Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-08-07
Political Plotted the Works Peace


transportation by rail, and except for
the great pipe lines. which conveyed
oil for commercial purposes. we
should not, in all probability, have
been able to throw our deciding
strength into the balance and win the
war. Any attempt to discredit the
federal operation of railroads during
the years of grave emergency is un-
fair. In the case of those who know
the facts, it is insincere. Too much
cannot be said in praise of those who
directed this work, nor of the men
who physi cally operated the lines un-
der the discouraging conditions OF
poor equipment. But all of this is
water over the wheel. The problem
of the railroads is still with US. The
government and the public should
render every cooperation in the ut
to private ownership. The railroads
have had their lesson. Government
regulation is accepted now as not only
safeguard to the public, but as a
conserving process to the utility.
Financial credit is necessary to phys
ica1 rehabilitation. and it should be
sufhci ent for the periods of maximum
demand. We should not lose sight.
however, of the vast possibilities of
supplementary service by water. The
great lakes and ST. Lawrence naviga-
ton project, particularly, should
claim the interest of the government.
About one-t third of our states would
be supplied with an outlet for every
ton of their exports The opportunity
to make of the lake harbors great
ocean ports of entry 10 inspiring to
contemplate.
Currency Reform Crying
Need for Years.
In the crop-moving period the call
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 unfavorable conditions. The
trackage and the Terminals in mid
die states particularly. are clogged
with this traffic and interference with
local movements of freight is in
evitable. The solution would be sim
plif1ed by utilizing the WATERWAYS.
Aside from this, the accruing gain
from every crop would be a consider
alton for the reason that the price
OF grain in this country is made by
the Chicago market and it is deter
mined by the London quotations. The
price in the British metropolis is a
stated figure less the cost of trans
portation. The routing of these COM
modities by water would effect a saw
ing of approximately 8 cents a buShel,
which means that American grain
would net just that much more.
For more than forty years before
Woodrow Wilson was elected Pres
ident in 1912, reform Of our banking
and currency system had been almost
Universally demanded and had been
year after year deferred or refused
by the .standpat element of the re-
publican party in obedience to or
ders. The control of money and inter-
est rates had long been held by IA
vored groups. who were thus able to
dominate markets, regulate prices.
cipitate 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
law by democratic President and
Congress-. against the bitter protests
of the republican standpatters. 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 is ad-
mitted to be the most constructive
monetary legislation in history.
At a stroke it transferred the pow
er over money and credit and all they
represent, from one financial district
out into the keeEng of the people
themselves and instead of one center
to which all paid tribute there are
twelve citadels of financial freedom
where every 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. 1t
should be kept from the hands of
those who have never been it's friends,
and who by changes in few OBJ
scure phrases could translate it into
a greater power for evil than it ever
has been for good. 1t is almost I'M
necessary to speak of the federal re-
serve system in connection with the
winning of the war, as, next to the
conservation of our manhood and
was the marshaling into one unit
through the federal reserve banks of
the stupendous wealth of America.
To those of vision who look out be-
yond our shores into that commercial
domain where we are SO justly en-
latent power of the federal reserve
system can be seen promoting in every
quarter of the globe an ever-widen-
ing flow of American commerce. We
will soon have merchant marine
feet of 100000 tons aggregate,
every ship flying the American flag
and carrying in American bottoms the
products of mill and mine and factory
and farm This would seem to be
guarantee of continued prosperity.
Our facilities for exchange and credit,
however, in foreign parts should be
serve system banks should be estab-
Iished in important trading centers.
I am impressed also with the impor-
lance of improving, If not reorganlz-
ing. our consular service. The certain
increase in foreign trade would seem
to demand it. This suggests another
change. Our ambassadors to foreign
countries have had assigned to them
a military and a naval attache. The
staff should be enlarged so as to IN
clude an officer of the government
whose exclusive duty would De 10
opment and improvement in educa-
tional and social problems generally.
Budget System Needed
for L. 8. Business.
Government bureaus during the war
had close contact with the business
organization Of the country. That
Of reorganization along purely bust
ness lines. The advantages or a de-
mocracy in. government need not be
recounted. 1t has been held by ex-
perts that it involves the disad.
vantage of disbursements authorized
by the law-making power without
sufficient knowledge Of the need of
the service or the possibilities of ex-
The answer to this is
the budget system. No successful
business enterprise of any size can
operate without it. For a hundred
years the federal unit, and the states
as we'll made appropriations without
the difference between de-
need and canrice at the same