compensation, grants, and special disbursements, in addition to the ordinary outgoings of the department, mainly, to be sure, upon the information and advice of the departments themselves, but still with a certain independence of view and judgment which must be valuable."

The strictness and explicitness with which the public accounts are kept of course greatly facilitate the process of audit. The balance which is struck on the thirty-first of every March is of the most definite sort. It deals only with the actual receipts and disbursements of the completed fiscal year. At that date all unexpended credits lapse. If the expenditure of certain sums has been sanctioned by parliamentary vote, but some of the granted moneys remain undrawn when April comes in, they can be used only after a regrant by the Commons. There are, therefore, no unclosed accounts to obscure the view of the auditing authorities. Taxes and credits have the same definite period, and there are no arrears or unexpended balances to confuse the book-keeping. The great advantages of such a system in the way of checking extravagances which would otherwise be possible, may be seen by comparing it with the system in vogue in France, in whose national balance-sheet "arrears of taxes in one year overlap with those of other years," and "credits old jostle credits new," so that it is said to be "always three or four years before the nation can know what the definitive expenditure of a given year is."

For the completion of this sketch of financial administration under the Commons it is of course necessary to add a very distinct statement of what I may call the accessibility of the financial officers of the government. They are always present to be questioned. The Treasury department is, as becomes its importance, exceptionally well represented in the House. The Chancellor of the Exchequer, the working chief of the department, is invariably a member of the Commons, "and can be called to account by interrogation or motion with respect to all matters of Treasury concern"--with respect, that is, to well-nigh "the whole sphere of the discipline and economy of the Executive Government;" for the Treasury has wide powers of supervision over the other departments in all matters which may in any way involve an outlay of public money. "And not only does the invariable presence of the Chancellor of the Exchequer in the House of Commons make the representation of that department peculiarly direct, but, through the Secretary of the Treasury, and, with respect to certain departmental matters, through the Junior Lords, the House possesses peculiar facilities for ascertaining and expressing its opinion upon the details of Treasury administration." It has its responsible servants always before it, and can obtain what glimpses it pleases into the inner workings of the departments which it wishes to control.

It is just at this point that our own system of financial administration differs most essentially from the systems of England, of the Continent, and of the British colonial possessions. Congress does not come into direct contact with the financial officers of the government. Executive and legislature are separated by a hard and fast line, which sets them apart in what was meant to be independence, but has come to amount to isolation. Correspondence between them is carried on by means of written communications, which, like all formal writings, are vague, or by means of private examinations of officials in committee-rooms to which the whole House cannot be audience. No one who has read official documents needs to be told how easy it is to conceal the essential truth under the apparently candid and all-disclosing phrases of a voluminous and particularizing report; how different those answers are which are given with the pen from a private office from those which are given with the tongue when the speaker is looking an assembly in the face. It is sufficiently plain, too, that resolutions which call upon officials to give testimony before a committee are a much clumsier and less efficient means of eliciting information than is a running fire of questions addressed to ministers who are always in their places in the House to reply publicly to all interrogations. It is reasonable to conclude, therefore, that the House of Representatives is much less intimately acquainted with the details of federal Treasury airs than is such a body as the House of Commons, with the particulars of management in the Treasury which it oversees by direct and constant communication with the chief Treasury officials.

This is the greater drawback in our system, because, as a further result of its complete separation from the executive, Congress has to originate and perfect the budget for itself. It does not hear the estimates translated and expounded in condensed statements by skilled officials who have made it their business, because it is to their interest, to know thoroughly what they are talking about; nor does it have the benefit of the guidance of a trained, practical financier when it has to determine questions of revenue. The Treasury is not consulted with reference to problems of taxation, and motions of supply are disposed of with no suggestions from the departments beyond an itemized statement of the amounts needed to meet the regular expenses of an opening fiscal year.

