qualifications are outstanding to the extent of $348,721,925, of which $346,681,016 are the old war-time greenbacks and $2,040,909 are Treasury notes of 1890, which were issued on account of silver purchases but which are payable in coin.

The suggestion has been made frequently that advantage should be taken of the present plethora of gold to retire permanently these notes. No doubt some of the opposition which manifested itself in the late sixties and the early seventies against the retirement of legal-tender notes may spring up again, should their retirement be seriously considered. But, if our currency is redundant, would it not be wise to strengthen it by retaining gold, at the same time retiring the notes that have caused so much controversy and disturbance in times past? The principal objection will probably come from those who may fear that the retirement of the legal-tender notes will lead to permanent contraction, but if they could be convinced that this is not the case and that the vacuum created could be filled at any time when necessary by Federal Reserve notes of a truly elastic character, their opposition would have little to rest upon. If Congress should ever decide upon the retirement of the greenbacks, the Federal Reserve Banks could be utilized as a means of effecting the operation, without the slightest disturbance to interest rates or to credit facilities.

Branch Banks Abroad

So far, any influence the Federal Reserve Banks have exerted in the field of international finance, apart from their importance as the holders of domestic reserves, and their position when considered collectively, as a dominant factor in American banking, has come from their ability to purchase or discount acceptances arising out of transactions involving the importation or exportation of goods. Later on, in all probability, the Federal Reserve Banks will avail themselves of the powers given them by law, with the consent of the Federal Reserve Board, to open and maintain banking accounts with foreign countries and to establish correspondents and agencies abroad, but so far they have done nothing in the foreign field except to encourage the development of the acceptance business, which is already playing a very important part in financing our commercial transactions abroad. The Federal Reserve Act authorizes national banks to establish branches in foreign countries, and the amendment of last September permits them to become stockholders in corporations organized for the purpose of carrying on a banking business in other countries. Already two American banks have established branches in the West Indies and in South America, and it is thought that their example will be followed by other banks in due course of time.

Two years have elapsed since the establishment of the Federal Reserve Banks. While they have not been operated with an eye to profit, they have earned their expenses and a part at least of their dividend requirements. The prejudices which existed in the beginning against the Federal Reserve system have to a great extent disappeared. The Reserve banks had not been established in the summer of 1914 when the country was brought face to face with a great crisis because of the outbreak of the European war, and since their organization they have had

no opportunity to give a practical demonstration of their efficiency as emergency institutions, and because of the remarkable ease in money which has existed almost continuously since their establishment, they have not had the opportunity of exercising very actively the ordinary functions for which they were designed. They have nevertheless met every requirement, and have gained steadily in the confidence of the public, and the fact of their existence has enabled the country to withstand, without the slightest financial disturbance, many shocks and sensations which would probably under old conditions have been followed by unpleasant results. I think it may be said truthfully that the Federal Reserve system is no longer looked upon as an ephemeral experiment. The country recognizes that it has been established upon a firm and enduring foundation, that it has not been and cannot be conducted for the sole benefit of any group or interest, but that the policies governing its operation are, and must continue to be, broad enough to serve the banks and the patrons of banks, without discrimination throughout the entire country. The Federal Reserve law as it stands may not be perfect, but we have every reason to believe that the country feels that it is correct in principle and that any changes which may be made in the law from time to time will be along practical lines which will enable the Federal Reserve Board and the Federal Reserve Banks better and more adequately to provide for all contingencies, and to measure up more fully to the duties and responsibilities which have devolved upon them.

THE CHAIRMAN. Gentlemen, we have here a telegram from our first honorary member. Mr. Winship tells me that the honorary member was invited to be here to-night, but was unable to come. He came forward at the time when we were raising the funds for this playground. Mr. Winship tells me he was one of the very first subscribers towards our bonds; and I am going to ask Mr. Winship to read his telegram.

MR. WINSHIP. The telegram is signed by Mr. Henry Clews, of New York, who subscribed the first thousand dollars for the building of this clubhouse: "I regret exceedingly that I am unable to be with you. on this, the tenth anniversary of your life. You have grown from small conditions to be the largest club in your class in the United States, and I am glad to know that you have a new building worthy of your organization. I am proud to be an honorary member, and tender you my congratulations and best wishes. (Signed) Henry Clews." [Applause.]

