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The Commoner
VOL. 22, NO. 3
Bi
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tho dthor financial achievements of the Ring palo
thoir Ineffectual fires."
' Viscount Bryco adds that in tho bills for fit
ting up and furnishing the County Court House
"tho items of $404,347 for safes and $7,500 for
thermometers were found amusing when ovont
ually disclosed. "
If ho thought thoso itoms amusing, what is
to bo said of tho Reserve Bank's item of $2,
200,500 for a "bank vault and equipment"
tho "equipment" alone being $050,000; and as
compared with "$7,500 for thermometers" what
would ho say about tho Roserve Board's approv
al of tho oxpq'ndituro ,of $251,119 for "acoutsic
treatment," "low tension" and "toilet accessor
ies," with an additional $1,006,5.00 thrown in
for "book vault doors," "furnituro," "kitchen
equipment," "letter, conveyor" and "lighting
fixtures and reflectors and shades?"
Lord Bryco does not mention what Tweed paid
to "Architects and Engineers," but tho Reserve
Board's report to tho Senate ohows that the feo3
to , "Architects and Engineers" alone for New
York's banking tomple amount to $1,106,000, ex
clusive of the "fixed fee" allowed the ' general
contractor, the amount of which, for reasons not
divulged-, tho Resorvo Board carefully avoided
mentioning in its report to the Senate.-
Confronted with tho proofs of his crimes,
Tweed defiantly asked in words which 'in New
York have passed into a provorb: "WHAT ARE
YOU GOING TO DO ABOUT IT?" One of the
things New York did about it was to convict and
sentence him to the penitentiary for twelve
years, and ho died in prison.
It has not been charged that tho "amazing
waste of public money" disclosed by the report
to tho Sonato was tho result of corruption or
robbery, but it is charged that this colossal
waste is a result of wild extravagance and rank
incompetence somewhere. Congress now has the
opportunity to place tho responsibility and apply
the remedy. r
I am inclined to think that some of the di
rectors of tho Now York Reserve Bank, Mr.
Peabody, and perhaps others, were not fully in
formed as to tho bank's indefensible extrava
gance and mismanagement, and that some of
them "DID NOT KNOW ANYTHING ABOUT
THESE THINGS," to use tho language of Gov
ernor Strong in testifying in August last Defore
tho Agricultural Joint Commission. Governor
Strong admitted at that hearing that certain
things were kopt back froth a member of the
Roserve Board itself, on the ground that ho
(Governor Strong) "DID NOT CONSIDER THAT
IT WAS VERY MUCH OF HIS BUSINESS"-
referring to the Comptroller of the Currency, a
member, ex-offlcio, of the Reserve Board.
It is also my belief that cortain members of
the Reserve Board who have taken office since
my retirement from tho Board were also not in
formed, and do not approve of cortain policies
and operations which have become the subject
of grave criticisms.
The Reserve Board's report to the Senate
proves the actual expenditures to October 1
1921, for banking quartorJ for Reserve Banks
in the several reserve district's aggregate S3 9 -3,70,000
and that $32,812,000 ADDITIONAL has
to bo expended in order to complete six of the
bank buildings now under construction, bringing
tho total of the amount already expended for
banking quarters, plus the amount -necessary to
$72B182h000B'X bllildingS UP t0 thQ hueo sun of
This vast sum is exclusive of other largo ex
penditures which tho Board has also planned to
make in other cities whore elaborate buildintrs
have also beoti provided for, or are in contem
plation, and upon wliich Vork will doubtless pro
ceed unless stopped by congress.
Tho Board's official report to the Senate show
that 29,800 feet of space have been set aide fo!
their "Auditorium, Gymnasium, Restaurants and
Club quarters." Tho rental value of this space
figured on what is described in tho Reserve
Board's report to the Senate, as "tho basis of ex
isting rental values" would bo $179,322 ThiH
;rental value" of space appropriated to the
"Gymnasium, Restaurants, Auditorium aud Club
Qar-tes" 1B more than tne total ontal paid by
all of the twelve Roserve Banks in the calender
year 1.917! only tho Dallas Bank at that time
occupying its own banking houso.
