Evening star., 1914-10-25
Must Raise Cash to Carry on
Business of Federal Re-
serve System.
ESTIMATE OF 100000
FOR FIRST SIX MONTHS
Exact Status of Body Remains to Be
Determined by Decisions as
to Disbursements.

for six months expeditures for salaries
supplies and miscellaneous and sundr.
items, with about 100000 added as
the cost of engraving plates and dies
and printing reserve bank notes &c
the value of s200,o00.000-a total OF
from $275,000 to $500, ,000-will approx
mately represent the first semi-annual
levy to be made by the federal re-
serve board for money to carry II
through the hrst half year of exist
ence.
The levy will not be long delayed;
q committee CT members OF the fed
eraI reserve G6ai-d is now diligently
engaged in llahing an estimate of the
serlI-annual nesdS for the purposes of
declaring the levy on the federal re-
serve banks. Announcement of the
levy may be looked for. at any time:
payment will not be made until the
federal reserve banks have in the pay
ments of member banks on account of
their subscriptions o. federal reserve
bank stock, already called for to be
paid by Novem ber =.
It Must Eave Money.
The federal reserve board must have
money. 1t has reached the point in it's
no longer remain a pensioner on the
reserve bank or gauizatio1 committee
for clerical service and stationery and
OTHER supplies pa:, for from funds al
Iotteti by Con .c:csS for organizing the
new currency system.
t>1w ti4ft the ! deal reserve board is
about 10 taiss over control and direc-
ton of the federal reserve system with
the prospective opening of the federal
reserve banks on November 16 or on
November 81, t must have its own
clerical staff. rs own funds to draw
upon for salaries and supplies and
miscellaneous and sundry expenses
Tie United states government pro-
vides no funds for the activities of
the new currency system. 1t provides
building and allows the use of the
mails free Of cost. 1t is provided in
the law that the federal reserve board
shall estimate its expenses and make a
seml-annual levy upon the federal re-
serve banks. they in turn to pro-
rata the tax among the member banks,
including funds for the operations of
the federal reserve banks The fed
era1 reserve board is also required to
reimburse the government for expendi-
lures for engraving plates and dies
and printing money issuable under the
new currency law and include the item
in estimates of semi-annual expendl-
lures.
Exactly how much the federal re-
serve board will need first crack out
of the strong boxes of the banks, how
much it will demand in its first semi
annual levy, is a matter of conjecture.
Annual expenditures in sight. as far as
can be foreseen, will range somewhere
between $156.0o0 and 100000, without
considering the printing bill OF the
bureau of engraving and printing.
Basing estimates on past performances
It is probable that the printing of the
$500. 600. 900 of federal reserve notes
ordered by the controller OF the cur
rency will mean an expenditure of
something more than 100000.
Board Members Salaries.
The Secretary of the Treasury. as a
member of the federal reserve board,
is a negligible quantity on the pay roll.
as the United States pays him all he
gets in the way of financial recompense
for public service. The controller OF
the currency, also a member OF the
federal reserve board draws down
$1,000 of his whole salary from the led
eraI reserve board pay roll, Wnlle the
government pays the rest, putting MIN
on equal financial footing with his as.
sociates. The other five members or
the reserve board each are TO ne paio'
under the law. a salary of S12,0O0 a
year For the members of the federai
reserve board alone the pay roll items
aggregate $4,000.
There are three i0CtdlS le
to the federal reserve board, whose
salaries will aggregate something IN
the neighborhocd of $4,000. Then
there are two or three experts. sun 20
b. employed, whose services VIII COM
mand /. good price. and whose pay ac-
count will add the pay roll perhaps
S15.019, perhaps $4,000.
Each Of toe Iive members of the fed
eral reserve board other than the sec
retary of the Treasury and the con-
nf he as
personal staff private secretary and
ut least one stenographer and one mes
senser. Here are items OF pay tnat
will aggregate probably more than
1t is proposed to organize a clerical
staff with about twenty-five clerks TO
begin with. With additional mes
sengers, it is probable that this will
add about $25, 900 to the pay roll. .....
Allowance for Increase.
These Items of pay, taking the maxi
mum figures, will foot up an annual
pay roll of exactly S150,0O0. If al
lowance is to be made for any great
increase in force during the first six
months of operation. the annual pay
roll will be proportionately increased
It Is not to be overlook however
that the members of the Aederal re-
serve board have salaries accruing te
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 to them
and that not a single clerk is accredtt-
ed to the federal reserve board at thi:
time. or is in any sense a charge
against the prospective levy.
To this $150,0O0 annual pay roll mus
be added an estimate for other ex
penses. These are difficult to analyZ'
in advance. Besides supplies and mis-
cellaneous and sundry expenses o
maintenance, there will undoubtedi!
be large travel account" Not onl.
will the members of the federal re
serve board be required to make man!
trips in many directions, but thi
necessity will involve the comings ant
goings of its expert employees and there
will be individuals called into confer
ence whose expenses will be a prope
charge against the funds of the fed
eral reserve board. Another $4,000
or perhaps double that sum, may no
be an eXtravagant estimate of thes
general expenses. So that seminar
nual levy TO meet such a budget wOult
not be much under 100000; and will
about $500 900 to pay the money-print
ing bill, would make a total approx
mately 100000 for the first half-yea
of operation.
Status of the Board.
The status of the federal reserv
board. as government fl oction, as
quasi governmental function or as al