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Senate Report Jan 16 1917 (1)

Senate Report Jan 16 1917 (1)

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HeinOnline -- 54 Cong. Rec. 1467 1917
1917.:
.'
CONGRESSIONAL'
REOORD-SENATE.,
1461
Mr. SMOOT.
Yes;
if
it
were
.legislated
in
that
way,
it
would
be.'
1\
h'.
SlJTHERLAND. The authorities have said
over
and
over
again
that
we
are
to look
at
the'substance of
the
proposedlegislation
and
not
at
the
form,
and
,,'hen we come to do
that
and
anal5·ze
this
p r ~ v i s i o n 
w!l.
find
that
it
does, two
things:
Fii'stof
all,
it
creates
an
office,
and
that,
is a legislative act,because
the
office could
not
exist until
Congress
had
spoken;and then
it
provides
for
filling
the
office by
an
appointment.Obviously
this
piece
of
legislation
creates
an
office,
and
it
isgeneral
legislation. I never
have
heard
it
doubted heretofore
that
the
cl'eation
of
an
office
was general
legislation.
There
are
precedents here, one
after
another.
Here
is one
that
catchesmy eye, on
page
134,
Forty-seventh
Congress:
'The
President
protempore
(Mr.
Davis)
{leclded
that
an
amendmentto
the
naval
appropriation
bill
adding
140 surgeons,
of
whom 50
shall
be
designated
as
surgeons,
of the
first class, etc.,
was
'not
In
orderunder Rule XXIX,
and
was general legislation
to
a
general appropria-tion
bill. .On
appeal,
the
decision ,was
sustained-yeas
26,
nays
21.
Now,
if it
is
general
legislation
to
provide
for
an
additional
140
surgeons,
it
is general
legislation
to
provide
for
an
add
i
t i o n ~ l 
1 surgeon.
The
fact
that
there
is only one
inthe
classdoes not
prevent
it
fl'om being a class.Mr. SMOOT.
The
Senator takes the
position, then,
that
noincrease
can
be
made
in
an
office on
an
appropril\tion bill?Mr.
SUTHERLAND.
No; the
Senator
does
not
take
that
pOSition.
'Ve can
increase
thesalarypaid
to
an
office
alreadyin
existence,
but
we
can not create
a new
office.
They
are
twovel'y
distinctand
different things.
1\Ir.
SMOOT. I recognize
that
entirely.
There
is
not any
question
about
that,
and
that
has
been
universally
held.
But
the Senator takes the
position, then,
that
the
only
way
in whichwe could
have
an assistant
to
the Secretaryofthe
Treasury
isby a general bill
creating the
office?
1\11'.
SUTHERLAND.
The
only way is
to pass legislation;
anti when
the
legislation Is passed
it
may becqme a question
as
to
whether
it
is general legislation
or
special
legislation
general legislation
as
distinguished
from
special,
or general
legislation
in
the
sense
that
it
is public,
as
distinguished from,
private
legislation-and if it
is proposed
to
an
appropriation
hill
there
is a
rule
which
says
thatif
it
is general
legislation
it
will not be admitted.
l\fr.
OVERMAN. 'l'his is
not
general legislation.
1\11'.
SMOOT.
There
is
not
an
appropriation
bill passed
but
that
there is the
cI'eation
of
some
kind of
an
office by
the
ap
propriation
bill.Mr. GALLINGER. A
point or order
could be
made against
e\'ery one
of
them.
1\It-.
S1\IOOT.
Of course;
if it
is general legislation,
then the
only way you
can create
a new office is
to pass
a bill
through
Congress
creating
it,
and then appropriate the
money
to paywhateyer salary
is
attached to
it.
1\Ir.
SUTHERLAND. We
do
that
sometimes,
but
it
is donebecause no one objects.
If
the point
was
made---
'
MI'.
OVERMAN. Could we
appoint
a clerk1 Would
that
begeneral legislation?Mr.
SUTBEHLAND. How
does
theSenator
mean?Mr. OVERMAN.
Instead of saying
'that
there
should' be
40
clerks for a
certain department,
suppose we
put
in 46;
would
that
be
general
legislation? 'Mr. SUTHERLA.i\,D. Additional clerks?
1\k
OVERMAN. Yes.
MI'.
SUTHERLAND.
I
think
undoubtedly
it
would be gen
eral
legislation
ifit
is
the creation of
a new office.
MI'.
OVERMAN. Well,
ifthat
is so,
it
would be
the
end of
all
legislation.
We
never would be able to keep
the
Govern
ment
going.
The
wheels would be clogged.
The
Governmentcould not move.
'Ve
could not
get
along
at
all. We never could'
pass
general bills
through
Congress
for
these clerks.
That
would
be
the
enu
of
it.
This
is simply special
legislation;
it
isnot
general.Mr. SMOOT.
If
that
werethe
case, Mr.
President,theHouseof
I ~ p r e s c n t a t i v e s 
might
just
as
well
make upthe
appropria
tion
bill
andhave
it
become a
lawin
that
shapeand
nevercome to
the Senate of the
United
States
for amendment
bythem. .Mr. GALLINGER. Oh, well,
if
the Senator
will
permit
me,
an
apl)l'OI)l'iation bill is not
entirely
composed
of
clerks.
