The Washington times., 1920-08-07
Traffic on Waterways
Should Be Increased
ToAidCropMouement


proximately s cents a bushel. which
means that American grain would net
Just that much more.
For more than forty years before
Woodrow Wilson was elected Presi-
dent In 1912, a reform OF our banking
and currency system had been al
most universally demanded and had
been year after year deferred or re-
fused by the stand-pat element OF the
Republican party in obedience TO
orders. The control OF money and in
terest rates had long been held by
favored groups who were thus able TO
dominate markets, regulate prices,
favor friends. destroy rivals. precipi-
tate and end panics, and In short,
through their financial, social, and
political outposts, be the real rulers
OF America. The Federal reserve act
was originated, advocated, and made
q law by a Democratic President and
Congress. against the bitter protests
OF the Republican stand patters, who
almost without exception voted
against It, Among these men are
the familiar names OF Senators Lodge,
Penrose, and Smoot. the inside Senate
cabal responsible for the existing
status in the leadership OF their party.
The Federal reserve act IA admitted
to be the most constructive none
tary legislation in history. At
stroke IL transferred the power over
money and credit and all they repre-
sent from one financial district out
into the keeping OF the people them.
selves. and instead OF one center to
which all paid tribute, there are
twelve citadels OF financial freedom
where ever$ citizen has an equal
right and where the principle that the
credit OF American business shall be
free Is the basis. OF administration
Every citizen should be alert TO guard
this great institution which Is his
guarantee OF credit independence.
RESERVE BANKS AIDED IN WAR.
1t should be kept from the hands
OF those who have never been its
friends, and who by changes in a
few obscure phrases could translate
II into greater power for evil than
VI ever has been for good. 1t is al
most unnecessary to speak OF the
Federal Reserve system in connection
with the winning of the war. as,
next to the conservation OF our man
hood and womanhood itself, the
greatest factor was the marshalinS
into one unit through the Federal
Reserve banks OF the stupendous
wealth OF America. To those OF
vision who look out beyond our
shores into that commercial domain
where we are so justly entitled to
enter In a time OF peace. latent power
OF the Federal Reserve system can be
seen promoting in every quarter OF
the globe an overwhelming flow of
American commerce. We will soon
have a merchant marine feet Of H.
100000 tons aggregate. every ship
flying the American flag and carry
ing in American bottoms the prod
ucts OF mill and mine and factory
and farm. This would seem to be a
guarantee of continued prosperity.
Our facilities for exchange ard
credit. however. in foreign parts.
should be enlarged and under the
federal reserve system, banks should
be established in important trading
centers. l am impressed also, with
the Importance of improving. IL not
rcorganizing, our consular service.
The certain increase in foreign trade
would seem to demand 1t. This sug-
gests another change. Our ambas-
sadors to foreign countries have had
assigned to them a military and a
naval attache. The staff should b,
enlarged SO as TO include an officer
duty would be to make observation
and report development and improve
ment in educational and business
problems generally.
Government bureaus during the war
had close contact with the business
organization OF the country. That ex-
perience revealed the modern need of
reorganization along purely business
lines. The advantages of a democra-
cy in government need not be re-
counted. 1t has been held by ex-
perts that 1t involves the disadvan-
tages Of disbursements, authorized
by the law-making power. without
sufficient knowledge OF. the need of
the service, or the possibilities OF ex-
travagance. The answer to this Is
the budget system. No successful
business neterprise OF any size can
operate without it. For a hundred
years, the Federal unit, and the
states as well. made appropriations
without determining the difference
between department need and ca
price, at the same time. paying little
attention to the relation as between
income and expense. Many of the
States have adopted a budget sys-
tenn. and with a success that carries
no exception. Efficiency has been
improved-departmen responsible
ty has been centered, and economies
have been effected. The same can
be done by the Federal Government.
ENCOURAGES MORE EFFORT.
The system will reveal at once, as
1t did in the States, a vast surplusage
OF employees. 1t awakes individual
interest, encourages greater effort,
and gives opportunity for talent to
assert itself The normal course of
least resistance. develops in govern
ment bureaus hardpan, which re-
tards progress. When the reor-
ganization is made, pay should be
commensurate with service. Many
Federal departments whose ramifca-'
tions touch the country generally,
have lost valuable men to business.
This has badly crippled postoQices,
the railway mail service and other
branches.
I am convinced after considerable
study of the subject that the expense
OF the government can, without loss
OF efficiency, be reduced to a maxi
mum of four billion dollars, including
LII