St. Johnsbury Caledonian. [volume] (St. Johnsbury, Vt.) 1867-1919, 1913-12-24
Sen. Root On Currency


In discussing the currency bill just
passed Sen. Root of New York pre-
dicted that under it's provisions there
would be an imitation of the currency
If the right TO rediscount notes was
left in the control of the federal re-
serve board. He said in part
1.-The puculiarity about 'this board
Federal Reserve Board-to which
we are going to intrust the perform
ance of our duty, is that the mem
-bers are to be selected from diff
ferent sections of the country. Many
sections of the country are exceeding
ly anxious for more capital. One of
the troubles about our SYSTEM
will not put it just that way; but
will say one of the causes of COM
plant about our SYSTEMS that for
a great many years men have been
going from all parts of the country
to New York, and Boston, and Phil
adelphia, and Chicago, and other
Considerable cities to get the money
with which to develop their sections
of the country. 1 myself, practicing
law in the city of New York contin-
ually in the courts in the trial of
causes of all kinds, have seen year
by year for between so and 40 years
a continual procession of men COM
ing to New York to get money to de-
veIop the resources of their sections
of the country. Ninety-nine out OF
a hundred have gone away angry
ami resentful because they could not
get hard-headed, unconscion2ble ban
kers to treat their sanguine expec-
taUions as good security. That is
one of the elements which has built
up the feeling against New York that
finds such ready expression in this
Chamber.
One of the things which is looked
for from this bill, is that the people
of the country at large shall no long
er be subject to the tyranny that is
involved in having the owners of
money require some security other
than the expectation of success. One
of the things expected from this bill
is that the regional banks will be
more sympathetic, more appreciative
more responsive to the needs of
great areas of the country than the
bankers of New York have been.
The effect of that is going to be
that every member of the Federal
reserve board will come represent
ing a section of the country, and
everyone will have behind him
body of people whom by the terms of
his appointment he, to a certain de-
gree, represents, for where you have
a board created with reference to
sectional distribution, necessarily
there is a representation of sections.
Everyone will be under pressure
from the people of his section to use
his influence to turn the life stream
toward his own home to encourage
and increase the prosperity of bust
ness and to set on foot and to pros
ecute to success the great enterpris-
es which the spirit of his people
have organized; and everyone, in or
der to secure what his people de-
mand for his section, will have to
make concessions to his colleagueson
the board in regard to the things
that their people demand in their
sections, and you have the give-and-
take of sectional adjustme MT and
mutual concessions going en- there,
as it is to some extent going on in
Congress, but without the limita-
tations of experience and RESPONSE
bility to check it and keep it sub
ordinate as in these great councils
VI bhC 4NdIlOns OOy SAl, IL Will nave
to be more than ordinary human ma
ture that will enable this board to
stand against the constant pressure
for imitation that will be brought to
bear upon them"
We do not pretend to be an author
ity on financial matters but we pub
fish this statement for our readers
to remember and see whether or not
the senator has predicted correctly.