There
are
some
other things
in
appropriation
bills.Mr.
O V I ~ R l \ I A N . 
There
is
not
much else
in the
legislative
hill.
1\lr,
BHANDEGEK
Mr. President, I
have
heard
this
question
l . l i s c l l ~ s e d 
m'el' all(l over
againas
to
what
was
generalleg-i;;.t::tion.
r
nCYCI'
II:!
YC
heen able to form
an
exact
standard
whU',
it
\\w:;
;:;nfe
to
o ] l ~ . J ' a t e 
un(]el'. I wish to
ask the Senator
from Utah,
if
he
will,
permit
me
to
do so,
whathe
thinks
is
the
distinction between
general'legislation and
special legislation"Does
hethink
that
everytliing
that
is
not
generai legislation
has
to be, so to speak,
private
legislation1Mr. SUTHERLAND.
No;
it
may be
distinguished'
in a
varietyof
ways. ' " ,, Mr. BRANDEGEE.
What
would be some speCial
instances
of speCial legislation which could
go
on
an
appropriation
bill?Mr. SUTHERLAND.
It
may
be distinguished along
the line
that it
applies geographically to
the
whole
country or
that it
applies only to a
l i m i t ~ d 
portion
of the
country. Legislation,
for
example,
that
'applies to
the
whole
State,
in
the
case
ot
State
legislation, would be general legi,slation.
If
it
applied toa local subdivision,
it
would be special legislation.
But'
it
is
sufficient
for this
purpose
to say that,
so
far
as
I know,
it
nevel;
has
been doubted
that
the
creation
of
an
office by legislation
was
general legislation
as
distinguished from special legislation.
It
is
notalways
easy to
draw
the
distinction.
It
is one
of
those difficult
things wherethe
c1ivision,
insteadof
being aline, is a zone. You may be
quite
cel'tain,
when
you
are
outside
of the
zone on one side,
that
you
have
got genernl legislation
and quite
certain, when you
are
outside
of the
zone on
the
other,
that
you
have'
got speCial legislation. Now, interme
diatelythere
are
a number
of
cases which
it
is som,etimes diffi
cult
to
assign to
theappropriateclass;
but
here
is a casewhich by
alltheauthorities
falls clearly outside
ofthe
zoneon
the
side
of general
legislation. So
it
is unnecessary
to
refine
about
it.Mr. HITCHCOCK. Mr.
President,
I should like
to
ask
theSenator
from
Utah
if
he
does
not think there
is a
clear
dis
tinction
between merely
adding
a
clerk in
a
department and
aprovision which empowers
the President
to
make
an
appOintment,
subject
to
the
confirmation
ofthe Senate?
Mr. SUTHERLAND.
There
is a very
clearpractical
distinction,
and
it
is
quite
likely
that
there
is a distinction
in the
law;
but,
as
it
seems
to
me,
it
is
not
llecessary to refine uponit, because we
have here
a case
where
by
the
proposed legisla
tion
an
office is to be
created
which is
to
be filled by presiden:
tial
appOintment. Now,
if
that
is not general legislation, I do
not
know
what
genernl legislation is.
The PRESIDING OFFICER. The
question is, Shall
therulingof theChairstandasthejudgment oftheSenate?
,
The ruling of the Chair was
sustained. ,
MI'.
OVERMAN. Mr.
President,
I desire to
put
in
the
REC
ORD
the remarksmade'
before
the
Appropriations Committee by
the Secretaryofthe
Treasury
himself
in regard to
the
necesSity for
havingthis
office created, so
that
Senators
may see
that
the
reason why
the
committee
put
it
in
was because
it
was
just
and
right
and
ought
to
be done.I
therefore ask
to
havethestatement
incorporated in
the
RECORD.
The
PRESIDING
OFFICER.
If
there
be no objection,
it
will
be so ordered.
The Chair hears
no objection.
The
matter
referred
to is
as
follows:
ASSISTAXT
TO
THE
SECRETARY
OF
THE
TREASURY.
.
Secretary
McADOO.
Gentlemen,
there
Is one
other
itom
here
which Iconfess I
present with
an
extreme
degree
of
diffidence,
and
If
It
wero
not
practically Imperative
I would
not
present
It.
That
is the question
I
presented here two years
ago
to
the
House committee,
of
an assistantto the
Secretary of the Treasury.
Sen!ltor
OVERMAN.
Yon
have
a
letter
on
that,
also?Secretary
MCADOO.
Yes.
Senator
OVERMAN.
Is
that
an
official
estimate?Secretary
McADOO.
That
Is
my
letter,
transmitting
the
official esti
mate to
the
President of
the
Senate.
Senator
OVERMAN.
You
want
that
to
go
into
the,
record?Secretary
McADOO.
Yes;
you
can
put
In
the estimate
and
the letteralso
If
you wish.
(The
Jetter
and
estimate referred to
arc
as follows:)
.