In federal book-keeping the fiscal year closes on the thirtieth of June. Several months before that year expires, however, the estimates for the twelve months which are to succeed are made ready for the use of Congress. In the autumn each department and bureau of the public service reckons its pecuniary needs for the fiscal year which is to begin on the following first of July (making explanatory notes, and here and there an interjected prayer for some unwonted expenditure, amongst the columns of figures), and sends the resulting document to the Secretary of the Treasury. These reports, including of course the estimates of the various bureaux of his own department, the Secretary has printed in a thin quarto volume of some three hundred and twenty-five pages, which for some reason or other, not quite apparent, is called a "Letter from the Secretary of the Treasury transmitting estimates of appropriations required for the fiscal year ending June 30," ... and which boasts a very distinct arrangement under the heads Civil Establishment, Military Establishment, Naval Establishment, Indian Affairs, Pensions, Public Works, Postal Service, etc., a convenient summary of the chief items, and a complete index.

In December this "Letter" is sent, as a part of the Secretary of the Treasury's annual report to Congress, to the Speaker of the House of Representatives, immediately after the convening of that body, and is referred to the Standing Committee on Appropriations. The House itself does not hear the estimates read; it simply passes the thin quartos over to the Committee; though, of course, copies of it may be procured and studied by any member who chooses to scrutinize the staring pages of columned figures with the dutiful purpose of keeping an eye upon the uses made of the public revenue. Taking these estimates into consideration, the Committee on Appropriations found upon them the "general appropriation bills," which the rules require them to report to the House "within thirty days after their appointment, at every session of Congress, commencing on the first Monday in December," unless they can give satisfactory reasons in writing for not doing so. The "general appropriation bills" provide separately for legislative, executive, and judicial expenses; for sundry civil expenses; for consular and diplomatic expenses; for the Army; for the Navy; for the expenses of the Indian department; for the payment of invalid and other pensions; for the support of the Military Academy; for fortifications; for the service of the Post-Office department, and for mail transportation by ocean steamers.

It was only through the efforts of a later-day spirit of vigilant economy that this practice of making the appropriations for each of the several branches of the public service in a separate bill was established. During the early years of the Constitution very loose methods of appropriation prevailed. All the moneys for the year were granted in a single bill, entitled "An Act making Appropriations for the support of the Government;" and there was no attempt to specify the objects for which they were to be spent. The gross sum given could be applied at the discretion of the heads of the executive departments, and was always large enough to allow much freedom in the undertaking of new schemes of administration, and in the making of such additions to the clerical force of the different offices as might seem convenient to those in control. It was not until 1862 that the present practice of somewhat minutely specifying the uses to be made of the funds appropriated was reached, though Congress had for many years been by slow stages approaching such a policy. The history of appropriations shows that "there has been an increasing tendency to limit the discretion of the executive departments, and bring the details of expenditure more immediately under the annual supervision of Congress;" a tendency which has specially manifested itself since the close of the recent war between the States. In this, as in other things, the appetite for government on the part of Congress has grown with that perfection of organization which has rendered the gratification of its desire for power easily attainable. In this matter of appropriations, however, increased care has unquestionably resulted in a very decided curtailment of extravagance in departmental expenditure, though Congress has often shown a blind ardor for retrenchment which has fallen little short of parsimony, and which could not have found place in its legislation had it had such adequate means of confidential communication with the executive departments as would have enabled it to understand their real needs, and to discriminate between true economy and those scant allowances which only give birth to deficiencies, and which, even under the luckiest conditions, serve only for a very brief season to create the impression which they are usually meant to beget,--that the party in power is the party of thrift and honesty, seeing in former appropriations too much that was corrupt and spendthrift, and desiring to turn to the good ways of wisdom and frugality.

There are some portions of the public expenditure which do not depend upon the annual gifts of Congress, but which are provided for by statutes which run without limit of date. These are what are known as the "permanent appropriations." They cover, on the one hand, such indeterminate charges as the interest on the public debt, the amounts annually paid into the sinking fund, the outlays of refunding, the interest on the bonds issued to the Pacific Railways; and, on the other hand, such specific charges as the maintenance of the militia service, the costs of the collection of the customs revenue, and the interest on the bequest to the Smithsonian Institution. Their aggregate sum constitutes no insignificant part of the entire public expense. In 1880, in a total appropriation of about $307,000,000, the permanent appropriations fell short of the annual grant by only about sixteen and a half millions. In later years, however, the proportion has been smaller, one of the principal items, the interest on the public debt, becoming, of course, continually less as the debt is paid off, and other items reaching less amounts, at the same time that the figures of the annual grants have risen rather than fallen.

