Spirit of Jefferson. [volume] (Charles Town, Va. [W. Va.]) 1844-1948, 1913-10-14

Il In The House of Representatives
Wednesday, September II, 1913.
The House in Committee of tn
Whole House en- the state of the Unto
had under consideration the bill (H. r
1887 to provide for the establishment
of Federal reserve banks, for furnish
ing an elastic currency, affording mean
of rediscounting commercial paper
and to establish more effective super
vision of banking in the United States
and for other purposes.
| MIR. BROWN of West Virginia
Mr.. Chairman, have worked long anc
hard by the size of the distinguished
chairman Of this committe, and will
him have studied each and every see
tion of this bill, and | expect to vote
for it, although some of the provisions
do not come up entirely to what
might desire. ! expect to vote for il
because believe it to be the beat bill
that could, under all of the circum.
stances. be agreed upon by the com.
mittee and offered to this House
The Federal reserve act. as | said
before, may not be perfect in every
detail, but it contains the true funda-
mental principles underlying all modern
systems on banking. Because of the
radical changes made in the present
inadequate and obsolete national
banking system it has been assailed
from many quarters by its enemies
and ambushed occasionally by those
who ought to be its friends. 1t is too
progressive for some and too conserva-
tive for others It's enemies may be
divided INTO five classes and may be
described as follows:
First Those who are welded to the
present national banking system and
desire no change.
Second. Those who oppose this new
system because they are against Gov
eminent control
Third. Those who insist that money
should be issued by State banks or
private institutions without Govern
ment liability or contract.
Fourth. Those who want an unlimit-
ed issue of greenbacks, based upon
nothing but the credit of the United
States Government.
Fifth. The fifth and last class is
composed of those who are so narrow
and partisan that they are opposed to
any change, however desirable. pro-
posed by the Democratic Party, and
maintain that all truth and virtue is
found in the Aldrich Bill. which bill is
the only true standard of banking from
a Republican standpoint. This oppo-
sItion would rather see the bill fail and
the people denied it's benefits than to
see it passed by a Democratic Con-
gress. Some of them even go so far
as to resent the idea of the Demo-
cratic Party being able to write and
pass constructive banking bill; but
while they attack the measure and en-
deavor to point out certain imaginary
weakness in its construction, they offer |
no remedies. except those advanced |
by the friends of the Aldrich bill, and |
make frantic effort to have these in
in the Glass bill.
The first and great fundamental
change in the new bill is removing from
the banks the money control they have
so long enjoyed and placing it in the
hands of the Government, where it
and constitutionaIly belongs.
This is privilege long enjoyed by the
banks. and, but for their greed and
selfishness, one that might have re-
manned with them indefinitely. When
the epidemic of trusts which for the
purpose of sitting all competition
swept this country, the opportunity
" oo IOO oiiuiius lOi wall OtT66ls anu
the Money Trust was conceived and
formed. The best banker has always
been the one who could make the larg-
est dividends for his stockholders.
The largest dividends for stockholders
means combinations for money and
credit control, usury, and many ques-
tionable if not dishonest methods. In
their greed for gain these combinations
were formed by few masterful minds
and the control of the money and
credits of this country became a SUBJ
ject of barter and sale. So glaring
were the abuses that the people of this
country arose in their might, indepen-
dent of political organizations. and de-
manded that the right to control their
money and credits be restored to this
Government. where 1t constitutionaIly
be longed. This is sought to be done in
this bill.
The President of the Unit5d States
for this purpose is given the right to
appoint Federal reserve board. This
board will be invested with wide and
almost unlimited authority. The
power given the President in this bill,
it has been argued. is fraught with
danger. This every careful, thinking
man must admit, but this power must
be lodged somewhere, and we all know
that it is safer in the hands of any
President of these United States, |
care not to what political party he is