Now I have all 11 pages. Let me compile the full transcription. Treasury Department, Comptroller's Office October 8. 1798. Sir: I have now the honor to acknowledge the receipt of your letter dated the 17 ultimo, accompanied by certain rules and regulations proposed to be established for the government of the Quarter Master General; of all the quarter Masters, and of the Public Agents in the expenditure of monies appropriated for the Military Establishment of the United States and in keeping and rendering their accompts and vouchers for the same. — In reviewing the several acts of the Legislature establishing the Department of War, and the offices subordinate and attached thereto, as well as the instructions and forms which have been prescribed for their government, there is one leading principle manifest, which by strictly regarding, the arrangements for the Military service will not only be facilitated but it will aid you in devising proper checks on the expenditure of money, and on the receipt, safekeeping, transfer and final disposition of the stores and public supplies. From this principle, result the different responsibilities and duties of the [underline: Accountant of the War Department; and of the Superintendent of Military stores.] It is the duty of the former to keep all accompts, for money advanced or paid on Warrants issued by the Secretary of War, and to examine and adjust the vouchers shewing its expenditures. The duty of the latter is to keep all accompts relative to the receipt, safekeeping, transfer and final disposition of Stores and supplies, as well as to examine and settle those of all persons who may have received the same; and all such persons ought to be considered and held responsible to him as an accounting officer. This division of duty and responsibility renders it essential, that the Accountant immediately after the settlement of an accompt for stores or supplies purchased, should furnish the superintendant with such documents and information, as to the kind, quantity & cost of them, the place of their deposit, and the name of the person accountable, as will enable the latter to make the proper and necessary entries in the books of his office. To ensure an efficacious, and systematic attention to this regulation, it should be made a standing rule in the Accountant's office never to admit a credit for supplies purchased, or to release the purchasing agent from further responsibility, by letter or otherwise, except as exemplified in the following cases . . . . . . . . . . . . . [undecipherable] Case 1. Beside producing satisfactory accompts and vouchers shewing the proper application of the money advanced, the Purveyor or other purchasing Agent should exhibit the acknowledgement of the superintendant, that all [underline: stores and supplies procured therewith] were deposited in the public store. Or [underline: Case 2.º] Beside producing satisfactory accompts and vouchers as before, the Purveyor or other purchasing agent, should exhibit the receipt of some person who shall have been duly authorized by the Secretary of War or the Superintendant of Military stores, to receive the stores and supplies procured; which receipt should also shew the [underline: place or places of deposit]. Or [underline: Case 3.ᵃ] Beside producing satisfactory accompts and vouchers as before, the Purveyor or other purchasing Agent should lodge an acknowledgment, that the stores and supplies purchased by him are [underline: in his possession] and that he is [underline: accountable for them], signifying also [underline: the place or places of their deposit] and the authority under which he retains such possession. Or [underline: Case 4.] Beside producing satisfactory accompts and vouchers as before, it should appear, that the stores and supplies procured, have been already [underline: ultimately applied to public use.] — Cases of this description will of course comprise the accompts of all Contractors for supplying recruiting rendevouses, where the stores and supplies are sufficient only for the daily [underline: subsistence and accomodation] of the troops at the post for which they are furnished. It is however foreseen, that instances will arise under the arrangements which the Military service may require, that even at those places, supplies will sometimes be furnished for [underline: future disposition]. In such cases therefore, accompts should be opened in the Superintendant's books upon information to be derived from the Accountant, and the accountable person ought not to be exonerated, until he shall have rendered proper accompts and vouchers, shewing the [underline: final issue or application] of the same, in like manner as where accompts of the stores or supplies purchased are opened in those books, in some one of the cases before specified. From this view of the duties and responsibility of the two officers, it will doubtless strike you as it does me, to be a matter of no small importance, that the divisional line between them should be clearly delineated, and that all regulations, which you may deem it necessary to establish for the government of the several Agents or persons employed in your Department, should be framed with a strict regard thereto; as well as to the manner of [underline: keeping the accompts] in the respective offices, pursuant to the forms prescribed by the Treasury. — As far as the rules and regulations proposed for consideration at present, have for their object an improvement in the forms of shewing the expenditures of your Department, I must be permitted respectfully to observe that in my opinion the general accompts now kept in the books of the Accountant and such subordinate accompts as may be found necessary in the progress of business, will answer every useful purpose and in practice they will prove as satisfactory perhaps as any system that can be devised. The general accompts authorized by the Treasury to be kept in the books of that office are the following — [undecipherable] 1. Pay of the Army. 2. Expenses of recruiting. 3. Subsistence of officers. 4. Forage of Officers. 5. Bounties to Soldiers. 6. Contingent expenses. 7. Warrants on the Treasurer. 8. Warrants in favor of the Treasurer. 9. The United States. 10. Pay of the Navy. 11. Subsistence of the officers of the Navy. 12. Pay of Naval Constructors, of Clerks of Ship yards &c. and incidental and contingent expenses. 13. Quarter Masters Department. 14. Hospital Department. 15. Cloathing Department. 16. Subsistence of the Army. 17. Fortifications of Harbors. 18. Indian Department. 19. Ordnance Department. 20. General accompt of Militia. 