Wheeling majority. [volume] (Wheeling, W. Va.) 1907-192?, 1913-08-07

Setting aside the provisions Of the
constitution and the universally ac-
cepted maxim that Congress shall
have power to coin money" the fran
ers of the bill apparently have assum-
ed that the banks shall have the
power, but this shall be their monop-
oily and that confiding people will
accept as money for honest work
any kind of dishonest chromes the
banks with the aid of Ito them
friendly Congress and administration
/ may see fit to tender.
Instead Of more public money for
public use based upon and paid out
for public work performed the bill
provides for more private money for
private profit based upon private
property. It provides money for the
man, who does not work, none for
the one who works. 1t is FOR Capt.
tai, AGAINST Labor The bill ignores
| absolutely the first principle for the
issuing of money that it must be in
the nature Of certificate for public
work performed and issued for such
only, the certificate emitting the
holder to. other things in exchange for
his work. The Federal Reserve Act.
the same as the Emergency Currency
Act provides for the issuing of money
on ''any old thing" lying around in a
banfl. The bill absolutely ignores la
Dor Work is factor not consider
| ed, only property. It stabs labor in
the back.
Instead of more protection and guar
antee for people even as depositors
in banks, most of the present protec-
ton has been taken away. The re-
serve to be held as guarantees for
the depositors are decreased and may
be entirely done away with. The
banks through the Federal reserve
banks and the Federal Reserve Board
have in case of failure secured a first
and paramount lien upon all their as
sets in preference to the depositors.
You may go through the bill with
fine tooth comb and l do not believe
you will find a single place where the
people come i'm. The government
to hold the people, while the banks
rob them, seems to be the animus OF
the bill.
The first peculiar thing observed on
reading the Federal Reserve act is
that to organize at least twelve Fed
eral Reserve Banks a sum of 500, 900
is provided for. The only conclusion
one can come to is that already exist
ing banks are already chosen and will
be designated as Federal Reserve
Banks.
The next point is that while only
one-half of the subscription to the
Federal Reserve Bank is to be paid in
the remainder becomes a liability, sub
ject to call by the Federal Reserve
Bank. Would this liability also like
the paid-in capital in case of failure
have preference over the liability tc
the depositors?
The whole arrangement provided
for in the bill, when put into complete
operation, with the reserve banks act
ing as clearing houses for the mem
her banks and the Federal Reserve
Board acting as clearing house for the
Federal Reserve Banks would form
splendidly organized banking trust
The intention apparently is by MAX
ing the members of the Federal Re-
serve Board all appointees of the Pres
ident and the Senate to put the bank
ing trust, which this law legalizes
under the control and regulation of
the government. History however
teaches us that in nearly every case
where the banking interests and the
government have gone into partner
ship with the idea that the govern
ment should DE the controlling fac
tor the result has been that the bark
ing interests have controlled not. only
the banking, but also the government
And if the purpose is control, why not
let the direct representatives of the
people. the House of Representative
elect the Federal Reserve Board. The
financial history of the United States
also teaches us another thing, name
ly, that the Secretary of the Treas
ury, the Comptroller of the Currency,
the chairmen of the banking and cur
rency committees of the Senate and
the House, and even the President
himself nearly at all times have been
,subservient to the interests of the
banks. The character of the Federal
Reserve Act" would seem to indicate
that the present occupants of these
positions form no exception to the
rule. They would be the men to name
the members of the Federal Reserve
Board for eight years, to protect the
interests of the people and their gov
eminent, Could they be trusted?
The banks in two days might OBJ
tain control of majority of the mem
bers of the Federal Reserve Board,
either through control of the Senate
which has the privilege Of advice
and consent" in regard to the four of
the seven members, or through con-
troll of the President, who appoints
the three ex-oficio members; these
with the one of the other four who
shall be person experienced in pank-
ing" would also form a majority OF
the seven. Electing twot-hirds of the
members of the Board of Directors of
the Federal Reserve Banks the stock
holding banks thereby have full con
troll over these directors, even though
the chairman is designated by the Fed
eral Reserve Board, and the Federal
Reserve Board has authority to re-
move some of the members. The Fed
eral Reserve banks are given the pow