The Richmond Virginian. (Richmond, Va.) 1910-1920, 1914-10-15

on the com position OF the federal re-
serve board. how he had believed The
president wrong in holding tnat
member banks should not have
minority representation on the board
He told OF visit To Washington by
bankers of tae Middle West, me
Pacific coast and the South, and OF
their conference With Mr.. Wilson u
the White House, in which the pFesl-
dent had convinced him. II not. the
bankers, that private interests have
no place on any government board
supervising such interests He paid
tribute TO President Wilson ar 1iis
stage Of the address. and again later,
In speaking of the powers OF the
federal reserve board. MIR. Glass point
ed to the much overlooked fact tnat
those same powers. which have lately
brought forth objections have been
possessed by treasury officials since
the beginning OF the national bank
law operation fifty years ago.
The power to suspend all reserve
requirements for period OF thirty
days and to renew the suspension for
a period of fifteen days, given the re-
serve board" he declared, has been
possessed by the comptroller of the
currency fer fifty years. Now he di-
vides this power with six others"
The power to withdraw government
deposits from all banks and place
them in one, 70 depiete the government
funds on deposit in banks. he also
showed has been possessed by the
secretary of the treasury alone. for
Atty years.
Your president said today that such
extraordinary power and discretion is
repugnant to republican institutions.
The wonder Is why 1t has not been
found out long ago" He cited the
removing of s4S,e0e,0p from wash
ington to New York city by the sec
rotary of the treasury TO save the
situation when panic threatened.
Nothing was heard then that 1t was
a power repugnant to republican In
stitutions'" he declared.
Mr.. Glass replied to the assertion
that the reserve bank notes will be
nat money by declaring that 1t relies.
for its value upon reserve OF 40 per
cent gold and 100 per cent short time
commercial paper.
Reasonable Expansion Allowed.
Making reference to provisions Of
the act the speaker showed that in
stead Of either imitation or commercial
contraction. each OF which have been
declared by bankers holding widely
different views. the law provides for a
reasonable amount of expansion. based
on the requirements OF commerce and
industry
The criticism that banks were not
consulted while the act was In prepa-
ration was answered with the state
ment that the greatest bankers and
all interests of the country were heard.
All information that could be secured
and every suggestion that was made
was given consideration.
'ln my judgment" said MIR. Glass,
the federal reserve act Is iegisla-
tive miracle. and in all sincerity !
want to say that the man who de-
serves supreme credit ia he president
of the United States. Woodrow will
son. 1t was wrought by supreme pa
thence. unexcelled patriotism and
courage. not excelied by any man.
The president was passionate In his
anxiety to serve the people and he
could not be swerved from his path
of duty. To the president the credit
belongs. II you knew what has been
kept out of the act you would appre-
ciate more what 10 In It."
Mr. Glass turned his attention Tor
a time. In closing his address. TO the
effort that has been made to have the
government buy cotton In order to
guarantee the price Of = commercial
product. He declared that he was OPP
posed to such action. He said he has
ben upbraided and reproached by his
colleagues for being unwilling to take
part in putting q heavy burden on the
people. He declared his attitude to-
ward the proposition that the govern
ment buy tobacco 10 the same. despite