Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1914-07-08
WILSON DEFENDS
BOARD NOMINEE


members of the committee are not
so much interested in the American
connections of Mr.. Warburs as with
any interest he may have in foreign
banking houses and in his foreign in
vestments.
Hitchcock Explains Questioning.
Senator Hitchcock also issued a
statement.
Some criticism has been made be-
cause the committee did not invite
others nominated for membership In
the board by the President to come
before IT," said he This, however,
is not true. 1t invited Mr.. Jones. He
responded promptly and answered all
questions fully and frankly. 1t Sc
cured a written statement from MI.
Harding. which was deemed ample
and satisfactory. 1t had equally
complete information concerning MI.
Miller and Mr.. Hamlin.
Mr. Warburg. therefore, has not
been Disseminated against IN any
way in being asked to meet with the
committee and give ii information
The committee desired to act intelll-
gently and felt that its duties were
not merely perfuetory."
With three members of the reserve
board, Charles S. Hamlin, W. 2. q.
Harding and A. c. Miller, confirmed,
the board must soon come into actual
existence. as the act creating it pro
yides that members must take the
oath and qualify within fifteen days
after notice of appointment. These
three active members of the board,
together with the comptroller of the
currency and the secretary of the
treasury, give the necessary I'VE
votes out of the total of seven re-
quired to pass any measure through
the board.
Prefer to Wait.
It is known that the three mem
bers already confirmed and that the
secretary of the treasury and comp
troller of the currency, who are ex-
officio members. prefer to wait, IL
possible, until the complete board is
named before rushing through or
ganization plans Several experts
have been called upon to outline the
steps necessary to create the federal
reserve banks in a satisfactory and
speedy manner.
These reports are ready for the
consideration of the new board as
soon as 1t is convened. The designa-
tion of one of the members of the
board as governor and another as
governor, will devolve upon
President Wilson.
1t probably will be three weeks
before all returns are in from the
election now in progress to select di-
rectors of the various federal reserve
banks. The banks are selecting four,
and the federal reserve board must
select two directors for each federal
reserve bank.
One of the early duties of the new
board will be the consideration of
complaints from cities which feel
they should have been granted fed
eral reserve bank. New Orleans
Baltimore and Pittsburgh have indi-
Gated their purpose to representations
Immediately.
Federal Advisory Council.
Indications are now that prominent
bankers throughout the country re-
gard the federal advisory council
provided for by the act as far more
important body than is generally I'M
derstood. The council is to consist
of one member from each federal re-
serve district. selected by the direc-
tors OF the federal reserve bank in
that district and is to meet at least
four times a year in Washington and
oftener. if called by the federal re-
serve board The council may also
hold additional meetings wherever
It sees fit. 1t is to select its own Off
GERS and adopt its own method of
procedure.
1t is provided in the act that the
council shall confer with the federal
reserve board on general conditions
and may call for information and
make recommendations in regard to
discount rates, re-discount business,
note issue reserve conditions and the
general affairs of the banking system.
A majority OF the members of the
council is to constitute a quorum.
While the powers of the council are
purely advisory, it is believed by
many bankers that members upon it
will be nearly as important as MEM
bership on the federal reserve board.
The council will have only twelve
members. one for each federal reserve
bank, and its members will be in
such close touch with the affairs of
their districts, as we'll as affairs of
the federal reserve board at Wash
ington, that much depends on the
character of men named for the coun-
Gil. They will be 60 betweens who
will keep the board posted on condi-
tons throughout the United States
and their recommendations will be of
vital Importance to the board