The Birmingham age-herald., 1918-12-17
LA STEP IN THE RIGHT DIRECTION

l A STEP IN THE RlGHI DlRECllON While the so-called Gray bilt has oc- casioned great deal of comment in ran, road and financial circles it is looked upon nevertheless as a crude measure, and yet as one which suggests that we are gradually and probably wisely ap- preaching a satisfactory solution of the difficult railroad problem. Nevertheless certain experiences of the past are re- garded as not justfying the hope that government representation upon the board of directors would be of any special value.
 The appearance of government directors upon railroad boards purporting to repre- sent the interests of the government through land grants or the issue of bonds to the railroads, was regarded in the past by railroad managers as something of joke and even by some of those govern ment directors as furnishing an oppor- tunity for enjoying without cost pro longed excursions, some of them across the continent The late Isaac H. Bromley, who was at one time government dl-
 rector upon the Union Pacific board used
 always to speak as though his assocla-
 tion with that board was in the na-
 ture of recreation, an opportunity to
 have a good time. So also the late
 Prentice H. Bailey. who was an intimate
 friend of Grover Cleevland and who was
 appointed director representing the gov
 ernment upon one of the railroad boards
 was accustomed to speak with slyIand
 yet pleasant smile of his offtcial reia- tons as government director. However under MT. Gray's plan or any other when may be adopted whereby the government
 would have representation on the poaio of directors there will be likely to be
 a realization of the responsibilities and
 importance of such an association II
 is felt here that out of the presentation
 of many views affecting the railroad slt- uation after peace is established tnero may be gradually evolved plan, per- fected by federal legislation, which Will prove satisfactory to the government, the railroads and the people.
 WHAT BANKS CAN DO AND WHY If it were necessary and If the pro- ceeding were legal then the resources Of all the banks of the United States. as these were to be found at the end of the last fiscal year. could be employed to
 meet all the obligations incurred by the | United States from the day when we i entered as one of the belligrents in the war. Washington authorities report that l on June 30 of this year the resources Of all these banks amounted to $40 210,0O0.- GOO Whoever compares these resources
 with those which were reported on June i 30 1914 will get some idea of the rapid
 growth of the country. Curiously enough
 the resources of the state-chartered in
 sttutions exceeded those of the national
 banks by about $5,000. 100000 and in this difference is to be discovered one of the reasons why the governors of the federal reserve system are anxious that more and more state chartered institutions align
 themselves with the federal reserve sys-
 tenn The national banks of the United States togethr with the state chartered institutions now report aggregate depos- ! it's of s32, ,5S9 600, ,000 It Is the contempla-
 ton of figures of this kind that the gov
 ernment authorities find reasons for con
 fidence that even though individuals
 should not subscribe to as great an ex-
 tent ,on the fifth Liberty Loan as they
 did for the fourth. nevertheless the banks will have resources enough fully
 to meet any deficiency between popular
 subscription and the total amount of the
 fifth Liberty Loan.