The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-01-06
NO Room for HOmunculi on the
Federal Reserve Hoard.

NO Room for HOmunculi on the
Federal Reserve Board.
II is set forth I'm the prea mble IN Tho
Federal reserve act that It is designed
not only to establish reserve banks. fur.
nish elastic currency and afford means
~ rediscounting commercial paper hut
tn provide "a more effective supervision
~ banking in the United States, and for
other purposes" Close and competent
study OF the measure leads to the con.
viction that II Is most successful in nc.
complishing the object stated last.
What the act really does Is to organ.
lie Government money trust Whether
or not there has ever been anything in
the United states even resembling such
q monster as money trust. the coun.
try is TO have henceforth a money trust
definite, complete and all embracing. as.
Stunning that the political purpose Of the
act is achieved. Possibly 1t may make
some difference that It is to he Gov.
eminent money trust. but there can be
no question what the new banking and
currency legislation seeks to create.
! The Federal reserve act embodies the
conception Of credit. the principal form
OF buying power to-day, as public util-
ity. however derived from Myriad pri.
waite sources: as something like electric
power, the use and dist ribution Of
which must he directed by Government.
but In this instance all familiar anal
ogies fail as to the relation between
Government and public utilities. The
Federal reserve act does more than es.
tablish supervision over banking I'm the
United States. 1t does more than prO.
vide regulation. IL organizes the fnan-
cial system Of the country In much the
same fashion as though the Interstate
Commerce Commission were to be
placed In direct charge and management
Of railrOad operations in all their
phases. II the objects Of the new legis.
lation are attained credit will be gov
ernmentally impoundsd in Government
institutions by coercive processes. and
its distribution will be Administered BY
the Government.
At the very heart and core Of this
new Government money trust Is the
Federal Reserve Board and this Is why
such tremendous interest attaches to
President WILSON'S discharge OF the
duty OF naming the members Of the
board which Congress has devolved
upon him. II the right men can DO
fnupI for thA nomoptnus 4. al ..hlch
will confront the board and II Presi.
dent WILSON seeks out only such men
the workings Of the Federal reserve act
will contribute to the progress Of Amer.
lean prosperity, hut the act In all its
workings will depend on the Federal
Reserve Board, especially on the nrst
board to be chosen. As Mr.. A. PIATr
ANDREW said recently:
"The Government committee known a.
the Federal Reserve Board IL the crux OF
the plan. Its powers are not limited to |
supervision and enforcement Of the law. |
Its powers are administrative and !ssisla-
tive. II II virtually expected 10 manage
the regional banks and TO II has really
been surrendered authority to frame the
Phis board Is TO exercise such powers a.
have never been exercised before over In |
dependent banks In any important coun-
try. so far as l know. In the worlds his |
tory. 1t Is to exercise powers which have
never been exercised by any banking
board over Its own business. 80 far a.
know, In this or any other country"
Subject as they will be to practically
only one legal restraint, the right Of the
President to remove them for cause,
what kind Of men are wanted for such
an undertaking Ms Is denoted by the
functions OF the Federal board?
Probably they need not bs bankers,
but they should be nuanciers In
the sense that all successful business
men are fnanciera and they should
have that knowledge OF banking
which such business men always &C.
quire, Whatever they are by trade or
occupation, they should be men accus.
toned to big things; to entertaining
large ideas and carrying them out; to
advising IN regard to them. They
should be capable Of thinking continent.
ally. They should have an intimate
knowledge Of tho American people and
Of American trade and industry. They
should have n grasp Of affairs 40 large
as their own notions Of tho boundlsss
beneIiccnt possibilities Of American do.
yeioplnent and destiny.
They should be men not only Of abil.
ity and men with record for sound