The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-09-19
Burton Strongly Condemns
Composition of Federal Re-
serve Board---May be Used
for Partisan Purposes, He
Fears

| Condemning some features of the
| Democratic currency bill pending In
congress for which many OF his po-
| litical faith in the house of repre-
sentatives voted almost before he had
| taken his seat. and commencing some
| others, United States Senator Theo-
: dore e. Burton. Republican, of Ohio
addressed the American Institute OF
Bankers at the morning session yes
terday on the subject of The Pro-
posed Currency Legislation"
The Jefferson auditorium was
crowded when Governor Mann intro
duced the statesman. and the speak
er was enthusiastically received and
given careful hearing. His address
dealt largely with statistics and was
more or less technical, though he pre-
scented his views with vigor.
His Main Objection.
Tho senator's chief objection to the
pending currency bill is the regional
reserve bank plan feature. his crit
icism being aimed chiefly at the pro-
vision authorizing the federal reserve
board to control the issuance of cur
rency.
ut is based on an erroneous idea -
he said namely. that a government
or political organization may properly
assume the providing of a supply of
paper currency, directly or indirectly.
IT Is proposed that the government
sha,j assume in the first instance the
redemption of all circulating notes.
This should be left to the banks ex-
clusively. 1t might be necessary for
the treasury itself to maintain gold
reserve as is now held for the re-
demption OF greenbacks.
Discussing the plan to put the re-
serve bank system under the control
of federal reserve board. composed
of the secretaries of the treasury and
agriculture, the comptroller OF the
currency and four others named by
the president. Senator Burton said:
such an organization might at hrst
sem an ideal solution, securing
proper balance between the people and
the banks in the a1i-important field of
the management Of our finances. But
IL is the hane Of our national life thar
politics enters all administrative du-
ties The competition between oppos-
ing parties IL 80 keen that those en-
gagged in enterprises do not feel sure
that the authority of a political board
will not be used for partisan advan
taRe,"
Senator Burton said the idea OF cen
tralization had been adopted by foreign
countries widely remote and different
in policies but added:
There is no doubt a prevalent opin-
ion which must be respected which OPP
poses a central bank. and our geo
graphical area Is SO much greater than
that of other countries that a central
bank is believed by many TO be out
of the question"
Commend~ several Features.
The senator strongly commended the
provisions granting authority to ma
tional banks to accept certain classes
Of paper. the proposed establishment
of branches In foreign countries and
the recently inserted clause to require
reserve banks receiving the circulating
notes of other banks to take immediate
steps for their redemption.
The Ohio senator said that there was
one feature OF the owen -Glass cur
reucy bin which he could not too
highly commend This was that all
bank notes issued to regional banks
should have individual marks. also,
that when such notes were received
by second regional bank II should
he at once returned TO the regional
bank of issuance for redemption.