The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-05-06
The Administration of the New
Banking system.

ndhAluk SyStch.
Considering the difficulty Of the duty
dovolved upon him and the political
circumstances with which he had to
deal President WILSON has done better
than was expected Of his selections for
mombership in the first Federal Re-
serve Board. II the announced list Of
probable members does not in all re-
spects inspire enthusiasm it is never
theless a list which must fail to excite
dismay.
There had To he something tentative
In the choice OF the initial administra-
tors Of the new banking system, and the
prospective personnel of the Federal
Reserve Board offers encoura cement to
hope for the successful inauguration Of
a novel aud momentous departure In
American finance. The fact that PAUL
NJ. wARBURa Is 10 be n member Of the
hoard Is gratifying TO the last degree.
although his designation sharpens the
edge Of anxious curiosity respecting
others who are to he his colleagues.
The hoard will be the most powerful
body in the country in all that most
intimately affects the material concerns
Of the American people.
The auspices under which currency
legislation was enacted last year pro-
voked a degree of apprehension as 10
the political purposes which might per-
vert administration Of the law. Some
Of the terms Of the very act itself per
NIT a construction wholly Incompatible
with an intent solely to equip the
country's trade and industrial organi-
xation with financial facilities suited to
is requirements and approved by mod
ern economic experience.
Nor have the Vaccinations Of the
reserve bank organization committee
Federal Reserve Board would be con-
stituted in accordance with the obvious
banking needs resulting from the stat.
utory revolution In the fiscal system Of
The American people. The reserve dis
trict gerrymander by the organization
committee disturbed the banking and
business community. and the disturb
ance was rendered all the greater by
tho indications that the two principal
members Of the committee, JOHN SKEL-
TON WILLIAMS, Comptroller Of the Cur
rency, and WILLIAM G. McADoo. Secre-
tAry Of the Treasury, counted on the
control Of a majority of the Federal
Reserve Board. OF which they will be
ex officlo members.
Even SO strong Il man as Mr.. WAR
Reserve Board what it ought to be-
Doubt is justitiable If the point of view
with which Mr.. WARBURG will approach
his task bears any striking resemblance
20 the point of view OF Comptroller
WILLIAMS and Secretary McADoo. II
a majority of the appointees to the
board should look at their work from
the Williams McAdoo angle II most I'M
fortunate situation might be produced.
The Presidents selections will there
fore he scanned with the closest scru
tiny To see IL they designate for the
most part men who are likely to ad.
minister the new banking system for
the vlndicatiOn of political theory
and in the effort to establish fantastic
conceptions of credit.
II there is no change in the compost.
ton of the board as now announced II
would seem that the Federal reserve
system has u fair chance OF a propl
tlous beginning, Mr.. OLNfY has de
clined 10 serve. because of his age but
his Official and professional record would
have qualified him eXcellently. ADoLPH
c. MILLER Of Berkeley, cal. although a
radical economic theori>t in his AGA.
demic days, Is described by those who
know him as n straight thinker and
lucid reasoner. HAIRY \ WultItR II
Chicago has Won Il reputation for err.
nest honesty In his active efforts 10
bring large banking and business en-.
terprse into desirable Popular con.
facts. W T. q. HARDING Of BirminR.