TREASUllY
DEPARTMENT,
OFFICE
OF
THE
SEClll'lTAlty,
lV
ashinyton,
Deccmbcr
26, 1916.
The
PRESIDEXT
OF
THE
SEXATE:
-SIlt: I
havethe honur
to
submit herewith
for the
favorable
action
of
Congress
an
estimate
of
appropriationfor
salary
of
an assistant
to
'the
Secretary of the
'l.'reasury,
to
be
appointed
by
the
Secretary,
with
compensation
at
the rate
of $5,000
per annum,thesame to
be
available
from
the date of the approval
of
the act.
'
The duties
that
have
been
recently
Imposed
upon the Secretary of thoTreasury through the creation
of
the
Federal
Heserve Board, the, Fed
eral
Farm
Loan
Board,
the
new
tariff and
Internal-revenue legislation,
,the
Income
tax,
and
taxes upon Inheritances, munitions,
etc.,
and the
promotion of Increased financial
and
commercial
relations with theseveral
HepubUcs
of Central and South
America,
together with
the
tremendous growth of the
business
of the Treasury Department, make
It
Imperative
that
the Secretary
be
granted
addltlonai assistance,
and
I
can
not
too
strongly
urge upon
the
Congress
the grantiug
of
this
request, Inasmuch
as tbe Secretaryhimselfandhis
three assistauts
and,their
respective
staffsaredrl\'en tothe utmostto
discharge
the
dutiesof
their
offices. .Respectfully,
W.
C.
lIICADOO,
Secrctary.
Secretary
MCADOO.
Not only
hasthe
worl<
ofthe TreasuryDepartmentincreased tremendously
In
the
last
three
years,
but
new duties
have
been Imposed upon
the
Secretary
which
arc
very exacting. For
 
HeinOnline -- 54 Cong. Rec. 1468 1917
1468
CONGRESSIONAL
. R E O O R , D - S E N A ~ : E l . 
JiANUARY
16;
instance:\: take'
the Federal
reserve act. Under
that
law the
Secretary
of.
the
" r e a ~ u r y 
is.,
chairman. of
the,
Federal Reserve Board, being amember of
the
board ex officio. While
the
Secretary can,
not
a t t e ~ d . 
every meeting of
the
board, he
must
attend, meetings frequently,
and
Ido attend
just
as often
ns'I
can. Sometimes those meetings; requiretwo hom·s,.·nnd sometimes
mOJ:e
out'of
the
day. 'In addition to
that, the
Federal farm·loan
act
created
the
I!'ederalFarm Loan Board as a new bureau
In
the Treausry Department, whiCh,of course;
must
be
administered; undel"' the' direction of' the Secretary.'.rhla law also makes
the
Secretary of the Treasury a member, ex officio,und chairman
of
the Farm
Loan Board.
The
next
amendment
was"
on page
41,
after
line
17,
tostrike
i
out:
.'
i .
Federal Far'm Loan
Bureau: For
salaries
and
expenses under' tile
F ~ d . 
i
eral
Farm
Loan,
Board
createil
by
the
act
approvedi
July
17, 1916,: including
the
sal1iries of four members
at
therate'
of $10,000 each per: annum,
and their
actual
necessary traveling, expenses
and
such salaries,
i
fees;
and
expenses
as are
authorized
by
said' act! including farm·foan
'registrars,
examiners, and' such. attorneys; experts,
assistants,
clerks,laborers,
and other
employees
as
the·
Farm
Loan Board may find neces·.
i
sary, $300,000. A detailed
statement
of expenditures hereunder
shILl!
be
I made
to
Congress. ",
And'to
insert:
That
work requires
a.
great
deal of time
and
patience,
and
as
tim.e
goeR
on
the Secretary of tile 'rrcasury'
w!l1Ile
obUged
to
give
a.
great
deal· of
attention
to,
those two· organiZlLtions.
It
Is Ilterally impossiblefor.
me
to keep up with aU
of.
tile work which
t h ~ 
Secretary has
to
do
Federal
Farm
Loan
Bureau:
For
four members, of the
lJOard,
at
$7.500with
the
present assistance I \lave. I must have, In order
to
be'
full;V
each;
chief, bond division, $3,000; secretary to
the
board, $3,000;
pUll.
cll'ec!:iyc
in the work,
an assistant
who is
at
my
hand to,
taltc'
up,
the
i
lic!ty agent, $2,000
-i
four
private
seeretarles
at
$1,800'
each;
clerks
m o ~ t 
important
parts
of
the
work.
