Pierre weekly free press. (Pierre, S.D.) 1889-19??, 1913-08-07
NOTABLE DEFENSE
OF BANKING BILL

chairman of the Senate committee on
banking and currency, intends to offer
an amendment to the pending Owen
Glass currency bill making any use of
the powers Of the federal reserve board
or of the federal reserve banks, for
partisan and self-serving purposes, a
high misdeneanor.
This is disclosed by Senator Owen
In a letter he made public last night.
He addressed it to Joseph 7. Talbert,
vice president of the National City
bank, of New York.
Senator owens letter is intended as
n reply to the statement made public
by the National City bank, criticising
particularly the plan of the admins
tration to place the control of the pro-
posed federal reserve banking system
completely in the hands of the federal
government.
Senator Owen argues that to give
the bankers control of the board would
'violate the experience of England,
France and Germany
The National City bank, known as
the Rockefeller bank, under date of
the 26th inst, sent out to the country
q criticism of the pending reform
bill in the shape OF printed arguments
by various officers of that bank. For
oIIlS Ss1ool oCttGsLo ONS 1oNtA .SSSo
his reply to Mr.. Talbert, although the
first argument in the National City
bank publication was signed by Mr..
Vanderlip.
Senator Ovens Letter.
Here is Senator owens letter to Mr..
Talbert:
The federal reserve board should no
more be st:gmatized by the epithet opolitif
the United States, whose members are all
go political appointees." 1t is in either
case 3 governmental body of the highest
dignity and character-not a partisan ma
chine.
| remind YOU that the president Of
France appoints the governor, the sub
governor and the manager of every one OF
the numerous branches of the Bank OF
France.
I remind YOU that the emperor of Ger
many, on the nomination of the Bundles
rath, appoints the direktorium of nine
members, the governing body. the supreme
administrative control Of the Imperial
Bank of Germany.
has not on its directory a single banker,
broker or bill discounter. but 1t is con-
trolled by public opinion, as a great ma
The bankers have no more right to ask
to tax charge of the governing functions
of the United States proposed to be e:ser-
cised by the federal reserve board than
the railroads would have a right to de-
mand control of the Interstate Commerce
commission. which Is intended to regulate
them IN the interest of public justice.
What the Bankers Asked.
The bankers have no more right to ask
the beef packers of Chicago to demand
the right to administer the pure food act,
which is intended to regulate beef pack
ing in the public interest.
Their point Of view is not the point
of view of the public interest, except so
far as an Individual may be moved against
his own interest. by patriotic ,considera-
lions. And patriotic considerations have
not. in the past, been found sufficient to
safeguard the public against the local, Sec
tional or selfish interests of such private
sire to p~ronaote their private fortunes at
public expense.
Compulsory Membership.
You object that membership of national
banks is made Compulsory" in the pro-
posed system. and at the same time the
suggestion has come from your Immediate
environment that the larger national
banks would refuse to participate in the
you generously and justly call "a great
constructive understanding" :
I am myself quite willing to make bank
membership permissive and to open the
stock books of the proposed reserve banks
to the general public. who will be content.
as the citizens of England, France and
Germany are content. with a low rate of
interest upon such stock.
Your suggestion that these notes are in
tended tn be obligations of the federal re-
serve banks g a serious error. They are
ment ard are intended to be such. and
the language should he made entirely I'M
eauivocai upon this point.
Who Should Exercise Government.
You ask me the question, Shall the
business Of the United states. including
/, note issues, bank credits and the cash re-
serves OF the United States. be SURRENDERED
Internationally into the hands of a board
of seven member appointed by the presi-
dent?"
/ ask Won in return. Shall the control
and 6ciriration of the banking business
of the United states be retained uncon-
ditionallY in the hands IF certain men like
yourself. without resnonsihility to the peo-
pie Of the United States. and shall men
like yourself exercise an invisible govern
ment overNthe commerce and industry of
the United States?"
The very fact the federal reserve board
govern.1enta and altruistic standpoint,
the banks especially included. is the best
ansWef 70 your objection. It is true there
are quite q few thousands of bankers, but
there arc Nh.oG0,0N people under our flag
who are NOT bankers.
Public Will Take S Per Cent Stock.
Would you prefer that this stock OF
the fedaral reserve banks should be con-
the. barise no voice whatever in the fed
erai reserve inks If so, should be
glad to FAYE YOU say so plainly and give
that as your advice. The stock. would
be oversrbscribed 10 times and would
come Straight out of the bank deposits
OF the country In large measure.
the T1ho 1nsmbar banks does not. control
the federal reserve bank it would moi
have any interest in contributing is sin
gularlY unreasonable
What the Banks Receive.
What q member bank gets is the i'm
WESTON NEAR ST. PAUL.
st. Paul, Mimi, Aug. 1.-Within