These comparisons of receipts are necessarily only approximate. In reducing the collection for the years 1889 to 1898 to American money 10 per cent has been deducted as the average difference in value between American and Spanish money of all classes. In order to arrive at the most accurate method of comparison, it is necessary to take into consideration many special taxes and other causes of difference in favor of the Spanish collections, such as the special tax for taking up paper money from circulation in the year 1898, and of the fact that in the year 1897 and some previous years some of the duties were collected in money of inferior value, as, for example, duties on alcoholic liquors, which were collected in paper money at its nominal value, and appeared at such nominal value in the statement of collections, and also of the fact that in the year 1898, the last year of the war, large quantities of war supplies and materials were introduced under the title of "libramientos." A check for the amount of the duties was presented to the cashier, figured in the collections as money, went to the treasury as such, and was then lost sight of. The effect, and, so far as I can now learn, the purpose of this transaction was to increase the apparent collections. As an example of the reduction which it is necessary to make in some cases for accurate comparison, alcoholic liquors, duties upon which were collected in paper money, always rendered more than 100,000 pesos per month, which reduced to American gold would amount to only $54,000. In addition to the foregoing deduction it is necessary to allow in favor of the present administration for the generally lower rates of duty now in force, the present ones averaging some 62 per cent lower than the former Spanish rates. (See Mr. Porter's Report on the Commercial and Industrial Condition of Cuba, page 17.) REPORT OF MAJ. E, F. LADD, QUARTERMASTER, U. S. v., TREASURER ISLAND OF CUBA. OFFICE TREASURER OF THE ISLAND OF CUBA, ADJUTANT-GENERAL DIVISION of Cuba, Habana, Cuba. Habana, Cuba, June 30, 1899. SIR: I have the honor to submit the following report covering the operations of the office of the treasurer and disbursing officer of customs, from February 2, 1899, to June 30, 1899, and the office of the auditor for the island of Cuba, from March 14, 1899, to June 30, 1899. In obedience to General Orders, No. 9, headquarters Division of Cuba, Habana, January 27, 1899, on February 2, 1899, I reported to Lieut. Col. Tasker H. Bliss for duty as treasurer and disbursing officer of customs. My instructions were (1) To receive from the collector of customs the funds collected at the port of Habana, and to disburse the same in obedience to instructions from the division commander. (2) To keep for reference an account with the collector of customs at each port, showing his collections, expenditures, and transfers, so as to be able to report his unallotted balance at any time. (3) To keep a record showing the allotments made from the customs funds. At the time of the military occupation last January, there being almost a total lack of transportation facilities for money, the only practicable plan seemed to be to let the funds collected at the several ports remain in the custody of the collector, to be by him transferred to disbursing officers as directed by the division commander. This plan has worked to the entire satisfaction of all parties, but has rendered impossible that accurate record of receipts and expenditures obtainable when without exception the total collections were converted into the treasury. Under the system as conducted the collectors were disbursing funds under the order of the chief of customs and transferring money under the order of the division commander. Many of the collectors failed to render accurate reports of their expenditures, it being seldom that their daily reports of collections and disbursements corresponded with their consolidated report at the end of the month, and the resulting confusion in my office can be imagined. This is stated simply to show the fault of the system, making the treasurer's records dependent upon a score of transactions by each person instead of upon only one, thus multiplying the liability of error by twenty. But during its operation it seemed to be the only feasible plan. Under instructions (1) the cash receipts of this office from February 2 to June 30 were Total disbursements for the same period were Leaving a balance on hand July 1 of..... $4,995, 010. 38 3,983, 409.88 1, 011, 600.50 The disbursements were divided as follows: For payment of accounts approved and ordered paid by the division commander Transfers to disbursing officers by same authority Total 367, 738. 14 3, 615, 671.74 3,983, 409.88 Of the balance remaining on hand, $311,600.50 will be held to meet any outstanding indebtedness pertaining to the fiscal year 1899, and when not longer required will be deposited to the credit of the treasurer of the island of Cuba. The remainder, $700,000, will be deposited to the credit of the treasurer of the island of Cuba on July 1, 1899. Under instructions (2) the result has been satisfactory and at all times sufficiently accurate to meet the requirements, but until recently not sufficiently accurate for statistical purposes. The total collections of each port from January 1 to June 30 were as follows: Transfers to disbursing officers Disbursements were as follows: Expenses of the several custom-houses. Disbursed by treasurer of customs to pay expenses of customs service, repairs of custom-house, expense of offices of treasurer and auditor of customs, and auditor of the island of Cuba, etc...... Cash balance in the hands of the treasurer and collectors of customs. Total..... 6,982, 010. 