I!'or
instance,
t l l ~ r e 
are
a
great
: 1 of class 4, 1 $90u, 3
at
$720 each, 1 $600; clerk'
and
stenographer,mall v
matters
relating to official corrcspolld'ence for which I should have ',$1,200;
stenographers-T
at
$1,000 each, 4
at
$900 each, 3
at
$720a mnn
sitting
next to·
me,
intimately familIar with,
the matters
a n ~ 
.
each;
messenger;
and
3'
assistant
messengers; in all', $67,620.baving full lmowledgc of nil
that
Is
going
on·
In tire Secretary's
office"
so·,
For
salaries
and
expenses under ·the I!'ed'eral
Farm
Loan Board ere·
that
110
may relieve
the
Secretary of a lot of tile detaiL work which he
ated
by
the
act
approved·
Jnly
17,
191!6,
including
the actual
necessarynow 'has to
try to
do
himself. I thinl'
that
any
S e c r e t ~ r y 
of
the Treas·
traveling expenses of the· members of
the
boarll and' such salaries, fcc".ury will
be
more efl'ective
in
the'
future
if
he. can devote Ills time'
and
and expenses as
arc
authorized
by
said act, inc1u!Jing farm·loan regis'his abilities to
the
larger affairs of
the
departmenf. I can
not
get
that
trars,
eXlLminers,
and
such attorneys, experts,
assistants,
clerks, laborers.relief through: any of
the assistant
secretlLrles
of,
the
'.rreasury, because
and
other employees as the·
Farm
Loan Board may find necessary, $182,:each of them, under
the
organization of
the
department, has a very
380; in
all, $250,000. A detailed
statement
of expenditures hereunderlarge division of'
the
bureaus under him,
and
Ile
has got·
to·
administer
shan
be
made to Congress. .those
particular
bureaus.
))'or
instnnce,
we·
have
an assistant
secretary,
Estimates
In
detail for aU expenditures. under
the
Federal
Farm
I ~ o a n 
in charge of public buildings and ml,,,,,llaneous offices. He has abso· : Bureau for
the
fiscal year 1919\
ancl
annua\:ly
thereafter;
shall
be
sub.lutely no
t.ime
to
devote ·to any other
·,ork..
' mUted
to
Congress
inthe annual
Book of Estinuttes.
' l ~ h c n 
we
have
an Assistant
Secl·ot',,:
..
in charge of the fiscal bureaus.
'f
"rOLLIS'
",r
..
1?·d
I k .Under him
are
tile Internal·nev(]ll1l<J Hcrvlce,
the
NaHonall' Banlling
lV
r .
.<:
lv.u:.
res
1
ent,
ma
e
the pomt
of
order
that
Hystem of
the
country,
In·
regard to which
the
Comptroller of
the
Cur·
this
amendment
changes,
existinglawand
is
not estimated
for,
rency reports
to the Assistant
Secrc.tury,
and
many.
other
important,
and
pending
the· decision
of
thut
point
of
order
I
deSire
to say
P l ~ ~ ~ r t h ~ t e l ~ e c g g ~ ~ i r i u t ' t n e t l ~ e ~ ' l ~ ~ a ~ ~ , ~ i ~ f i \ c ~ ~ 
devote to the
matters
which •
to
the
Senate
that"
this.
Ipatter
comes,
as
a
c O l l l p l ~ t e 
surprise
110
Then
we
have·
another
Assistn:nt Secretary who has charge of
the
:
me.
It
is
a
matter
which
I
have·
very
much.
at
heart, and
1Customs Division. His time Is fully absorbed
In
that
work. :
want
to-
'
So
the' Secretary of
the
Treasury Is coustantly hampered, and'
in'
fact·
M
OV'
T
,'
",rAN
0
f S tfinds
It
Impossillle to meet
the
demands of the thousand' and' olle
de
tans
I
£
r.
.dJR1Y.t.
'
ne
minute,
i .
the
enaor
please;
Does,which he now
has to
consider in
the
dlllly work of
the
01llce;
and' which
i
he mean the,\vhole amendment?it
would take a long time to describe to you. The correspondencp
of·
Mr.
HOLLIS
..
Yes;
I
mean
the
whole·
amendment.
the Secretary's
o1llce
alone· is a procllglous undertaking,
and
many M O\TERl\"'AN D
tl
S
t
tl
d t
people
resent
It-anel
I
think
It
is
not
unnatural-H
the
replies, to·
their
£
1'.
<
~
I.
oes·
le ena
or
mean.
le
amen
lllell
IX·
letters are not
signed by
the
Secretary himself. They
do
not
thin
I,
thating
the
salaries
of
the
clerks,
and
so, 'on,
or
simply
the
reduction
thc matter
has received
attention
unless
It
gets to
the
heud of
the
o:fl
the salaries
of
the
members
of the board to
$7,500
each?
department,
So
that
if
the
Secretary lIad only
the
two new activities
'U
HOLLIS
mh
. t i
·f
th
S
t
·11
·t
which];
have mentioned added to 'his muny duties, I should think.
that
",,,,r.·
'
..
""
POlll';
S,
1
ena
or.
WI
perml
me,
enc
assistant
for which·I am now asking. is imperative..
that
1
just.
want to
make-'
-
In
addition, during
the
last
two years we have been maklng,
as
you
Mr. OVERMAN.
The Senator has the
floor,
and
I
am
inquir·
know, a very earnest effort
In
the
T r ~ a s u r y 
Department
to
improve our i
of
11·
,
DoestIle
Senn·tOI' m
ll'e
tIle
point
as
to
the
whol
commercial
and
financial relations
with
South
and
Central American
ng
lhl.
