The Brookings register. [volume] (Brookings, Brookings County, S.D.) 1903-1971, 1923-01-18

serve DdIh Ol tue ulStTlCl III WHICH II
is situated, and State banks and trust
companies may also become members.
Each member-bank is required to sub
scribe to the stock Of the Federal Re-
centum of its paid up capital stock and
surplus. Thus the Federal Reserve
Bank is nothing more nor less than a
bank of banks. 1t is a depository of its
members and for Government funds
1t will be seen that the resources at
its command are practically unlimited.
The Federal district bank working in
connection with its members, and with
the whole financial support Of the Gov
eminent, is enabled to command such
essary, run a trainload Of money onto
a siding" whenever it is necessary to
save an impending financial crisis. OF
course the science of credits includes
due respect for conservative methods
always dear to bankers. Financial
science is opposed to being inflated
until its skin gets to the point where
it may pop like a toy balloon. Never
theless, the Federal banking schemes
worked out under the dignified desig-
period and nine years ago, are suscept-
ible of intelligent treatment that will
produce 'elasticity." The farm bloc"
and the farmers of the country want
the fullest degree of this elasticity,
consistent with safety.first methods
capable of being developed in the
realms of credit science.
General Dawes, out in Chicago, has
hurled a broadside at the Post Office
"bureaucrats" who have failed to pro-
duce a balance sheet showing the con
dition of their business year. AS Bud
get Director, the ChicagOan worked out
the balance sheet, but the men who
have been running the Post Office De-
partment punched it." In 1920-21 the
deficit Of the Post Office was 1857 600,
600. In 1922 it was $50, 100, 600. The
however, show where the actual losses
occur. And that is why Dawes is mad!
When he left Washington he supposed
that the balance sheet adopted under
the widely heralded budget system
would tell the actual story of results
in the Post Office Department. But
the "bureaucrats" slid back into their
old habits, and there is no way Of tell
ing why Uncle Sam runs SO far be-
hind in his big pOstOffice. Former
Postmaster General Hays vouchsafes
the opinion that sixty per cen of the
Departments losses are due to the par
eel post. Now that the Christmas or
gy has been survived, and with every
one fresh with memories of the bar
gains in delivery service at the post
offices, it is not hard to agree with
Mr.. Hays and other good business men
! who find nothing short Of inefficiency
in the business methods in the rates
charged on packages by the post Of
fees. Those who take the trouble to
follow Dawes will certainly lend him
their sympathy, because it is quite
inconceivable that so large an institu-
ton as the Post Office Department
should be unable to tell where their
millions are lost in carrying on their
traffic.
If Mrs. Harding's health will permit
and the wailing European nations can
spare him the time. and the political
affairs in Washington will not suffer in
consequence, then President Harding
will go to Alaska next summer. The
President says he hopes that by max
ing a personal Investigation of condi-
tons that he may be Of help to that
suffering region.
An organization of progressive Mas
sachusetts Republicans has sem a pro
test to the United States Senate
against accepting the credentials Of
Senator Lodge. In their attempt at dis
Judgement they called Mr.. Henry Cab
OF Lodge several things that were not
mentioned in the christening some
thing over seventy years ago. The pro
test evidently did not get far as the
Senate put the papers in the files"
where they will doubtless remain in
definitely.