20 (3) Until April 15 no appropriations were designated under which customs funds were allotted for disbursement. Allotments were based upon estimates submitted, designating the particular work to be done, but without grouping under any general heads such as barracks and quarters, sanitation, etc.; and with the inexperienced disbursing officers found among the volunteer troops, and the lack of time necessary to formulate any other system, the simple one at first in force was the only one to attempt. But on April 15, by General Orders, No. 24, headquarters Division of Cuba, ten general appropriations were created under which funds were thereafter to be allotted and disbursed. This order continues in force and proves satisfactory, being of material aid in the auditing of accounts. As I have previously stated, until the adoption of these general divisions funds were allotted upon estimates setting forth the particular work to be done. To make the records complete, it was thought best to examine all these early estimates and classify all previous allotments as accurately as possible under the appropriations adopted April 15. This was done by this office, and the records show that from January 1 to June 30 the allotments of customs funds to military departments were as shown in Exhibit A. Exhibit B shows the allotments made during the same period to meet the deficiencies in the several branches of the civil government. Exhibit C shows the allotments by military departments as organized June 30, 1899. On July 1, when the treasury system organized under Executive order of May 8 went into effect, the total available balance of customs funds was as follows: Available cash on hand by treasurer of customs Cash balance in the hands of collectors, not needed to meet liabilities for fiscal year ending June 30, 1899 Total...... $700,000.00 468, 421. 42 1, 168, 421. 42 There will also be a small balance in the hands of disbursing officers after all liabilities of the fiscal year 1899 have been paid, but the exact amount can not be determined at present. The total expenses of the office of the treasurer and disbursing officer of customs from February 2 to June 30 were $4,746.35, divided as follows: Salaries..... Stationery and printing. Office supplies, furniture, etc.. Total..... Less than one-tenth of 1 per cent for the funds handled. $3, 770.97 324.94 650.44 4, 746. 35 The office of the auditor of the island of Cuba was created by the order from headquarters Division of Cuba of March 14, 1899. About the time of military occupation an auditor for the customs service was appointed and sent here from Washington. His duties were defined to be "to audit the accounts of all officers in the customs service," limiting his action to the accounts of the several collectors and that of the treasurer of customs. As the expenditures of collector were confined to defraying the expense of their offices, it left no provision for the audit of practically the total expenditures from the customs receipts. By order from headquarters Division of Cuba, of March 18, 1899, I was detailed as "auditor of the island of Cuba," charged with the audit of all accounts arising from the disbursement of the customs receipts in the island of Cuba, excepting those then audited by the auditor of the customs service. This embraced the disbursements of all funds allotted for expenditure, whether to be disbursed by officers of the military service or of the civil departments. Up to this time no rules or regulations had been promulgated as to the method of disbursement or the form of accounts to be kept and rendered; no record books or blank forms had been adopted. Each disbursing officer had been left to follow his own method. With poverty and distress on every hand and sanitary work of vital importance requiring immediate attention, money must be spent without the delay necessary to formulate rules or inaugurate a uniform system of accounts. Under the instructions of March 14, 1899, this office drew up a complete set of blank forms, which were distributed to all disbursing officers with instructions as to their use. So far as is known the system of accounts thus instituted has worked to the entire satisfaction of all, and has continued in force until the present time. Exhibit D contains sample copies of these blank forms and instructions. Up to June 30 this office had received 397 accounts, supported by 12,337 vouchers. Many of these accounts at first submitted were little more than memorandums. Some disbursing officers of the volunteer service returned home without rendering accounts at all, and it would be difficult to imagine a more laborious task than that of getting these accounts in proper shape so as not to bring discredit upon our military government. Having been a disbursing officer of the United States Army for several years, I had some knowledge of accounts and some experience with the Auditor of the War Department, but no knowledge whatever of the workings of an auditor's office, the books and records to be kept, or the most concise methods. All these things had to be worked out, no experienced assistance being obtainable. Knowing the difficulties under which most, if not all, disbursing officers labored, my object has been more to assist them in getting together and presenting in the best form possible the record and evidence of their disbursements than to hold them to account on mere technicalities; at the same time great care has been taken to verify every figure and report to them for future guidance the least irregularity. With one exception all the accounts for January, February, March, and April have been audited, but many of the accounts are not yet closed. Some of the officers are in Alaska, some in Manila, and others scattered throughout the United States. taking into consideration the many difficulties encountered and the inexperience of many of the disbursing officers, I feel justified in commenting favorably upon the showing they are able to make. The accounts received for April and May are almost, without exception, creditably rendered. But Under instructions from the division commander this office will complete the audit of the accounts pertaining to the allotments of the fiscal year 1899, and all balances, excepting those pertaining to "No limit appropriation," will be covered into the treasury. The latter balances will be certified to the new auditor. The total expenses of the office of the auditor for the island of Cuba from March 15 to June 30 were $2,469.04, divided as follows: Salaries.... Stationery and printing. Office supplies, furniture, etc.. $1,057.49 1, 150. 40 261.15 |