New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-10-06
SEES GRAVE DANGER IN
FEDERAL RESERVE BOARD
Will Grow Into Most Powerful
Political Machine World Has
Known, Says Sen. Norris.
WOULD ELIMINATE CABINET
Controller of Currency Should
Be Only One of Presidents
official Family on Board,
Nebraskan Declares.
From The Tribune Bureau. J

! From The Tribune Bureau
Washington, Oct. 5.--Predicting that the
| federal reserve board created by the ad-
ministration currency bill will in the
course of years grow into the most power
full political machine the world has ever
seen" Senator Norris. of Nebraska. issued
a statement tonight assailing the pending
! currency measure.
The Nebraska Republican, who. like
! his Democratic colleague. Mr.. Hitchcock,
opposes the administration bill in its pres
ent form, asserts that the federal reserve
board feature Is the most dangerous In the
| bill which, he says, contains both bad
and good provisions.
After reviewing the powers Of the
| board Senator Norris points out that In
addition 10 four members appointed by the
President its remaining three members
the Secretary OF the Treasury. the Score
tary Of Agriculture and the Controller of
! the Currency-will also hold their posi-
tons ~ the Presidents will. and that II
will be an easy matter for any admins
tration to change the complexion Of toe
board. He continues:
| 81 do not charge that any President
would Try deliberately 10 upset the bank
| ing and financial system Of the country
and | do not intimate he would take any
! step with corrupt motive. but within the
recollection of all men it is known that
/ financial systems and combinations have
| often had the sympathy Of Presidents.
/ "The men who control these combina-
/ tons would be able to furnish the sinewS
Of war In Presidential campaigns, and IL
/ is fair to assume they would be rewarded
| in the future as in the past. our banking
and financial system would he on edge at
! every Presidential campaign. II ought 10
, he stable and absolutely unaffected by the
success or the defeat Of any political
iarty."
Senator Norris says he does not thini,
/ Inc political domination Of the bard
would become Immediately apparent.
Every political machine. he contends. Is
a matter Of growth, reaching out for ad-
diuonal power as the public permits ii.
II believe this federal reserve board
would in the course OF years grow into
the most powerful political machine the
world has ever SEEN adds Senator Nor
tis. Its influence would percolate down
. through the federal reserve bank, through
the members OF the local bank down 90
every borrower in the land. This would
come without the assistance OF the re-
serve or local banks, even against their
opposition.
"They would be compelled TO become n
portion OF it and TO carry out the will OF
: the controlling power as matter of self
preservation When the local banker I'm
time Of distress discounts his notes to
the Federal Reserve Bank. they have tn"
power. and must necessarily have the
power. TO refuse his application. They
can give any reason they see III. There
is no appeal. They can supply Bank \.
! on one side Of the street. with unlimited
funds. and refuse all assistance to Bank
Il. on the opposite side.
1T will not be necessary for this ma
chine TO have its influence elective 10
make any threat, demand OF wish. Every
banker in the country will know what
brand Of finance OF of politics is desired.
They will know which public officials
running for office are friendly and which
are unfriendy. Realizing that the ma
| chine may either make or destroy. the
bank will always Try TO do the thing
which will please those In control"
! Mr.. Norris says ;his worst feature Of
the bill has been somewhat overlooked iu
the discussion OF other sections applying
directly to lines Of business. lie regards
the Federal Reserve Board section az tine
most dangerous IN the entire measure.
He criticises the fact that the Secretary
Of Agriculture and the Secretary, OF the
| Treasury, who arc already loaded down
with responsibilities. are 10 be placed on
board which has work enough to take
all the time of its members.
LAS far as the effect is concerned" he
says, "the bill might as well provide tina t
the board shall consist OF the Cabinet II
not entirely eliminated, membership OH
this board, 80 far as the Presidents Off
cial family is concerned. ought to be linn
tied at least TO the Controller Of the Cur
| reucV.'