Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-08-07
S2,OOO,OO0,OOO ANNUAL
SAVING SEEN IF BUDGET
SYSTEM is ADOPTED
Nominee Convinced Yearly Expense Of Government,
Including Interest and Sinking Fund Provisions,
Can Re Reduced to $4,000,000000
ENFORCEMENT OF LAW PLEDGED; SPECIFIC
MENTION OF PROHIBITION ISSUE OMITTED

service by water The Great Lakes md
st. Lawrence navigation project, mar
ticularly, should claim the interest ~,
the government. About one third NJ
our states would be supplied with nv
outlet for every ton of their exports
The opportunity to, make of the lake
harbors great ocean ports of entry /,
inspiring to contemplate.
In, the crop moving period. tho cnll
on the railroads is staggering. Grain
piles up In the elevators. With stag.
nation more or less general, the farmer
sells his product under the most nm
favorable conditions. The trackape and
the. terminals in middle states particni
larly are clogged with this traffic, ana
interference with local movements ~
freight IS inevitable. The solution wouI
be simplitied by utilizing the WATERWAYS
Aside from this. the accruing gain from,
every crop would be consideration for
the reason that the price of grain IN
this. country is made by the Chicaso
market and 1t is determined by tSo
London quotations. The price in the
British metropolis is stated figure les,
the cost of transportation. The rout;ng
OF these commodities by water would
cents bushel. which means that Amsr'
lean grain would net just that much
more. ueu
Currency Reform
For more than forty years bofo.,~
Woodrow Wilson was elected Pres;dont
in 1912. reform of our banking anS
currency system had been almost NM
versally demanded and had been vnar
after. year deferred or refused bv tbs
stand pat element of the Rppublicsr
party in obedience to orders. The CON.
troll of money and interest rates bad
long been held by favored grouns wbo
were thus able to dominate markets
regulate prices. favor friends, dpstrov
rivals, precipitate and end panics and
in short. through their financial, social
and political outposts, be the real rulers
of America. '''''
The Federal Reserve act was or;,
mated, advocated and made n law hS,
democratic President and ConyrSssa a
against the bitter protests of the Rennh''
mean stand patters. who almost without
exception voted against it. Among these
men are the familiar names of Senators
Lodge, Penrose and Smoot. tho insido
senate cabal responsible for the existino
status in the leadership of their party
The Federal Reserve ac. is admitted
TO be the most constructive monotarr
legislation in history. At a stroke i
transferred the power over money and
credit and all they. represent from one
nnancial district out into the kpepino
OF the people themselves. and instead of
one center to which all paid tribute
mere are twelve citadels of financial
equal right and where the princinIe that
me credit Of American business shall
DC DC free us the basis of administrator
Every citizen should be alert to guard
ms great institution which is his guar.
ahtee OF credit independence, II s6ould
De Kept from the hands of those who
nave never been its friends. and who
oy changes in few obscure nhraspS
could translate it into a greater mower
Tor evil than it ever has been for good,
Federal Reserve System Commended
t IS almost unnecessary to sneak
or the Federal Reserve system in con.
nectlon with the winning of the war. as
next TO the conservation of our man.
nood ana womanhood itself the greatest
iactor was the marshaling into one unit
through the Federal Reserve banks of
the stupendous wealth of America, To
tnose of vision who look out beyond our
shores into that commercial domain
where we. are so justly entitled to enter
IN time of peace. latent power of the
Federal Reserve system can be seen pro.
noting in every quarter of the globe an
ever widening flow of American com.
merce.
We will soon have merchant marine
Meet OF ii 200, 900 tons aggregate, every
sship. hying the American flag and carry
ing in American bottoms the products Of
mil and mine and factory and farm.
ms would seem to be a guarantee Of
I rDnfInnn1 nrit f.. F..
exchange anhcredit. however, in foreign
narts, should be enlarged and. under the
federal Rcserve system. banks should
be established in important trading cen.
terS.
I am impressed also with the impor.
tance of improving, n not reorganizing,
our consular service. The certain in
crease in foreign trade would seem to
demand it. This suggests another
change. Our ambassadors to foreign
countries have had assigned to them q
military and naval attachc. The staff
should be enlarged so as to include an
othcer of the governpent whose exClu'
sive duty would be to make observation
and report development and improve.
ment in educational and social problems
generally.
Government bureaus during the war
mad 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 democracy
IN government need not be recounted.
1t has been held by experts that it in
+, wolves the disadvantage of disburse'
ments, authorized by the lawmaking
power without sufficient knowledge OF
the need of the service, or the possi'
bilities Of. extravaganza.
Budget System Demanded
The answer to this is Sthe budget
system. No successful business enter.
prise of any size can operate without
1t. For n hundred years the federal
unit, and the states as well, made ap'
preparations without determining ting
difference between departmental need
and caprice. at the same time paying
little attention to the relation as De-
tween income and expense.
Many of the states have adopted q
budget system, and with a success thaI
carries no exception. Efficiency mas
been roved-departmental responsl'
bllity has been centered, and economies
have been effected. The same can %
done by the federal government. Ine
system will reveal at once, as 1t do
IN the states, vast surplusage OF EN- :
ployes. 1t awakens individual interest
encourages greater effort and gives Op,'
portunity for talent to assert itsel'
The normal course of least resistanS,O
develops in government bureaus hafa.
pan which retards progress, When thS
reorganization is made, pay shoulu
be commensurate with service. NMahy
federal departments where ran hcatloh,,