New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-07-24
'OminOus Incident in Con-
nectiOn with New Bank
ing System Regretted.
PRESIDENTS FIRST
DEFEAT BY CONGRESS
Warburg Nomination Still Pend
ing. with White House Stand
ing Firm fer Confirmation.
From The rribun. Bureau .

Warrington. July % President
Wilson. defeated by Congress for the
first time. withdrew from the Senate
to-day tie nomination of Thomas y.
Jones. OF Chicago. to he a member Of
the Federal Reserve Board.
With the odds against him the
President did not yield altogether
with eQusnimity. His letter to Mr.
Jones, which was made public at inc
White House AZ the time the Senate
was apprised OF the withdrawal. dis
plays irritation and resentment. he
obviously lays the rejection OF NJ
Jones. whom he characterized as being
in pccul = sense his personal ap-
polntee. at the doors Of the minority
members Of the Banking and Currency
Committee and "the two members Of
the majority who have usually acted
with them" the latter being Senator'S
Reed and Hitchcock
81 can only hope" hc adds. "that
better, cooler and wiser counsels may
prevail"
The announcement Of the withdrawal
OF the Jones nomination came 10 the
Senate when it was in the thick Of ;he
fight. Senator Reed had sought 70
bolster up the opposition by .ong
speech. haying the International Hsr-
vester Company and crticising Mr..
Jones as one. of the directors. without
using his name. Before the speech
was ended the administration members
OF the Banking and Currency Com
mittee made their report. sbsol-inc
Mr.. Jones Of the charge OF violating
the Law as a director OF the compauv.
Wilson Message Ends Fight.
Three minutes later. while Sen1'or
Reed was speaking, Mr.. Tumulty. the
Presidents secretary, brought word 10
the Democratic leaders that Mr.
Jones's nomination would be with
drawn. Then came the message from
the W mite House.
The announcement ended fght
which has threatened to disrupt t1e
majority in the Senate, arousing mI,h
speculation over the probability Of
the disintcgration Of the ranks Of INC
Democrats and the further outbreak Of
revolts against the President.
Al the White House IT was said tho
Presidents action to-day did not IN
dicate that there had been any change
in his determination 10 insist upon the
confirmation Of Paul VI. Warburg.
whose nomination to the Reserve
Board also is being opposed. Nothing
has been heard from Mr.. Warburg IN
regard to his appearance before th"
banking committee. and Senator O'Gor-
man. who is understood TO have been
endeavoring TO persuade Mr. Narburc
20 change hls mind and accept the COM
rittoe's invitation. is not eXpccteI 10
return TO Washington until to-mor-
row
II is admitted that the sdmlnlStra-
tion's antitrust legislation will be
nushed through the Senate, but be
yond that it is doubtful II the Prcsl-
dent can hold Congress to any task
TO which he may chose 20 as
sign it. II the Presidents contcol
owe. the legislative branch OF the
government is not broken, it is, az
least seriously impaired; and much
doubt exists that he will be able. with
outlaws in his own party RANKS, 20
have his own way to the same exten,
a before.
Mr.. Jones to President.
Correspondence between the Presi-
dent and MIR. Jones was made public
st the White House to-day. Here is a
letter from Mr.. Jones. written to the
President on Monday:
81 have reached a definite conviction
that it is my duty 20 ask you TO with
draw my nomination as a member OF
the Federal Reserve Board You are
aware that | was IN no way whatever
an applicant for the Office. II was
with :he gravest reluctance that
agreed 10 accept the honorable but
heavy burdens Of that Office IN case nv
nomination were sent 10 the Senate
and confirmed by t.
81 did not then anticipate a protract-
ed and bitter contest. At the invita-
tion of the Committee on Banking and
Currency | willingly appeared before
il to answer any questions which they
might desire to ask Of me. and | en-
deavored to answer with entire frank
ness all the questions that were asked.
and my testimony was made public At
ny request.
"lt is not for me To surmiSc motives
or TO complain of results. That my
nomination and the controversy that
has arisen over II IN the Committee
on Banking and Currency IS seriously
embarrassing your administration and
is causing injury to the party of which