Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-07-28
SENATOR OWEN REPLIES
TO NEW YORK BANKERS
Denies Right of Financial Men
to Control Federal Re-
serve Board.

A reply to New York bankers who have
suggested that the federal reserve board
proposed in the administration currency
bill should be controlled by the banks
and not by the government, has been
made public by Senator Owen, chairman
Of the Senate banking and currency COM
mittee. Mr.. Owens statement is contain
ed in a letter to Joseph T. Talbert, vice
president of the National City Bank Of
New York. The Owen letter is intended
public letter recently sent by Mr.. Talbert
to Senator Owen.
Senator Owens letter says, in part:
The bankers have no more right to
ask to take charge of the government
functions of the United States proposed
to be exercised by the federal reserve
board than the railroads would have
commerce commission, which is intended
to regulate them in the interest of public
justice. The bankers have no more right
to ask control of the federal reserve board
than the beef packers of Chicago to de-
mand the right to administer the pure
food act. which is intended to regulate
beef packing i'm the public interest,"
Senator Owen declared that the plea for
bank-cOntrolled reserve system was
contrary to common sense and would viO-
late the experience of England France
and Germany.
Established for Public Interest.
These reserve banks" he said, ARE
not created to enable you to make more
money, but are established to safeguard
the commerce and industry, including the
banks. of the people of the United States
and to put an end to the periodic sinister
ayn nci0 nd nfrac fin nf re laa IL
ing to the so-called bull markets and
bear markets. in which banks like your
own have been used as means of pro-
noting private interests at the public
expense"
Mr.. Talbert wrote that he anticipated
that such a federal board as the bill
would create would be dominated by pol
itics. Senator Owen said this was not
true. The reserve board, he said, should
no more be stigmatized by the epithet
Court. whose members are also political
appointees."
Continuing his reply to Mr.. Talbert, the
Oklahoma senator said:
You ask me. Is there wisdom or safe
ty in placing such power in the hands OF
a board of seven individuals having no
personal interest in the banks?'
Il ask YOU in return, Is there wisdom
or safety in leaving such power In the
hands of like number of bankers in
W
sonal responsibility to the people of the
United States, and who have demon
strated their inability Gf not their UNI
Willingness) to protect the stability OF the
commerce of the United States?
Greater Number Not Bankers.
The very fact that the federal reserve
board has no personal interest but acts
from governmental and altruistic stand
point in the interest of all of our people,
in the interest of every branch of COM
merce and industry of the United States
the banks especially included, is the best
answer to your objection. 1t is true there
are quite few thousands of bankers,
but there are 10000. 900 people under our
flag who are not bankers.
Your suggestion that because one OF
the 1000 member banks does not control
the federal reserve bank 1t would not
have any interest in contributing Is SIN
sularly unreasonable. What member
bank gets is the Immediate right to re-
discount it's liquid bills up to two-tnirds
OF the reserve deposited with the reserve
bank: and, in addition. other accommO-
dations by way of rediscountS in case OF
need, get currency always to supply It's
customers. and in addition, financial
roof over it's head and a financial founda-
ton under its feet that will prevent the
periodic destruction of banks by the cur
rency and credit panics which have swept
this country under the bad management
of the past"