The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1913-08-29
FESS ATTACKS THE
CURRENCY MEASURE
IN AN INTERVIEW
Would Be Iniquitious Ii
Adopted AS Framed By
Democratic Caucus.
is A POLITICAL MOVE
Says Currency Efuld Be I'm
der the Control of a Po-
litical Gang.

that the Glass-Owen currency bill
4 passed by congress in the shape
that the house Democratic caucus has
framed it, it will prove to be a most
iniquitious piece of legislation in that
it will take control of financial stu
atoms from men competent to deal
with them and place them in the
hands of office holding politicians, who
will deal with them from the stand
point of the boys back home" is the
assertion of Congressman S. D. Fess,
IF Ohio.
In discussing the bill this morning,
Dr.. Fess said: The government
should not go into the banking bus
mess. Ten years ago there arose a
wave of popular sentiment for the
entire separation of politics and bus
ness. The Glass-Owen bill is flying
directly in the face of. this modern
business idea.
Cannot Support Bill.
Il could not support the bill in the
shape that it was sent to the senate
In the first place, the provision calling
for II national reserve banks makes
the number too large. | myself would
be in favor of one central bank, but
knowing that it is impossible to OBJ
tain this, would like to see the num>
ber of regional banks decreased to six
Twelve would be entirely too many,
dividing the reserve funds of the ma
ton into small amounts, scattering it
over the entire country, and in the
times of financial stringency, each of
the twelve banks would hold tight to
Its own reserve.
with the number of banks reduced
to six, the sum held by each bank
would be larger and less subject to
sectional prejudices. --~
The form of bank control provided
for by the bill is wrong. The bill says
that the control, administration, oper-
alton and initiation of the banks shall
be in the hands of seven men, one of
whom shall be banker. These men
are appointed by the government
The Correct System.
The way TO correctly manage the
system would be for each of the banks
to elect member of board that
would have charge of the administra-
tion of the banks and their operation,
subject to review by board of con-
troll with veto power after the man.
ner that the Interstate Commerce com.
mission exercises supervision over
railroads. Who would favor giving the
commission the direct management
of the railroads of the country?
III the board that the bill says shall
supervise. manage and administer the
affairs of the reserve banks of the
country shall be placed within the
sphere of politics, we will have the
money powers of the country taking an
active interest in politics with the ex-
pectation of obtaining recognition on
this board.
Campaign Material.
"In addition we 1sll have politicians
in campaigns making promises of OBJ,
tanning additional funds for once sec
tion OF the country, and later playing
politics to make their promises good
why should we place the money of
national banks in the control of men
who have no interestAsmthem? 1t is
unjust that the ownersSsh1ock in these
reserve banks can have no voice in
their management, but must turn it
over to men that have no interest in
them.
Legislative bills. like chains, are
no stronger than their weakest link
While this bill has some very good
points, it also has some in which little
good can be discerned
Take for instance, the situation
should this country become involved
in war. With large amount of emer-
gency currency in circulation, every
dollar of which is an obligation OF
the government. with an entirely in.
adequate reserve fund to back it, this
money would drop in value so quickly
that it would greatly injure the entire
monetary system of the country and
seriously impair our credit.
Sees Another Danger.
Besides, We would place the finan
cial system of the country in the
hands of men, many of whom think
that all the government has to do to
make money is to place its stamp upon
anything it likes to endow it with
purchasing power. This may lead to
a huge over-issuance of little needed
emergency money that would cause
grave trouble in case of financie' sis
aster.
The proper way for the s, to
amend the bill is to decrease the mum
ber of banks, place them under the
direct management OF bankers. to be
supervised by a higher appointive
board with veto power, and remove
absolutely all chance for politics tC
creep into the control of emergency
currency issues"
Spoke to Teachers.
Hon. S. D. Fess, NJ. c., addressed the
Wayne County Teachers Institute this
morning on the currency question
which is before the house at the pres
ent time, and fully explained the diff