,u:
l'
, . '
ecountries.
'Out
of
that
grew the first
Pan
American financial confer.
amendment?'
ence of 1915, which was held
by
authority
of Congress,
and.
wllich :rilr.
HOLLIS.
The
point is
that
I
have not
llUd.
an
opportullity
created
an
international
hIgh commission' composed
of
nine men from
to examine it,
and
I do,
not
kno,v,
whether
the
point'
of
orlier
each of
theLatin
American Republlcs
and the
United States,
the
·mln· ,",oulel,
ll·e.
to
tIle
wllole, n.mendruellt
or
not.
I
am
(wing
to
:lsk
Ister of finance or
the
Secretary of the '.rreasury
of"
cach country being
'"
u
~ '
chairman of each section or
me
commISSIOn.
'.rhe commission
met
,at
the
Senator to
allo,,!
this
amendment
to
be
pa::;sed
over,
and
pmit·
Buenos Aires
last
April and' effected
an
organization by
the
creation d
t
t
tl
t I cnI n
au
OPI)Ortunitv
t)
of a central executive council. The. delegates
at
Buenos Aires
pam
pone
un
1
o·morrow,so
la "n
l"ve
. .
'.
(
the
United
States the
compllment,'
as
well
as the
coul'tesy, of electing
look
it
up,
: ' , ,
the
officers of
the
United
States
section of
the
interna.tional high com·
Mr.
OVERMAN.
I
hnve
no
objection
to
that. Let it
j)e
passed
mission
as
the ollicers of the central cxecutlve council.
So
long
as
that over,
organization continues,
and
unless
a.
change should
be
made, the Sccre"
1\,r."
•.
HOi':L"S.
T l l e ~ ~ " o r e , 
I.
aok
u'n,nn';""OHS
consent
thut the
tary
of
the Treasury
wlll remnln
at
tile head of
that
commission'"
and
lY.LL
""
'"
."'"
" ' ' ' ~ 
as
iong
as the
commission keeps Its headquarters in
the
city of Wash·
entire
amendment
be
passed
over,
with
the point
of
order
pend·
ingtoJl, I feel
that that
work'is of
the
utmost Importance to
the
country
ing;
to
be
taken up
to-morrow.
at
I t ~ ~ s j ~ t n ~ ~ f J : · : i t 
is going
to
'be
necessary to
maintain
this as' a perma.
ThePRESIDENT
pro
tempore.
Is
there
objection'!
The
nent
organization,
but
certainly
at
this
time
and
for
the next
two years
Chair hears
none,
it
will
be
of
great
value
to
contlnue·1t. Diplomacy,
as
you know, deal.s
Mr.
FLETCHER.
I
raise
thefurther point'of
order
tlgai.nst
more partlcul1irly with. political questions, between governments,
and
tl
d t
th
t·t·
11
.
1
on
a
n.
JP
opri
It·
III
commercial
and
financial questions
arc
not'
s'o'
much
the subject of .
le amen
men
nIlS
genera
egIs
a
1011 ' ,
III
,'I
r
l.1(
diplomatic attentl'on
and
negotlatlolli. Having
this
direct touch,
withbill.
The
whole
an1endment
violates
that
ru:le.
the
ministers'
of
finance of
the
countries of Latin. America thuough'
an
The.
PRESIDENT
pro
tempore,
'.rhe
C\'lair
.understands
that
organization autllorlzed
by
each country, to look
after
the
commercful
!
nnder
unanimous
consent.
the
amendment
is,
passed
over.
and
financial questions, arising' bet\veen them and, this· counery,
we
have
the
means of
rather
direct cOllllilnniCation
and
of direct action,
Mr.
HOLLIS
..
And
that
it
goes
over
until to-monow?
and
as we go along
we
find
that
we
are
establfshlng relations of
the
Mr. OVERMAN.
It
is underst00d
that
it
goes
over until
utmos't cordiality throu.,h these
s e ~ t l o n s 
and
that
weare
getting
ma)1y
'to.morrow.
..
tangible
and
practical results.
In
my
annual report
for 1916
r
Wive
referred somewhat coplousl.y
to.
the
work
that
has' been done recently,
The·
next
amendment
WtlS,
011
page'
44,
after
line
6,
to
insert:
and
the
commission itself has made a
report
to·
the· Presi<1ent
which,'For
law
books"
including'
their
exchange, to
•.
be'
expended under
I
tho
has
been filed with,
the
Congress.
For
the
time' being
this
worle
imposes cllrectlon.
of,
the
Comptroller of the'Treasury., $250.npon
the
Secretary
a.
very
large
responslbllLty
and·a
very large bm'dkn,
but
as
I regard
that
as
perhaps of
It
temporary
character
I
do
not
urge
Tbe
amendment
was·
agreed
to.
it
as
a special reason, for
the
appointment of
an
assistnnt
to the· Secre·
The
next
amendment
was;
OIl
page
45,
line
4"
after
the
wor(l
tal'Y
of
the
Treasury. l am requesting
it
on·
other
grounds.