21. Militia called out to suppress an insurrection in the western Counties of Pennsylvania. In consequence of the general accompt numbered 16 having been opened, the one formerly kept numbered 3 was rendered unnecessary, and is therefore discontinued. Those numbered 10, 11 & 12 relating to the Naval Department, are also discontinued, because the expenditures which rendered them necessary, are now exhibited in the books of the Accountant of the Navy. It will appear from an inspection of these accompts that they are susceptible of being branched under suitable [underline: subordinate titles] into any extent of detail which experience and observation may recommend. Although this is obvious, it is equally so to my mind and further reflection will I trust produce the same conviction on yours, that too great a multiplication of the heads of expenditure, would have a tendency to produce effects the very reverse of those which you anticipate from the proposed regulations. This opinion which has been neither hastily, nor it is conceived, incorrectly formed, evinces the importance of opening even [underline: subordinate accompts] in your department with caution. With slight alterations in the titles of some of them, the [underline: general accompts] now kept in the books of the accountant may be modified without any inconvenience, so as to obviate all the arguments for an increase of their number. As for instance, it may be proper to close the accompt N.^o 17 "[underline: Fortifications of Harbors]" for the purpose of substituting one under the more general title [underline: Fortifications.] — Subordinate to this, accompts may be opened when necessary, for any Fortification in the United States upon which considerable sums are about to be expended. Subordinate to "[underline: Militia service]" accompts may also be opened [underline: for each expedition] or if thought expedient for the [underline: Militia of each State separately] when employed on the same service. In the "Ordnance Department" subordinate accompts may be kept under the titles "Springfield" "Shenandoah &c." shewing the amount expended for labor, materials, subsistence, pay &c. &c. at each Establishment; and among those subordinate to "Indian Department" it may perhaps be expedient to open a distinct accompt for [underline: each annuity] allowed by Treaty. A late letter from this office to the Accountant contained the following paragraph, which I beg leave to insert here as completely expressive of the opinions which have been entertained at the Treasury on this subject. "As by the act before referred to, all purcha- · ses and Contracts for services or supplies for the Military · service of the United States, are to be made by or under the · direction of the Secretary of War, he will doubtless judge it · expedient to direct particular accompts to be opened, for · the purpose of ascertaining the amount of various expen- · ses which may finally be involved in a more general ac- · compt; for instance — he may deem it expedient, to direct · the disbursements in the 'Quarter Masters Department,' · to be classified in such manner, and distributed under · so many [underline: particular heads of expenditure] as will at any · time afford an easy and satisfactory view of the expendi- · tures in that department, and so with any other. In · respect therefore to any details of this nature, not inconsist- · ent with the principles of the system of accounting already · prescribed and established, you will of course be governed by "by his instructions." These are my reflections upon the alterations which your regulations contemplate. After all that can be said however on the subject of such forms, it must be conceded that at best they will afford but an imperfect check upon the expenditure of public money. The security which consists in [underline: forms only] will always be illusory and inefficient. It is made the duty of the Treasury to prescribe them, principally I presume for the purpose of preserving [underline: uniformity in the system of accounting], and of exhibiting at stated periods a general view of the expenditures in each Department of the Government. The more difficult task of preventing the misapplication of money and stores belongs to the person entrusted with the power of directing their disposition. This I wish to be well understood and established as a principle between the two Departments; for it is evident upon the manner in which that power is exercised must essentially depend the success of any system. One important circumstance in relation to monies advanced on account from your Department remains yet to be noticed. What I have reference to is, that in every case excepting where extraordinary circumstances, or the nature of the service renders it impracticable, the party to whom money [underline: is advanced in the first instance] should be held responsible for it in the accountant's books [underline: until the final application thereof be ascertained] by accompts and vouchers rendered to his office. There are already a vast number of individual accompts open; if they continue to increase, if you should at the same time cause to be kept many [underline: subordinate accompts of expenditure], the accountant must of consequence be oppressed by additional duties of Clerkship, beside embarrassing and impeding in an inconvenient degree, the essential duties of [underline: examination] and [underline: adjustment]. The effect which an adherence to this rule will have in preventing the increase of individual accompts and consequently settlements, and in facilitating their transmission, is so obvious, that arguments need not be urged in support of it. A contrary course will produce perhaps two or three or more new accompts for one old one that may be closed; and pursuing this method for any length of time, it is easily foreseen to what an endless multiplication of individual accompts it would lead. In short to close the accompt of one Agent by transferring the amount to the debit of another, is a practice which ought to be carefully guarded against; and as the advances of money and their ultimate application are placed solely under your direction, I respectfully conceive that all your instructions ought to be framed with a due regard to the importance of this suggestion. Having made these remarks on the rules and regulations, which you have been pleased to submit to my consideration, and feeling the utmost desire that they should prove satisfactory, I beg leave to return them herewith. I have the honor to be Sir, with great respect, Your most Obed^t. Serv^t. (signed) John Steele Compt^r. [Hon the James Mc Henry Esquire Secretary of War.]