The Philadelphia Federal Reserve Bank
which I believe is, in many respects, one of the
best managed in the system, contrives to trans
act the business of its entlro district satisfap?
orily and efficiently in a banking house which
has cost a total, including its modern vault
of $1,814,000 IfTvould be well for the Board
to .try to explain why tho Cleveland Reserve
Bank, although its business is divided between
the imaia bank and. two branchesone at rin
clnnati,' and one at Pittsburgh finds it necei
sary to construct at Cleveland a banking palace
which is to cost, according to tho Board's re
port to the senate (p. 21-23) the enormous sum of
$8,410,257, or more than four and a half times
as much as the Federal Reserve Bank of Phila
delphia although the resources of the Phila
delphia Reserve Bank are only about 12 , per
cent less than tho total resources of the Cleve
land Reserve Bank with branches.
Although the resources of tho New York Fed
eral Reserve Bank, including its Buffalo branch,
are only about four times as groat as the Phila
delphia Reserve Bank, yet the Now York-Bank,
is spending for its banking quarters in New
York city an amount nearly fifteen times as.
great as tho total cost of tho Federal Reserve
Bank of Philadelphia. . -
The resources of the Federal , Reserve Bank
of Cleveland are only about twice as great as the
Fedoral Reserve Bank of St. Louis, yet the
Cleveland bank is spending for its costly bank
ing edifice an amount equal to more than eight
times the cost of the St. Louis liank.
Can any one defend the action of the Re
sorvo Board in authorizing the expenditure for a
palatial banking edifice in Cleveland of an
amount FIVE TIMES as great, according to the
official reports, as that Reserve Bank was ever
lending at any one time on "AGRICULTURAL"
and "LIVESTOCK" paper in that entire district,
Ombracing the whole of Ohio and parts of Ken
tucky, West Virginia and Pennsylvania
These inconsistencies demand some explana
tion. They indicate a riotous and colossal waste
of public finuls.
The sum which the-Reserve Banks 'have al
ready charged to "depreciation" in connection
with their building operations, according to their
report to the Senate (p. 21-22) is $7,030,000.
By those simple bookkeeping entries the United
Stato Treasury was deprived of about $6,327,
000 of the earnings of tho banks which it would
otherwise have received. That sum alone is
nearly as much, and in some years more, than
Congress appropriated for all public buildings
in the entire United States, including p,t.st of
fices, custom houses and court houses in any
one of the years 1919, 1911, 1905, 1902 or 1901.
It is for the congress now to answer the ques
tion which Governor Harding of the Reserve
Board and Governor Strong of the New York
Reserve Bank are probably already asking:
"WHAT ARE YOU GOING TO DO ABOUT
IT?"
I will-quote in conclusion the following para
graph from my letter to Senator Overman- of
December 2nd:
"Economy and efficiency in the operation of
tho Federal Reserve Bank of New York, are, of
course, highly important; but the question of
salaries paid, however grossly excessive they
may be, or the expenditure of $25,000,000 for
a palatial bank building are small in compari
son with, other faults and evils to which T have
directed public attention in connection with the
management of the Federal Reserve Bank of
New York, and the administration- of the whole
Fedoral Reserve System by the Reserve Board."
Yours truly,
JOHN SKELTON WILLIAMS.
NEBRASKANS GET COAIi AT COST
Lincoln, the capital of Nebraska, is not suf
fering from a coal famine this winter. Neither
is it paying a tribute to a ring of coal profiteers.
Despite the fact that the coal mines are nearly
five hundred miles distant, and that freight
charges are more per ton than the cost of the
coal at the mine, the people of Lincoln are pay
ing less for coal than are the citizens of cities
within sound of tlio mine whistles. Co-operation
did it. l
The hero of tho Lincoln coal users is Charles
W. Bryan, brother of William Jennings, the
eminent apostle of free silver, grape juice, and
international peace. Some months ago Mr
Bryan made an investigation, and declared that
the Lincoln coal dealers were shameless profi
teers; that they could sell coal for $4 less per
ton and make a reasonable profit on if and
that if the dealers did not reduce the price's, the
people of the city should-go into tho coal busi
ness on their own account and get coal at cost
The city council turned a deaf ear to Mr Bryan's
proposal. Thereupon ho began a popular edu
cational campaign in the newspapers. Beine
endued with some of his brother's political
sagacity, ho took advantage of tho approachinc
municipal election to suggest that the peopll
should establish not only a municipal coal yard
but also a municipal public market and a mu
nicipal ice plant The "substantial" business
men of the city refused to support this program
Whereupon Mr. Bryan cast his own hit in the
ring, and was elected at the head of the ci ?
