Evening journal., 1920-03-13
Is PALMER BOOM cAMouFLAGE FOR meADoog

~ HERE is widespread feeling among politicians in
Washington that ihe candidacy OF Attorney General
Palmer the Democratic nomination for the presidency
is more less Than camounage for the candidacy
OF William Gibbs McAdoo.
The theory seems 10 be that Mr. AcAdoo did not deem
t wise at this time formally 10 announce his candidacy
that he found nconyenen TO do so for some reason
unknown.
The facts as generally known are that Mr. MoAdoo
came 90 Washington Unexpectedly had quite extended
conference with President Wilson, that message was
sent the Department OF Justice and that Immediately
Mr. Palmer announced his candidacy in Georsia where
primaries were about 10 be held.
II not dlncu % understand why Mr. McAdoo would
deem t inexpedient to his candidacy early in
the same Tie has much 10 account for in his admnisra
ton as Secretary OF the Treasury and Director Of The
Railroad Administration II he becomes active candi-
date me will be the center OF very fierce re Of criticism
and viii be on the defensive Naturally he win wish to
avoid this and II Mr. Palmer be for time, at least,
ihe active avowed candidate, Mr.. McAdoo can avoid
ne discussion and determine later whether to be a
candidate.
one thing Mr. McAdoo viii have to answer for is the
organization and management Of the Federal Reserve
system. It is quite generally agreed that the reserve
system been managed to bring about an undue
imitation OF the currency.
The board checking imitation and bring
ing about a condition Of denation.
This is a necessary consequence OF the policy Of in
naiion which pursued under Mr. McAdoo.
How the denation process works ont viii determine
largely to what extent Mr. McAdoos policies viii be
demned
Many holders Of Liberty Bonds who have seen their
securities deprecate in value, inclined TO hold Mr.,
AcAdoo responsible for their losses since they relied
largely upon his assurances that the investment was
sood and safe one when they purchased the bonds.
The feeling Of these bond holders viii have large
bearing on the influence Mr. McAdoo may be able to
ed in the convention and later at the polls in November
But it is largely in his management Of the railroads that
air McAdoo viii in for criticism.
Under his management the cost OF operation was
that private management had been expensive waseful
and inefficient
II t had been true mat private management
Nasefu and inefficient, It would that by eimna-
ing this wastefuness and inenlciency the government
director Of railroads should make savings that would
counterbaance the increased cost Of operation during the
war
Moreover, while the railroads were in government
control there not the normal expenditure for rails
for equipment and for upkeep
This neglected upbeep win necessilaie increased ex
pendtures under private management with consequent
Increased rates which shippers must pay
Mr. McAdoo and his friends viii argue that these in
creased rates due TO return to private management
but an analysis Of the figures viii show that the increases
would have been necessary under government man
agement, for the roads were being at a loss.
These and other subjects which will be discussed TO
the derment OF Mr. McAdoo indicate the reason why he
reluctant to become prominent early In the political
campasn.