The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1914-10-26

at least one stenographer and one mes
senger. Here arc items of pay that
will aggregate probably more than
$4,000
II Is proposed TO organize a clerical
stan with about twenty-five clerks TO
begin with. With additional messen-
gers, IT is probable that this will add
about $4,000 to the pay roll
These Items OF pay. taking the maxi
mum figures, will foot up an annual
pay roll of exactly s150.00O. II allow
ance Is to be made for any great In
crease in force during the first six
months OF operation. the annual pay
roll VIII be proportionately increased.
II is not 10 be overlooked, however
that the members of the Federal Re-
serve Board have salaries accruing to
them since the day they were sworn
In. August 10: that the subordinate Of
hcials have had their salaries fixed
have held Office for some short time
and have something coming 10 them;
and that not a single clerk is accredit-
eel to the Federal Reserve Board at this
time. or is in any sense a charge
against the prospective levy.
To this $4,000 annual pay roll must
be added an estimate for other ex-
penscs. These are difficult TO analyze
In advance. Besides supplies and mis-
>-Si'AHSoNs SuHuTy expenses OF
maintenance, there will undoubtedly
be large travel account" Not only
VIII the members of tho Federal Re-
serve Board be required to make many
trips in many directions, but this
necessity will Involve the comings and
goings or expert employees and there
VIII be individuals called into confer
ence. whose expenses will be proper
charge against the funds OF the Fed
cral Reserve Board. Another $4,000
or perhaps double that sum, NAV not
he an extravaganza estimate of these
general expenses. So that Il seml-an-
nual levy to meet such budget would
not be much under 100000: and with
about 100000 to pay the morey-print-
Ing BILL would make a total approx
mately 100000 for the first half-year
Of operation.
STATUS OF THE BOARD
NOT YET DETERMINED
The status OF the Federal Reserve
Board as government function, as n
uasi-govcrnmental function, or rs an
entirely Independent organization un-
der government regulation and direc-
ton. has at odd times been debated by
many authorities. There has been not
much argument to support any view
that the Federal Reserve Board was an
Independent organization, entirely free
OF governmental character. But there
has been considerable doubt of the OK
t!sitt VI IT'S eAuCl 10 the gov
ernment.
The fact that the entire expenses of
the Federal reserve system were under
the law chnrgeable against member
banks. and the funds dispensed without
interference by the Federal Reserve
Board. gave color TO argument that the
Federal Reserve Board was more re-
sponsible to financial interests than to
the government. But the fact that its
members are appointed by the Presi-
dent: that the law distinctly provides
that its clerks could be covered into
civil service, and, the contrary, that
they might be exempted from civil SER
vice requirements, gave strong support
to the theory that the Federal Reserve
Board is purely 4 governmental func-
ton.
This was the view taken Of it's status
by the Postmaster-Gen when he
decided, as within his authority to do.
that the Federal Reserve Board could
use the mails free under departmental
frank. as dc other branches of the gov
eminent The question will again be
agitated when the question of auditing
Board comes up. as come up 1T must,
for determination.
If the Federal Reserve Board must
audit Its own accounts as a quasi
independent body, a great expense will
be loaded upon 1t to provide an audit
machinery is applicable to the job. then
there are many laws regarding public
accounts which, IL applied to the ac-
counts of the Federal Reserve Board,
might hamper it's operations.
1t is probable that the final decision
will rule the accounts of the Federal
Reserve Board as properly auditable by
the government IT is likely, too, that
the decision will also find that not the
auditor for the Treasury Department,
but the auditor for the State and other
departments Will have the jurisdiction.
1t is likely that the decision will be
that none or few Of the laws governing
the disbursement of public accounts
will apply TO the accounts of the Fed
eral Reserve Board. as these laws are
practically all directed at eXpendi-
lures of moneys appropriated by Con-
greSs from the United States. and would
not apply to money provided by the
banks on levy for expenses entirely
at the discretion of the Federal Reserve
Board without congressional interven-