With these permanent grants the Committee on Appropriations has, of course, nothing to do, except that estimates of the moneys to be drawn under authority of such grants are submitted to its examination in the Secretary of the Treasury's "Letter," along with the estimates for which special appropriations are asked. Upon these latter estimates the general appropriations are based. The Committee may report its bills at any stage of the House's business, provided only that it does not interrupt a member who is speaking; and these bills when reported may at any time, by a majority vote, be made a special order of the day. Of course their consideration is the most imperative business of the session. They must be passed before the end of June, else the departments will be left altogether without means of support. The chairman of the Committee on Appropriations is, consequently, a very masterful authority in the House. He can force it to a consideration of the business of his Committee at almost any time; and by withholding his reports until the session is well advanced can crowd all other topics from the docket. For much time is spent over each of the "general appropriation bills." The spending of money is one of the two things that Congress invariably stops to talk about; the other being the raising of money. The talk is made always in Committee of the Whole, into which the House at once resolves itself whenever appropriations are to be considered. While members of this, which may be called the House's Committee of Supply, representatives have the freest opportunity of the session for activity, for usefulness, or for meddling, outside the sphere of their own committee work. It is true that the "five-minutes' rule" gives each speaker in Committee of the Whole scant time for the expression of his views, and that the House can refuse to accord full freedom of debate to its other self, the Committee of the Whole, by limiting the time which it is to devote to the discussion of matters referred to it, or by providing for its discharge from the further consideration of any bill committed to it, after it shall have acted without debate on all amendments pending or that may be offered; but as a rule every member has a chance to offer what suggestions he pleases upon questions of appropriation, and many hours are spent in business-like debate and amendment of such bills, clause by clause and item by item. The House learns pretty thoroughly what is in each of its appropriation bills before it sends it to the Senate.

But, unfortunately, the dealings of the Senate with money bills generally render worthless the painstaking action of the House. The Senate has been established by precedent in the very freest possible privileges of amendment as regards these bills no less than as regards all others. The Constitution is silent as to the origination of bills appropriating money. It says simply that "all bills for raising revenue shall originate in the House of Representatives," and that in considering these "the Senate may propose or concur with amendments as on other bills" (Art. I., Sec. VII.); but, "by a practice as old as the Government itself, the constitutional prerogative of the House has been held to apply to all the general appropriation bills," and the Senate's right to amend these has been allowed the widest conceivable scope. The upper house may add to them what it pleases; may go altogether outside of their original provisions and tack to them entirely new features of legislation, altering not only the amounts but even the objects of expenditure, and making out of the materials sent them by the popular chamber measures of an almost totally new character. As passed by the House of Representatives, appropriation bills generally provide for an expenditure considerably less than that called for by the estimates; as returned from the Senate, they usually propose grants of many additional millions, having been brought by that less sensitive body up almost, if not quite, to the figures of the estimates.

After passing their ordeal of scrutiny and amendment in the Senate, the appropriation bills return with their new figures to the House. But when they return it is too late for the House to put them again into the crucible of Committee of the Whole. The session, it may be taken for granted, was well on towards its middle age before they were originally introduced by the House Committee on Appropriations; after they reached the Senate they were referred to its corresponding Committee; and the report of that Committee upon them was debated at the leisurely length characteristic of the weightier proceedings of the upper chamber; so that the last days of the session are fast approaching when they are sent down to the House with the work of the Senate's hand upon them. The House is naturally disinclined to consent to the radical alterations wrought by the Senate, but there is no time to quarrel with its colleague, unless it can make up its mind to sit through the heat of midsummer, or to throw out the bill and accept the discomforts of an extra session. If the session be the short one, which ends, by constitutional requirement, on the 4th of March, the alternative is the still more distasteful one of leaving the appropriations to be made by the next House.

The usual practice, therefore, is to adjust such differences by means of a conference between the two Houses. The House rejects the Senate's amendments without hearing them read; the Senate stoutly refuses to yield; a conference ensues, conducted by a committee of three members from each chamber; and a compromise is effected, by such a compounding of disagreeing propositions as gives neither party to the quarrel the victory, and commonly leaves the grants not a little below the amounts asked for by the departments. As a rule, the Conference Committee consists, on the part of the House, of the chairman of its Committee on Appropriations, some other well-posted member of that Committee, and a representative of the minority. Its reports are matters of highest prerogative. They may be brought in even while a member is speaking. It is much better to silence a speaker than to delay for a single moment, at this stage of the session, the pressing, imperious question of the supplies for the support of the government. The report is, therefore, acted upon immediately and in a mass, and is generally adopted without debate. So great is the haste that the report is passed upon before being printed, and without giving any one but the members of the Conference Committee time to understand what it really contains. There is no chance of remark or amendment. It receives at once sanction or rejection as a whole; and the chances are, of course, in favor of its being accepted, because to reject it would but force a new conference and bring fresh delays.

