Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-08-28
CITES Low SALARIES.
YOung's Resignation Revives Question
OF Improving Public Service.
BY DAVID LAWRENCE

M DAVID LAWRENCE
Resignation of Gov. Roy Young as
head of the Federal Reserve Board has
revived the question of whether the
public service will ever be improved
very much if the present policy of
Congress in holding down the scale of
salaries for important posts remains UNI
changed.
One OF the most valuable men In the
Federal Reserve system, because Of his
experience, flrst as a governor of the
Federal Reserve Bank in Minneap polls
and for several years now head of the
Federal Reserve system itself, Mr.
Young's services are now lost to the
Government because he cannot afford
a $4,000 year salary
In accepting the position of the Fed
eral Reserve Bank of Boston, Mr.. Young
goes back to private life because. while
the Reserve banks are supervised by the
government as to policies the salaries
OF the governors are paid by the MEM
Der banks, and they consider the lob
worth at least $4,000 a year, and that
is the salary MIR. Young is now to re-
celve. Congress has nothing to say
about the salaries of the Federal Re-
serve banks, as these are paid not by
the government. but by the banks
themselves directly.
1t took long time before the Chief
Justice of the Supreme Court of the
United States was paid a salary of
$4,000 and the associate judges were
moved up from $4,000 to $40, 900.
Members of Congress have been hest
tant to increase salaries in excess of
taelr own, and even the increase of
congressman to $4,000 year was not
easily arranged, because of the embar-
rassment the members felt in voting
Tor raise IN their own salaries.
Financial Sacrifice Necessary.
While there are members of Congress
who probably never earned $4,000 a
year in private life there are many who
could earn several times that sum in
law practice or in business The whole
scale OF governmental salaries for the
higher executives is, however, affected
by the congressional viewpoint and that
Is one of the difficulties every President
mas In hlling important posts, for in
every case financial sacrifice is in
VOWED If man comes to the Govern
inent service from q successful career
in private life.
This means that the Government Is
dependent upon men who have made
their fortunes and who NAV like to
come to Washington either for social
reasons or because they are looking for
change in their own work and new
interests. Only occasionally is the Gov.
eminent able to get younger men OF
great promise, and when they do come
they stay only little while and 90
back to private life to benefit from the
experience they have obtained In the
Government service.
Officials Grow Timid,
one OF the most insidious influences
IN government results from the low
salary scale. Some officials grow timid
IN the exercise of public duties for fear
they VIII create antagonismS which will
prevent them from getting remunerative
positions in their own professions or
business when they leave the Govern-
ment. Another phase of the matter is
that public officials are frequently be-
sought to make decisions on matters of
discretionary policy by persons who are
IN position to help them in business
Wnen bhey resign from the Government.
Laws have been passed by Congress
TO prevent Government officials from
serving for period of a year or two
after they leave the Government those
companies on whose interests the Gov
eminent had been passing judgment.
IhlS Is particularly true now of the in
come tax personnel. Gov. Young felt
That he could not very we'll accept po-
sitton with private bank, though no
doubt some of the larger banks in New
York would have been glad to get his
services. 1t Is not often that a vacancy
occurs in the position of a regional Re-
serve bank and the post has All inde-
finite tenure. That is why Mr.. Young
accepted the offer even though he no
doubt would have liked to stay on as
governor of the Federal Reserve Board
CCobyripht 1870