commissioners. When the four other commh?
dnnorfi rlp.fpn.tnfl Vile rtirltnanAn i . . ...
coal yard, he appealed, again to tho neon p.
immediately petitions were circulated nffi,.,Xd
initiative and referendum to enact thP he
yard ordinance, recall two of the commteoLC0al
and replace them with men pledged to !?'
Bryan's- program.- The commissioners '
passed the coal yard ordinance to head off S
movement, but the patriotic coal profiteers m ,
to -shut off the city's coal supply, Snl
that, they attempted unsuccessfully to S,,11
an injunction forbidding the city from S
,ing the coal business. But Mr. Bryan sttJl"
his guns, and the city's coal game.
The report of tho people's coal yard for tha
first two months' operation more than fulfil!
Mr. Bryan's promise. The city bought the w
Southern Illinois, coal for $3.85 a ton sold ft
for $4 a ton Jess than the private ' deaiPr:
charged, and on a$30,000 business made i not
profit of $2,500, which goes to carry on the won
and reduce the citizens' taxes. Who lose when
the people gain? From Organized Labor ?a
Francisco, Calif, Feb. 11. ban
"BRYAN CAN WIN"
Tho above quoted line is from The Observer
published in Jacksonville, and refers to the talk
going the rounds' of the press that William Jen
nings Bryan aspires to the United States senator
ship from Florida.
But it should be"" understood that Mr. Bryan's
only comment up to this time, when asked about
his political aspirations, has been that he is de
voting himself to other li,nes of work and has
settled ddwn to enjoy the entire winter in
Florida. He is apparently not disturbed by poli
tics. The' Observer's editorial is as follows:
Can William Jennings Bryan go to the United
State senate from Florida?
The question Is easily answered. He can
sweep tho state should he became a candidate.
The writer this week made it a point to inter
rogate various people as to their opinion regard
ing this matter. A correct account of the num
ber with whom the matter was discussed was
taken. It totaled 87. Several of these were
those who belonged to theso-called special in
terest class.. Of the latter everyone said "Bryan
could win," except one who was very much op
posed to Bryan. This one voted for McKinley,
Roosevelt, Taft, Hughes and Harding.
The sentiment among-those who talked to the
writer was that Bryan could be a great asset to
Florida in the U. S. senate.
The opinion ameng leaders was to the effect
that Bryan would have aif enormous majority
over any man who would' oppose him. His vote
in west Florida, it was argued, would bo al
most a clean sweep.
Ho would have the moral forces behind him.
He would rally to his support the women vot
ers, because 11 was the recognized champion of
woman suffrage. .
He is the nation's most noted expounder of
prohibition, and Florida with the women added
is strongly prohi in every county in the state.
There is no question as to how the farmer
vote of Florida would stand.. It would be en
thusiastically aroused in favor of Bryan.
Florida with Bryan in the senate would have
democracy's mo3t militant, influential, and ac
tive brilliant leader.
The Observer, believes5 that if he should be a
candidate, Bryan could" carry every county in
Florida.
The above is the opinion gained after talking
to eighty-seven men, including bankers, judges,
merchants, political leaders and wage-earners.
Bryan can win.
Ho would be a great asset to tho slate and
nation, , '
He is legally qualified. (
All honest endeavor should be utilized to have
him enter the race. .
Florida needs him. ,
Tho nation needs him. Miami Metropolis.
Tho world dods monre. The Nebraska supreme
court recently refused to grant a new trial to
a convicted criminal although it was plain to
tho judges, that technical errors had occurred
during the first hearing. It held that where
there is no substantial miscarriage of justice
errors in procedure will not secure a new trial.
This is a far cry from the day when the Missouri
supremo court granted new trials .to boodiers
that Joseph Folk had convicted, on the grouna
that tho word "the" was omitted from the title
of the case brought in the name of the state.
If congress does adjourn without passing j
bonus bill the veterans ot the world war n
find out what is meant by a short session.
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