The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1914-05-07
|OLNEY TELLS WHY
He REFUSED POST
AT HEAD OF BANKS
Trusts of Personal Ma
ture Cannot Be
Given Up.
MAY BE HOUSTON
MAY BE HOUSTON
President, However, Will
Try to Find New England
Man in Olney's Place.

lglven today by the reserve bank or
ganization committee that expedition
will be required in effecting the or
ganization of the reserve bank com
mittee. Not later than May it will
designate five banks in each reserve
district to execute the organization
certificate, provided for by law. 1t
will facilitate the Incorporation of
reserve banks and representatives of
the five banks designated will meet
in the reserve city, of their district
as soon as practicable. This done,
the subscribing banks will become
member banks and Will Immediately
select electors, who in turn will
choose the directors of the reserve
banks. The organization committee
will divide the member banks of each
district into groups, the banks in each
being of similar financial strength.
Two of these groups will be fixed by
the organization committee and the
third by the federal reserve bank
when organized.
Washington, d. C.-The president
today received Richard Olney's letter
in which the former secretary of state
declined the appointment as governor
|of thel federal reserve bank board.
Olney's letter, dater Boston, May 4 !.
follows:
My Dear Mr.. President
II feel honored beyond words by
your letter of the thirtieth ultimo-
by the important offer and by the
friendly expressions of confidence
which accompany the offer:
But the act of congress which
very properly requires each men Der
|of the federal reserve board to give
his entire time to his work, is an in
superable obstacle to my acceptance
lof the offer. In the course of a long
life, have in various instances as
sumed duties and undertaken trusts
which from their personal nature
could not be delegated to others.
IF the conclusion ] have come to
is disappointment to you, l greatly
regret it. But you can hardly be
more sorry than am, that l am able
to do so little in aid of an adminis-
tration whose first year of achieve
ment makes it one of the most mo-
table the country has ever known.
Trusting you will not suffer your
health and strength to be impaired by
the strain of the unusual difficulties
now attending the duties of your
office, / am sincerely yours,
Richard Olney."
Think Houston May Get Place.
Many administration officials were
disposed to believe that Secretary
Houston of the department of agri-
culture, would be the man finally
chosen in Mr.. Olney's place. 1t is an
open secret that the President has
wanted to appoint Mr.. Houston to the
federal reserve board, but did not
wish to make any changes in his
cabinet. Mr. Houston favorablJ- inn
pressed those who came in contract
with him, when he toured the coun-
try as member of the organization
committee of the federal reserve
board and his name was suggested
for the board then.
1t is known that since Mr.. Oincy's
declination the President has not fix
ed on anyone, but is looking over the
field for another member of the
board. He is said to be anxious to
get New England man, so that all
sections may be represented. Col
onel William CASTOR and 10 ;eph
O'Neill, both prominent Boston
bankers, have been suggested as pos
sibilities for the board, but it j. be-
lieved the President will choose
business man with legal training.
The other four members of the
board selected by the President are:
Paul M. Warburg, of New York; DR..
Adolph Casper Miller, of San Fran
cisco; Harry A. Wheeler, of Chicago
and w. p. G. Harding, of Birming-
ham, Ala.
Never has a slate been guarded
with greater secrecy-not even in the
case of the selection of the Wilson
cabinet-than was the one pertain
ing to the makeup of the governing
board of the banking organization,
which is to revolutionize the cur
rency system of the United States.
Wilson's Personal Choice.
Politicians have had mighty little
to do with it which may account for
the surprises when the list was un-
Officially, but, nevertheless, authors
|tatiyely, announced.
The president, however, took this
reserve board matter entirely into
his own hands and made his selec-
tions on his own judgment of the
men, practically without consultation
with senators or others who make it
incumbent on themselves to lookvaf-
ter the interests of their constitu-
ents in affairs of public appointment
as we'll as legislation.
The names before the President oh
recommendation have numbered
about $50. Early in the season, fol-
lowing the passage and signing Of
the currency act, the President an
nounced significally that he would
not appoint ANYONE who is candi-