It is evident, therefore, that after all the careful and thorough-going debate and amendment of Committee of the Whole in the House, and all the grave deliberation of the Senate to which the general appropriations are subjected, they finally pass in a very chaotic state, full of provisions which neither the House nor the Senate likes, and utterly vague and unintelligible to every one save the members of the Conference Committee; so that it would seem almost as if the generous portions of time conscientiously given to their consideration in their earlier stages had been simply time thrown away.

The result of the under-appropriation to which Congress seems to have become addicted by long habit in dealing with the estimates, is, of course, the addition of another bill to the number of the regular annual grants. As regularly as the annual session opens there is a Deficiency Bill to be considered. Doubtless deficiencies frequently arise because of miscalculations or extravagance on the part of the departments; but the most serious deficiencies are those which result from the close-fistedness of the House Committee on Appropriations, and the compromise reductions which are wrung from the Senate by conference committees. Every December, consequently, along with the estimates for the next fiscal year, or at a later period of the session in special communications, come estimates of deficiencies in the appropriations for the current year, and the apparent economies of the grants of the preceding session have to be offset in the gifts of the inevitable Deficiency Bill. It is as if Congress had designedly established the plan of making semi-annual appropriations. At each session it grants part of the money to be spent after the first of July following, and such sums as are needed to supplement the expenditures previously authorized to be made after the first of July preceding. It doles out their allowances in installments to its wards, the departments.

It is usual for the Appropriations Committees of both Houses, when preparing the annual bills, to take the testimony of the directing officers of the departments as to the actual needs of the public service in regard to all the principal items of expenditure. Having no place upon the floor of the House, and being, in consequence, shut out from making complete public statements concerning the estimates, the heads of the several executive departments are forced to confine themselves to private communications with the House and Senate Committees. Appearing before those Committees in person, or addressing them more formally in writing, they explain and urge the appropriations asked in the "Letter" containing the estimates. Their written communications, though addressed only to the chairman of one of the Committees, frequently reach Congress itself, being read in open session by some member of the Committee in order to justify or interpret the items of appropriation proposed in a pending bill. Not infrequently the head of a department exerts himself to secure desired supplies by dint of negotiation with individual members of the Committee, and by repeated and insistent private appeals to their chairman.

Only a very small part of the relations between the Committees and the departments is a matter of rule. Each time that the estimates come under consideration the Committees must specially seek, or the departments newly volunteer, information and advice. It would seem, however, that it is now less usual for the Committees to ask than for the Secretaries to offer counsel and suggestion. In the early years of the government it was apparently not uncommon for the chairman of spending committees to seek out departmental officials in order to get necessary enlightenment concerning the mysteries of the estimates, though it was often easier to ask for than to get the information wanted. An amusing example of the difficulties which then beset a committee-man in search of such knowledge is to be found in the private correspondence of John Randolph of Roanoke. Until 1865 the House Committee of Ways and Means, which is one of the oldest of the Standing Committees, had charge of the appropriations; it was, therefore, Mr. Randolph's duty, as chairman of that Committee in 1807, to look into the estimates, and he thus recounts, in an interesting and exceedingly characteristic letter to his intimate friend and correspondent, Nicholson, this pitiful experience which he had had in performing that duty: "I called some time since at the navy office to ask an explanation of certain items of the estimate for this year. The Secretary called upon his chief clerk, who knew very little more of the business than his master. I propounded a question to the head of the department; he turned to the clerk like a boy who cannot say his lesson, and with imploring countenance beseeches aid; the clerk with much assurance gabbled out some commonplace jargon, which I could not take for sterling; an explanation was required, and both were dumb. This pantomime was repeated at every item, until, disgusted and ashamed for the degraded situation of the principal, I took leave without pursuing the subject, seeing that my object could not be attained. There was not one single question relating to the department that the Secretary could answer." It is to be hoped that the Secretaries of to-day are somewhat better versed in the affairs of their departments than was respectable Robert Smith, or, at any rate, that they have chief clerks who can furnish inquiring chairmen with something better than commonplace jargon which no shrewd man can take for sterling information; and it is altogether probable that such a scene as the one just described would nowadays be quite impossible. The book-keeping of later years has been very much stricter and more thorough than it was in the infancy of the departments; the estimates are much more thoroughly differentiated and itemized; and a minute division of labor in each department amongst a numerous clerical force makes it comparatively easy for the chief executive officers to acquaint themselves quickly and accurately with the details of administration. They do not wait, therefore, as a general thing, to be sought out and questioned by the Committees, but bestir themselves to get at the ears of the committee-men, and especially to secure, if possible, the influence of the chairmen in the interest of adequate appropriations.