...
clerks"
to
strike:
out"
clerks-13,
of
class
4,
24
(including,1
The
reading of the billwas
resumed.
.
transfel:recl
from
register's'
office)
,"
and,
insert
"14:
(includi.ng
The
next.
amendment
w:as,
on
p a g ~ 
37,
line
25,
after
the
,yards
l'
transferred;
from
register's
office)
of class
4,
23,"
and.
inline
"
inall," to strike.
out"
$61,420,"
and,
insert.
"
$ 6 S , 0 8 6 ~ 6 7 . " 
:
11,
nfter
the
words ".in
all,"
tostrike
out"
$152,910 "
and insert
,Mr.
OLIVER.
Mr.
President,
I
suggest
that
that
amendment
"$-15S,lHr," 'so'
as
to
make
the
clause,
read:
is
not
necessary
now,since
we,
struclt
out the
prov.ision
fOl"
all'
Office
of Auditor'
fon'
Navy
Depar.trnent: Auditor,
$4,00,0·;
chief cIeri,
assistant.
to.
the:
Secretary
of
the·
Treasury.
,and
chief: of cllvfslon.,,· $2,250; law clerk, $2,.000;, ,chIef: of division,, .
82000·
assistant
cMe! of division. $2,000;
clerks-14
(including' 1
Mr. OVERMAN.
No. I
ask.
that
the
clerks at.
the
d ~ s k · 
be
transfe'rred from register's
office)
of
class 4,
23
of'
Class
3;
21 of
clas!!!
allowed
to·
arrange the· totals
after
the
·bill
is,
passed..
That,
is.
2, 25 of class 1, 8
at
$1,000 each, 7
at
$900 each
( i n ~ l u d l ~ g 
1
trans,
usual.
. ferred from rcgister.'s.ollice)
i
helper, $900;. messenger;
.]
aSsultant
meso
. sengers'; 3
laborers;
in
all',
;:0153,110.
The' PRESIDINGOFFICER.
In
the
absence
of
obj.ection;
The
mnendment
was.
agreecl
to.
, ,
that
order
will
be
Illade. .
The next
amendn,l.
ent
was,onpage
45,
line
17,
after
the
word
MI,;
OVERMAN.
III
this
case,
howev.er,
weshould
cllsag):"ee k
tb
"nssorter,"
to insert
"(unap))ortione(l)'"
so
as
to
ma
'e
eto,
the
anlCndrnent.
clause
react:
, '
~ I : h e 
P I t ] ~ S I D I N G 
Oll'FICgn.
The
question is
on
agreeing
to
Omee of Auditor for
Interior
Dcpa,·.tmcnt: Auditor, $4,000;
~ h i e f 
the
amendment.clerk·
and
chief of division, $2,250'; law
c1crR.,
$2,000; chief of dlVlsl·
The
a'lil(!llillll()Ilt
was
rejected.
'slon, $2,000; clerks'"-14 of class 4, 17' of class a,
17
of
dass
:!,
22
ot
 
HeinOnline -- 54 Cong. Rec. 1469 1917
1917.
CONGR,ESSIONAL
REOORD-'
SENATE.
1469·
class
1,
12
at
$1,000 each,
11
at
$900
each;
check
allsorter-
(unappor
tioned). $900;
2
messengers;
2
assistant
messengers;
laborer;
In
all,
$139,430.
The
amendment was agreed
to.
The
i'eading
was
continued
to
page
48,
line
25.
Mr. OVERMAN. I offer a committee
amendment
nt this
point.
It
makes no change in
the
appropriation
whatever,
but
is
merely
transferring
one
clerk to
the
propel' place.
The PRESIDENT
pro
tempore.
The
amendment
will be
stated,The
S ~ : C R E T A R Y . 
On
page
48, line
23,
strikeout
the
word"
two"
where
it
first occurs
and
insert
in lieu
thereof
"one";
in
the
saine
line
strike
out"
one"
and
insert
in lieu
thereof
"
two";
and
in line 25,
in the
total,
strike out
"$27,300" and
i n ~ e r t 
"$27,100," so
as
to
read:
Ollice
of Register of
the
Treasury:
Register,$4,000;
Assistant
negls
t(>r
$2 ;;00 :
chiefof
division,
$2,000;
clerks-1
ofclass
4, 2
ofclass
3,2
of
c l ~ R s 
2, a
ofclass
1,
:3
at
$1,000 each,
3
at
$900 (·nch;
messenger;
laborer;
In
all; $27,100,
The
amendment was
agl'eed to.
'fhereadingwas
continued.
The next
amendment
was, on page
51,
line
6,
after'"
$1,500,"to
insert
"private
secretary
for
captain
commandant, $1,400,"
and
in line 10,
after
the
words"
in all," to
strike
out"
$72,710 "nnd insel't "$74,110," so
as
to
make
the
clause
read:
Ollice
of
the
Coast
Guard:
Two chiefs
of division,
at
$3,000
each;
2
assistant
chiefs of
division,
at
$2.200
each; titleandcontract
clerk,
$2.000; law
and contract
clerk, $1,800,
an(l
$200
additional
while
the
ollice
is
held by
the
present Incumbent;
t o p o g r a ~ h e r 
and
hydrographer,
$1
800'
civil engineer.
