Evening star., 1914-08-14
FEDERAL BANK BOARD
STATUS IS DEBATABLE
Attorney Generals Opinion to Be In
voked to Determine It's Gov
ernmental Activity.

To what extent the federal reserve
board is to be regarded as a govern
mental activity with administrative
functions is a problem with many COM
plications The matter undoubtedly
will be referred to the Attorney Cen
eral for opinion
Under the law the federal reserve
board is financed entirely by the mem
Der banks of the federal reserve sys-
tenn the government not contributing
one cent although il provides quar-
ters. without rental, in the Treasury
/. Department building. The two en-
off1cio members the secretary of the
Treasury and the controller of the cur
rency, are government representatives.
and the five appointive members are
designated by the President These
five appointive members. however. are
not regarded as governmental repre-
sentatives, but as representative of the
commercial and financial interests of
the nation at large
1t has already been accepted that the
federal reserve board is in no sense
a part of the Treasury Department
This question came up In connection
with making out commissions Tor the
members of the board. Treasury De-
partment seals il was finally agreed.
were not fitting upon these commits
sions and the seal of the United states
was appended
The ruling has also been made that
the funds set aside by Congress Tor
the reserve bank organization are not
available for any expense OF the 1ed-
eral reserve board. The law states
that the expense of the board shaii
be met by annual levy upon the twelve
federal reserve banks. which. in turn
must look to the member banks for
the necessary funds.
Question of Governmental Activity.
Whether the federal reserve board is a
governmental activity to the extent of
having the power to use the mails with
out cost, on footing with the admin
istrative departments of the government,
is one of the complications of the gen.
eral problem pressing for decision. Tn
der the present emergency conditions,
with the board not Yet formally organ
lied. the stationery of the Treasury De-
partment, carrying authority to use the
mails for official business. will probably
be employed without serious objection.
But there is a question of r1sht IN
volved that is to be settled.
If the matter was presented in the
form of an item for expenditure for
postage stamps. and the status of the
board as governmental or quasl-gov-
ernmental activity were already settled.
che controller of the Treasury might
have the calculation of this question.
But as a legal right to use the mails.
without a question of expenditure be-
Ing raised. 1t will more likely be mat
ter for the Attorney General to decide
Already some of the members of the
federal reserve board have acquired the
services of employees of the Treasury
Department acting as their secretaries
and stenographers. The clerical work of
the board viii assume large proportions
as soon as il is formally organized.
There is now no clerical corps, although
il is undoubted that the corps attached
to the organiZatio COMMITTEES. trained to
the work. will be the nucleus of the
force of the federal reserve board.
Status Of Employees.
There is. of course. under the ruling
now no money to pay these clerks; but
this will be remedied without difficulty
and probably with little delay by legal
levy upon the reserve banks, as soon as
they are in position to meet such de-
mand But the status of these clerks
Is involved in the question of the status
of the federal reserve board. They may
or may not be considered as government
employees.
However, the law may indicate some
intention of Congress in this regard in
as far as it gave to the President the
power to include them under civil serv-
ice al his pleasure.