THE CHAIRMAN. Our next distinguished speaker is going to speak to us on the subject of "Pulse and Other Pabulum." I asked him, a few moments ago, what pulse was. Of course you all know, but I didn't. Well, he told me, and it appears that "pulse" is a Washington name for what around here we call a "bean." [Laughter.] Now, I think you will agree with me that any one who comes up here all the way from Washington to tell us something new about a bean has got his nerve right with him. [Laughter.]

Then, he is going to speak to us about "pabulum." Well, I did not get so far as to ask him what that meant; but I have an idea. He can tell me if it is right: I think that is the kind of stuff we make paper of in our paper mills. [Laughter.] So, we know something about that, too.

I have difficulty in introducing our next guest. The first problem

I have is this: He is absolutely known to all of us, and to every good housekeeper in the United States. His name has been as familiar on the lips of the entire family as salt or pepper. But, seriously, gentlemen, we have as our guest, who is about to address you, a very distinguished man; a man who has been a great public servant to us in this country. So I take pleasure in introducing our distinguished guest, Dr. Wiley. [Applause.]

Dr. HARVEY W. WILEY

Inasmuch as sermonizing is the popular amusement of Boston just at the present time, you will find my text in the first chapter of Daniel, twelfth verse. [Laughter.] And also in Second Samuel, seventeenth chapter, twenty-eighth verse.

Nebuchadnezzar is the author provisional author of my text. Nebuchadnezzar was a food faddist. He had peculiar ideas about food; and when Daniel and the three unpronounceable friends of his who were captured with him were brought to the king's palace, Nebuchadnezzar proposed to organize the first diet squad that was ever organized, the forerunner of the "poison squad," which came several thousand years later; and he tried it upon the dog. He ordered the prince of the eunuchs, who was quite a considerable man about that throne, to put Daniel and his three unpronounceable friends (after giving them names that Nebuchadnezzar selected himself) on this diet of the king's meat and the king's wine, with the idea of freshening up their complexions and increasing their avoirdupois. He did not know about the modern ways of doing that.

But Daniel had notions of his own about diet, and he rebelled at this attempt to feed him things that he did not want; and he got on the good side of the prince of the eunuchs. In fact, he was so powerful in Court that Nebby himself looked like thirty cents. He was the whole show. And David - Daniel, I beg his pardon - Daniel got on his good side and won him over to his side, and surreptitiously-[turning to the Chairman] you know what that means? [laughter] — well, it has nothing to do with glucose-surreptitiously he acceded to Daniel's request. It was a very simple request — I don't suppose you have read that Book in which my text is found, because when I modestly asked your Civic Director for a copy of that Book, he confessed that there was not one in this Club. [Laughter.]

I intended to read you a full dose of my text from the words of the Book itself. I am only paraphrasing, but I am giving you the truth and essence of it. Daniel said all he wanted in the world was a little pulse and a glass of water for his diet, and "Prove thy servants, I beseech thee, ten days; and let them give us pulse to eat, and water to drink; then bring us in and look at us; and then look at those who eat the king's meat, and judge well between them and us." They were put on this diet for ten days, and, lo, when they were brought forth it was said that they were fatter and fairer of face than all the children who had eaten the king's meat; and they were brought before the king,

and the king was tickled to death with them; and then Daniel and the eunuch became co-rulers of the East, with the governor.

Now, in my text from Second Samuel, seventeenth chapter, twentyeighth verse, they said, "The people are enhungered"; and they set before them an abundance of flesh of oxen and sheep, and barley and wheat in abundance, and pease and beans and lentils and pulse. Pulse had very good company in Samuel, and very poor company in Daniel.