$2,250;
draftsman,
$1,uOO;
private
secretaryfor
captain
commandant, $1,400;
derks-4
ofclass
4, 9
ofclass
3,5
of class
2, 8
of class
1,
7
at
$1,000 each,
fi
at
$900
each;
2
messen,
gers; asslstaut
messenger;
laborer;.
In
all,
$74,110.
The
amendment
WitS
agreed
to.
'fhe
next amendment
was, on page
52,
line
24,
after
the
word
"Chief,"
to
strike out "$4,500"
anti
insert
"$4,000";
on page
53,
line
1,
before
the
word"
clerks,"
to
strike
out"
$3,500"
and
in>;el't
"$3,000";
and
in line
3,
after
the
words
"in
all,"
tostl'ike
out"
$17,120" llnd insel't "$16,120,". so
as' to make
the
<:lause
rend:
Secret
Sen-Ice
Division:
Chief.
$4.000:
assistant
chief.
who
shall
dlscbarge
the duties
ofchief
clerk,
$3,000;
clerks-1
ofclass
4, 1
ofclass
3, 2
of
class
2, 1
of
clnss 1,
1
$1,000;
assistant
messenger;in
all,
$1(;,120.
~ : h e 
amendment
wns agreed to.'I'he
next amendment
was, undel'
the
subheall
"Collecting
in
ternal
revenue," on page
59,
line
5,
nfter
the
word
"law,"
to
strike
out"
including pel' diem not to exceed $4 in lieu
of
subsistence," so
as
to
make the
clause
read:
ll'or
salarle.,
anI]
expenses of 40 revenue
agents
rorovhled for by
law,
fees
and
expenses of
gaugers.
and
salaries
and
expenses
ofstorekeepers
and
storekeeper-gangers,
$2,200,000.
The
amendment
was agreed to.
'fhe
next amendment
was, in
the
item
of
appropl'iation for
"Collecting
the
income
tax,"
on page
59,
line
20,
aftel'
the
word
"district:,:," to stt'ike
out"
including not to exceed $4
per
diemin lieu
of
subsistence," so
as
to
read:
Collecting
the
Income
tax:
For
expenses
ofassessing
and
collecting
the
Income
tnx as
provided
In '.ritie [
of
an act
entitled"An
act
to
Increasethe
revenue,
an.]
for
other
purposes," approved September
8,
1916,
includingtheemployment
of
agents. inspectors, deputy
collectors,clerks,
and
messenger. in
theDistrict
of
Columbia
and
the several
collection
districts,
to
be
nppointed
hy
the
Commissioner
of
Internal
Ue\'l'nue,
with
the
approvnl of
the
Secretary of the Treasury,nnd
the
purchase of such
supplies,
equipment. mechanical
devices, IInll
otherarticlesas
may
he
necessary
for use
In
the
District
of
Columbia
nnd
the
several
collection
districts,
$1,700,000.
The
amendmentwas
agreed to.
The
readingof
the bill
was
continued to line
20,
page
62.
Mr.
NIDLSON.
Mr.
President,
I desire to call
the attention
of
the
Senate for
a moment [md especially
the
Committee
on
Ap
propriations
to
the
fact
that
we have reached a point in
the
bill
where they can
easily
save
$332,000 in
this appropriation
bill.
During
the
existence
of
thelastBank
of the
United
Stutes
the
fiscal operations
of'the
Goyernment were
carried
on
through
that
bank. Aftel'
the
bank
suspemled
andwent
out
of
e x i s t ~ 
'3l1ce
as
a sequel to
that
there
was
established
what
we call a
Subtreasury
system,
1111
Independent
Treasury
system in a num
ber of
cities
of
the country
thl'ough which
the
Goyernment cal'
ried
on
its
fiscal opel'Utiolls.
That
system still remains,Undl',l'
the
act
which we passed two
years
ago establishing
the
l"erlerai Reserye System we provided for reserve banks.
There
is no occasioll in those cities whel'e we
have
a
Federal
L'eserye
bankfor
the
Government to
maintain
a
Subtreasury
such
as
we
have
now.
The
Independent
or
Subtreasury
was
es
tablished
for'
the
l)lll'pose of having a place whet'e
the
Govern
ment
in
the
large
cities could
CatTY
on
its
fiscal operations
and
for
the
Vllrpose of
distributing the
money
of
the
country
in
theSubtreasuries
instend
of
having
it
all
congested
and
piled
up
here
in Washington.
There
are
nine
Independent·
Subtreasuries
provided for In
the
bilI, 'In five
ofthe
places we
ha\'e
a
Federal
reserve
bank,
and there is
no
reason
under the sun
why
the Federal
Govern
ment
should
not
carryon
its
fiscal operations
at
those
pointswhere
we
have
a
Federal
reserve bank.
Let
me call
yOUl'
attention
in
detail
to this
matter.
At
Boston
there
is a
Federal
reserve bank.