These irregular and generally informal communications between the Appropriations Committees and the heads of the departments, taking the form sometimes of pleas privately addressed by the Secretaries to individual members of the Committees, and again of careful letters which find their way into the reports laid before Congress, stand in our system in the place of the annual financial statements which are in British practice made by the ministers to parliament, under circumstances which constitute very full and satisfactory public explanations and the freest replies to all pertinent questions invariable features of the supervision of the finances by the Commons. Our ministers make their statements to both Houses indirectly and piecemeal, through the medium of the Committees. They are mere witnesses, and are in no definite way responsible for the annual appropriations. Their secure four-year tenure of office is not at all affected by the treatment the estimates receive at the hands of Congress. To see our cabinet officers resign because appropriations had been refused for the full amount asked for in the Secretary of the Treasury's "Letter" would be as novel in our eyes as would be, in the view of our English cousins, the sight of a Ministry of the Crown remaining in office under similar circumstances. Indeed, were our cabinets to stake their positions upon the fortunes of the estimates submitted to Congress, we should probably suffer the tiresome inconvenience of yearly resignations; for even when the heads of the departments tax all their energies and bring into requisition all their arts of persuasion to secure ample grants from the Committees, the House Committee cuts down the sums as usual, the Senate Committee adds to them as before, and the Conference Committee strikes a deficient compromise balance according to time-honored custom.

There is in the House another appropriations committee besides the Committee on Appropriations. This is the Committee on Rivers and Harbors, created in December, 1883, by the Forty-eighth Congress, as a sharer in the too great prerogatives till then enjoyed by the Committee on Commerce. The Committee on Rivers and Harbors represents, of course, the lately-acquired permanency of the policy of internal improvements. Until 1870 that policy had had a very precarious existence. Strenuously denied all tolerance by the severely constitutional Presidents of the earlier days, it could not venture to declare itself openly in separate appropriations which offered an easy prey to the watchful veto, but skulked in the unobtrusive guise of items of the general grants, safe under the cover of respectable neighbor items. The veto has never been allowed to seek out single features in the acts submitted to the executive eye, and even such men as Madison and Monroe, stiff and peremptory as they were in the assertion of their conscientious opinions, and in the performance of what they conceived to be their constitutional duty, and much as they disapproved of stretching the Constitution to such uses as national aid to local and inland improvements, were fain to let an occasional gift of money for such purposes pass unforbidden rather than throw out the general appropriation bill to which it was tacked. Still, Congress did not make very frequent or very flagrant use of this trick, and schemes of internal improvement came altogether to a stand-still when faced by President Jackson's imperious disfavor. It was for many years the settled practice of Congress to grant the States upon the sea-board leave to lay duties at their ports for the improvement of the harbors, and itself to undertake the expense of no public works save those upon territory actually owned by the United States. But in later years the relaxation of presidential opposition and the admission of new States lying altogether away from the sea, and, therefore, quite unwilling to pay the tariffs which were building up the harbors of their eastern neighbors without any recompensing advantage to themselves who had no harbors, revived the plans which the vetoes of former times had rebuffed, and appropriations from the national coffers began freely to be made for the opening of the great water highways and the perfecting of the sea-gates of commerce. The inland States were silenced, because satisfied by a share in the benefits of national aid, which, being no longer indirect, was not confined to the sanctioning of state tariffs which none but the sea-board commonwealths could benefit by, but which consumers everywhere had to pay.