Pulse and Pabulum

There is just this that I want to say to this audience to-night, that "Pulse and Pabulum," being alliterative, is still expressive of what is fundamental in the civic life, in the city life, and in the national life. The diet which Daniel selected is the type of simplicity in diet. Now, of course, Daniel never had any opportunity to study nutrition. Had I been in Daniel's place I would not have selected pulse and water as a simple diet, because it is not a well-balanced diet; it is the kind of diet which the author of "Eat and Grow Thin" had in view. Pulse is a leguminous plant. It is rich in nitrogen and poor in carbohydrates; therefore not an ideal food, but a simple food; and the idea of Daniel was that simplicity in diet was what made men healthy, and that by practicing a simple diet he would get fairer and fatter; but, then, he could not do it on pulse. I don't want to quite disagree with the sacred writer: but he could not get fat on pulse. He must have had something on the side. [Laughter.] I am not quite sure that the superiority of the Massachusetts intellect which everybody recognizes, especially those who live in Massachusetts- I am not so certain that it is got by eating codfish, as it is usually supposed; I think it is the sacred Boston bean, that diet which is so rich in nitrogen, which is a rich constituent of the brain, and not phosphorus, as is usually supposed; and for a brain diet the Boston bean is vastly superior to the codfish; but when you take them both together you have an ideal diet for the brain, and also a brain food. That, perhaps, is the reason for the intellectual superiority of this great Commonwealth; in fact, we don't speak of Massachusetts down our way as a Commonwealth. We think it is an uncommon-wealth that you have up here, as far as our experience is concerned. [Laughter.]

Simplicity in diet is the fundamental of nutrition; and what is the greatest problem before the world to-day? It is not the Reserve Bank nor any other banking system; that is not the great problem before the people I am a great believer in the Reserve Bank system; I think it is a splendid institution; but that is not as such the foundation of the most important strength and wealth; it serves it, it directs it, but it does create it. A country to be great must first of all be well-nourished. Now, a little glance at history and experience will show you what nourishment does for humanity. The world's well-nourished nations are those that are largest of stature, that are the most energetic, that are the most inquisitive, and are the most inclined to push into the unknown, and they are those who in the end endure, whatever the task they undertake, no matter how great it may be in the end. They are those who complete the task and reach a successful terminus thereof.

I well remember my diet as a boy. I will tell you my diet now, year in and year out, with little variation. First, corn bread, products of corn ground on the old-fashioned mill. Second, milk and sorghum molasses, and the Bible. Those were the four staple articles of diet of the Hoosier boy, and mighty good diet, too. I am trying to bring up a couple of boys now, trying to bring them up in that simple way, on that simple diet. I will bring my boys up on corn bread, skimmed milk, and the Bible, and they will grow to more stature of body than had they not been brought up on that diet, and to that fortunate heredity of the mind. That was Daniel's idea in procuring pulse and water for himself and his three companions.

Now, Mr. Storrow, if you will go up to the bottom of the High Cost of Living Commission, of which you are an honored member, begin right there: If you are going to swat our old member, H. C. L., swat him in the solar plexus. With the high cost of living and its complexity you have to begin right; teach this country the right sort of living. The analogy is in the first chapter, twelfth verse, of Daniel, not Second Samuel, seventeenth chapter and twenty-eighth verse; and that is the fundamental idea from which every investigation of this kind must start. I am quite familiar with it; I have got it myself, that swatting of the middleman as being the cause of the high cost of living, or the transportation company. While they are to blame in some respects, first of all the thing which hurts this country and hurts every country that is built up is this craze for eating everything and all at once.

We have had a very nice, simple diet here to-night. A typical diet. We might have left off that cold storage ice cream. I see it was B. C. B. C.- that means that it is at least two thousand years old. Yes, we should have left that out. And we could have left out the " demon rum, too. And we might also have left out the cigar that our President is smoking. When you think that the cost to the consumer of alcohol and tobacco is at least ten times the tax which Uncle Sam lays on them, and that that tax this year amounted to five hundred million dollars, you can see that we have spent in this country during the past year five billions of dollars for two things which not only do not nourish us but are positively injurious. The second swat, Mr. President, is to swat the demon" rum, and that will save five billions of dollars to the American people out of the high cost of living.

The Ideal Preparedness

The preparedness that I teach means to bring up every human being, man and woman, so that when the crisis comes, if a crisis threatens our country, every man and every woman may give himself and herself to the service of the country and be able to bear arms and tend in the hospitals as nurses, and do everything that a man and woman can do together in the way of serving the country.

I used to make Fourth of July orations and brag of my country; but I have quit it. Now, when anybody asks me to make Fourth of July orations, I say No, I could not do it. I would tell the truth about this country. I would tell the people that there are more murderers in this country, according to our population, than there are in Spain,