The
bill
appropriates
$46,570 to
maintain
a
Subtreasury
or
Independent
T r ~ a s u r y 
at
that
point.
There
is no need
of
that.
It
is a duplication
and
nothing else.
The
Government
can
carryon
all its
fiscal operations in
the
reserve
bank
at
Boston,
and there
is no occasion for
the Independent
Treasury or
Subtl'easury system
at
Boston.
I
come
next
to Chicago. Tilere is
another
Independent Treas
ury. Chicago undel'
the Federal
reserve
lawhas
a
Federal
reserve bank,
and
there
is no reason why
the
Federal
Govern
ment
can
not
carryon
its
fiscal operations in
that
Federal
reserve bank.
There
is no occasion
for
the
maintenance of
the
Independent
or Subtteasury
system
at
that
pOint.
The
expense for
the Subtreasury
ut
Chicago is $71,420.
as
appears
in
the
bill.New York is unother place
where
there
is a
Subtreasury or
Independent Treasury,
\Ve
have
a
Federal
reserve
bank
inthat
city.
There
is no occasion
to
maintainan
IndependentSubtreasury
as
we did
under the
old system,
and
there
is noreason
under the sun
why
the Federal
Government
can not
curry
on
its
fiscal operations
through
the Federal
reserve
bank
at
New York.
The
totul
cost
asappears
from
the
bill
of
theSubtreasury
system
at
New York is $154,460.St. Louis is
in
the
same category. We have
a
Federal
reservebunk thel'e.
Ml'.
OVEHMAN. Mr.
President--
The
PHESIDIi:NT pro tempore. Does
the Senatorfrom
Minnesota yield to
the Senator
from
North
Carolina:
Mr. ·NELSON, Certainly.Mr. OVERMAN. Does
the Senator
move all
amendment?
Mr. NELSON. I will move to
strike
it
out.Mr.
OV.I<JRMAN.
I was going to
say
thnt
I
shall not
resist
it,
and
we will
let it
go
into
conference. \Ve ngreed in
the
cOlllmittee
that
vrobably
this
will be done
next
year,
ifit
isnot done [his
year;
but
we did not
have faets
sufficient
to
gUHl'Hntee
us iu
striking
it
out
after
the
OPPOSition
made
by
the
Secretary ofthe Treasury,
but if
the
Senatol'
will
inti'o
dUl!e
an
amendment
to
strike it
out
I
shall
not
resist
it.
MI'.
N1<JLSON.
I am
just
explaining where
the
Government
can
save $332,000 a year.
There
is no reason why
the
Govern
ment
ean not
carry
011
its
fiscal operations
through
its
own
bank
at
that
city.
The
cost of
the Subtreasury
system
at
St,Louis is $33,860.
The
Slllue holds good
as
to
San
Francisco,We
have
a
Subtreasury
system
at
San
}'ranc[sco provided
for
in
the
bill
at
a cost of $25,720. We have a
Federal
reserve
bauk
at
San Francisco.·
Here are
five
cities-Boston,
Chicago,New York, St. Louis,
and San
Francisco-where
we
have
fiveGovernment reserve banks, uud there is no reason
underthesun
why
the
Government should not
carryon
its
fiscal operations through those banks.
There
is no necessity for keeping
the
Indepell(lent TreasUl'Y system alive in those cities.Mr. VAHDAMAN. Mr.
President--
ThePRESIDEN'f
pro
tempore, Does
the
Senator
fromMinnesota yield to
the Senator
from Mississippi:Mr. NELSON.
Chtainly,
I yield. .
1\[r.
VAI1DAMAN. Will
the
Senator
state
what are the
pe
culiar
functions
of
the
Subtreasuries
there:
Is
thereany
reason
why--
Mr. NELSON.
If
I recall
the
date,
it:
seems
to
me
that
they
were established in the
administmtioll of President
Van
Buren.
I am not
clear
about
the
date,
but
they
were
inaugurated
by
the
Government to relieve a
situation
which
had
grown
outof
the fact
that
the
Bank
of the
United
States
was
extinguished
an(\ we
had
nothing
left
except a system
of
State
banks.
The
Goverulllent established
Subtreasuries
in these cities in ordel'to
carryon
its
fiscal operations
and
to
distributethe
moneyin
the country
so
as
not to
have
it
all
congested
at
one
central
pOint.
Thut
was the
purpose
and
that
is
what has
kept
the'
system alive:
There
was some justification for
it
up
to
the
time
we crented
the
l.'ederal Reserve System, .Now,
under
the
Federal
Heserve System
the
Federal
reservebunks
that
we have established
are
.Governll1ent institutions.
The
Secl'etary
of
theTreasury
is authorized. to deposit
as
he
sees fit
all the
Government funds in' those
institutions and to
check upon them. Such being
the
case, these reserve
bankscan perform
all
the
functions.
that
are
required,
and there
is
no use to
retain the
Subtreasury
system
at
those places. .
1\fto.
VARDAMAN. I
quite
agree
with
the
Sennt'or from Minnesota,
The
thing
I can not
understand
is how
they
hapI,encdto be
retnined
in
the
bill.
It
seems to
me-