The Birmingham age-herald., 1913-07-10
NEW RESERVE BOARD
ISSTEPP|NGS STONE
TO GREAT POSITIONS
Uncle Sans Comptrollers
Have Invariably Received
Big Salaries Upon Re-
tirement
PLACE BRINGS OUT
MANS REAL ABILITY
History Has Also Shown That Men
Who Make Best Officials Need
Not Have Been Practical
Bankers
Nv HOLLAND

New York, July 9.-tSpeclah)-i - TIC
precedents are any guide theh the
members of the federal reserve boaro'
which is to be the final and exclu-
siye authority over the new banking
system in case the bill now before
Congress becomes a law, can be as
sured that the crater their successes
as administrators of the new system
the more likely they are to be
tempted from governmental employ
ment to high positions in the national
banks of the country. That will be
in entire accord with the careers OF
many of those who have' served as
secretaries of the treasury. So also
almost every one of those who have
served since 1862 as comptrollers OF
the currency at Washington have gone
from that office to highly renumerative
and responsible employment IS bank
officers.
The late Hugh McCulloch had the
unusual distinction of having served as
a bank officer of Indiana, as comp
troller of the currency at Washing
ton, twice as Secretary of the Treas
ury. and again as bank officer. John
Sherman was invited to become pres
ident of an important New York bank
at a very large salary as soon as he
retired from the treasury department
at Washington, in 1881. Sherman. how
ever preferred to return to the Sen
ate. William Window, who was twice
Secretary of the Treasury was for some
years prior to 1889. after he first
served as Secretary of the Treasury,
prominently occupied with financing
operations which brought him into
close association with important banks.
Cleveland's first Secretary of the
Treasury Daniel Manning, retired from
the treasury department to become
president of a bank organized for him
In New York city. and his successor,
General Fairchild was chosen president
of an influential trust institution i'm
mediately after his retirement from the
treasury department.
Lyman J. Gage. Mchinley's Secre-
tary of the Treasury, resigned to be-
come president of great trust insti-
tuition in New York, and his successor.
Governor Shaw, resigned to become
president of another trust institution.
The presidency of a large trust insti-
tuition was offered to George b. Cor
telyou after his term as Secretary of
the Treasury in Roosevelt's admins
tration endedA but he preferred the
presidency of a very large public utili-
ties corporation.
The office of comptroller of the cur
rency has furnished so many bank
presidents, many of them having been
very successful in their administration
of banks that this bureau at Washing
ton is often spoken of as a stepping z
stone to highly renumerative and re-
sponsible executive positions in banks.
Good Judgment and Common Sense
The criticism has sometimes been
made that the contemplated federal
board of control is not likely to be
well managed as long as its member
snip is made up of men who are in
the strict sense. political appointees of
the President The presumption is
that men of banking experience are
needed If the administration of this
board is to be satisfactory
Yet the history of the treasury de-
partments itself and especially the HIS
tory of the administration of the bu-
reau over which the comptroller II
the. currency presides does not tend
to Justify this criticism.
salmon p. Chase. who was appointed by
PRESIDENT Lincoln Secretary of the Treas
ury, was of high authority as states
man, of great and splendid repute as a
politician in the better meaning of that
'''iiis anu iidu DteH II pubic servant.
senator from and governor of Ohio II
was said of Governor Chase when he fool,
the treasury department that his expert
ence did not justify bankers in having
great confidence In his Judgment or ability
lie had some training as counsel for and
director of an important bank in Cincin-
natl. Yet his name has become tradi-
uonal as that of a master administrative
government financier. His successor, Will
liam Pitt Fessenden. senator from Maine,
was distinguished as a lawyer. who pos
sessed wonderfully clean. acute and pro-
found intellect but was not esteemed as
man who had gained any reputation or
authority as banker or financier. Yet his
brief administration of the treasury de-
partment before his return to the Senate
was admirable.
George f. Boatwell, who was General
Grants Secretary of the Treasury in his
first administration, was a politician OF
high reputation, but he had had no special
training as a banker. His administration
however, of the treasury department was
eminently satisfactory
The Comptroller of the Currency
Some of the very successful admin
traitors of the comptroller's bureau were
men who had little or no experience as
bankers. That was especially true of
Comptroller Eccles, who. in fact, was as
tonished when President Cleveland named
him comptroller of the currency for he had
been ambitious to be appointed to some
legal office under the government His
administration of the comptroller's office
is now one of the best traditions of that
office, and 1t was so successful as to at
tract the attention of men of banking cap