The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-06-09

lnterfered from the start in an attempt
to procure through Groups Q and 3 the
election OF directors to the reserve
bank board whose point Of view should
not he one Of sympathy with that COM
prehcnsion of large affairs which ought
to characterize every director Of the
New York reserve bank.
This bank Is to have n capital of
S2O.DO,0OO and deposits of S3OO,0OO,-
900. 1t is to be the biggest bank In the
country and the most important bnnk
I'm the Federal reserve system. 1t will
be the central agency of the country's
commercial clearing house already es-
tablished ut the country's financial CEN
tire. II will he. Furthermore, the bank
of foreign exchange operations at the
point where the bulk of the country's
foreign exchange business IL custoina-
rily transacted. This Is the bank which,
according to every indication. the Fed
eral reserve bank organization commit
tee IL endeavoring to prevent from com
ing under the management Of men con-
spicuously tit for the task.
TO one at all familiar with some of
the poisonous conceptions that per
vaded last years currency legislation
the conditions now presented in the
New York reserve district are not sur
prlsing. The reserve bank organiza-
ton committee is obviously trying to
insure that the control OF the New
York reserve bank shall not he such
financial control rs It Is properly en-
titled to have.
The anlmosity OF JOHN SHELTON
WILLIAMS. Comptroller OF the Cur
rency, toward New York finance needs
no advertisement. Secretary McADoos
attitude toward New York has been
adequately illustrated by his conduct in
his holdup of the subway extension.
These two men practically constitute
the reserve bank organization commit
tee, which by its regulations in the
matter of reserve bank elections has
sought to evoke class consciousness
among the smaller banks which would
lead them to reject nominees for direc-
tors Of the New York reserve bank
who were Mt all representative of the
large financial and business interests
OF the State. Bmissaries Of the organi-
cation committee have pervaded the
State and have encouraged all the
clamor about Wall Street intimidation
and coercion in order to promote candi-
dacies which would not ordinarily win
approval for remarkable eligibility.
Undoubtedly intriguing aspirants for
Office have been glad to take advantage
OF wnshington's Interference in the
New York election, but II there was
any other invitation to interfere 1t IL
not evident in conditions which have
heretofore obtained in the New York
State banking community. Nowhere
else In the country have there been
signs of the projection of Treasury De-
partment influences into the election OF
! reserve bank electors, but he would be
blind indeed who could not perceive
what Is going on in New York.
Talk of Wall Street coercion and in
timidation Of the member banks OF the
district with their unrestricted power
to vote as they please Is bosh. Even
If any pressure Of the kind could be
brought to bear It would be nothing to
the coeroive intimidation Of interposl-
ton by the Treasury Department.
There are few banks in the State which
would make cowardly surrender to
any pressure that Wall Street might
, bring to bear compared with the num-
Der of those that would be inclined 20
yield to limitations purporting to come
from the all powerful Secretary OF the
Treasury and the Comptroller OF the
Currency.
We hope, nevertheless. that the ma
jority Of New York bankers will see
clearly their duty and have the cour-
age to resist political endeavors to
guide their suffrage for members Of the
reserve bank directorate.
------------------