Evening star. [volume] (Washington, D.C.) 1854-1972, 1918-03-10
WHAT THE GOVERNMENT IS DOING

ton of hostilities, and has measured
up to every expectation and to every
requirement, according to officials OF
the Treasury Department. Wttnout
this system it is contended that 1t
would be impossible to finance our
enormous domestic and foreign trade
to raise the tremendous credits re-
quired to assist the foreign govern
ments making common cause with US
against Germany, and to take care OF
the extraordinary expenditures en-
tailed by our part in the war.
The federal reserve system curing
the past year has grown enormously;
while widening materially the general
scope of its activities and usefulness
When the system was inaugurated IN
November. 1914. the total assets OF the
twelve federal reserve banks amount
ed to $943.419,000. The gold held by
the federal reserve banks and the fed
eral reserve agents, which year ago
amounted to $674, 100000, in last No
vember had reached the enormous sum
of s1,5s4, 32S,000.
During the past year the federal re-
serve banks. through the Federal Re-
serve Bank of New York, arranged for
the establishment of reciprocal ac-
in England with the Bank of England,
in France with the Bank of France
and in Italy with the Bank of Italy
though it is not expected that trans
and the banks Of belligerent countries
will assume large proportions before
the conclusion of the war. Arrange
ments have also been made for the
opening of reciprocal accounts with
the Philippine National Bank Of Ma
Mia through the federal reserve banks
of San Francisco and New York.
The facilities and advantages Of the
system have been enlarged and in
creased during the year by the open
ing of branch banks at important CEN
ters in different federal reserve dis
tricts.
sumed new and extremely important
duties since the outbreak of the war
in connection with government finances.
The first temporary government loan
was placed through the federal reserve
banks by selling to the twelve reserve
banks $4,000 900 of Treasury ninety
day certificates of Indebtedness, which
were taken by the several banks at
per cent interest rate. These GER
tificates were issued before the war
in anticipation of internal revenue
taxes payable in June. Since the out
break of the war the Treasury Depart
ment has placed. through the twelve
reserve banks. which have, in turn.
distributed them largely among their
member banks and other customers.
short-term Treasury certificates of in
debtedneSs to the extent of more than
S., 900, 100000. at rates varying from 3
to per cent.
These certificates of Indebtedness
are being issued from time to time.
usually with maturitieS of sixty to
ninety days, to provide temporarily for
ceipt of income and other taxes and
the proceeds of the sales of liberty
bonds, and are redeemed as these
funds are paid in Uncle Sans Treasury.
X
Ypfa &c hoir Cd N
by experts of the Interstate Com
merce Commission in
Ioconotiua locomotive inspection
Figures compiled by
Auspect1oh. those engaged in this
work show that last year there was a
total of SIS accidents. with 81 killed
and 721 injured. caused by failure of
locomotives or tenders.
The experts say that much of the in
crease in the number of defective loco
motives and the accidents and casual
ties has been brought about by unprec-
together with the shortage of labor
and material, have made difficult the
proper maintenance of locomotives.
This. however, the experts say, IS not
a justifica ton for the opera ton by any
carrier of locomotives that are in an
improper condition for service. and the
fact that some carriers by diligent eff
fort and careful supervision of repairs
have not only maintained the condi-
ton of locomotives. but have improved
it during the past year. thereby in
creasing operating efficiency. is evil
dence. it is believed. that locomotives
can be properly maintained even under
the present exacting operating condi-
tions
It is reported that in the ma jority of
cases the time consumed in repairing
the defects for which the locomotives
were held was only a fraction of the
regular lay-over period of the locomo
tive: in fact. in most cases after the
order was served the repairs required
were made without material delay to
traffic, which shows that the exercise
of proper diligence by the carriers will
materially reduce the number of loco
motives operated in violation of the
law.
Experts say that the rules and in
structions for the inspection of loco
motives and tenders. which We're ap-
proved by the commission as provided
by the law, have now been in effect
long enough to demonstrate fully their
ment and discretion exercised by the
shown by the fact that no formal ap-
has been filed by the railroads during
the past year
The Clayton act contains certain