The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-10-31
To Safeguard Banking Interests
From Political Interference.

An ambitious programme OF Fed
cral Reserve act amendment is out
lined in the Washington dispatches.
Quite aside from the fact that Con
gress at the coming session will have
it's time engaged with too many sub
jects which are already pressing for
attention and may not have energy TO
spare for Il fight over the Federal Re
serve act. the amendment programme
seems hardly possible of accomplish
ment under the present .Adminlstra-
lions control Of Congress.
The administration itself has II
large responsibility for IN of the
Federal Reserve features which 1t is
most desirable TO change. The actlvi-
ties Of Secretary MC.Apoo while bank
ing and currency legislation was pend
ing In 1913 resulted in certain pro-
visions which the proposed amend.
ments specifically contemplate. The
amendments in question must come in
time, however, for they are unqnes-
ll'iilliN III ar iiShN NV fii
will command the wide approval Of
intelligent business" men. to say moth.
Ing of the banking community.
This i particularly true of the need
~ altering the sections of the act
which give the Treasury Department.
excessive influence in the Federal Re-
serve system. The present Federal Re
serve Board has conducted Itself al.
mirably on the whole. but the board
is a sufficiently political body In re-.
gard to it, ey oficio and Presidential
apTointee membership. 1t is danger
Gus TO have the future of the Federal
Reserve system subject To the eNces'
slve pressure of a political character
which may he brought Ia bear through
the unnecessary powers which the
Treasury contingent in the board pos
$50
IL was provided in the House cur-
rency hill in 1919 that Government
funds should he deposited in the Fed
eral Reserve banks. The whole pros.
pectus of Democratic promise on this
score permitted the superstition that
The Treasury would be removed as an
interfering agent in the banking stu
alton. The House provisions relative
TO Government funds We're altered in
The Senate AMI the Senate changes
stood in the bill on final passage.
Already the use which Secretary
MCADoo has made Of his control Owe
Government deposits indicates clearly
those which now obtain, the banking
policy OF the Federal Reserve Board
might he swayed by the political policy
OF the Treasury. Should there come
n time when the Treasury WAS pos
sessel Of ample funds while the banks
Of the country were well loane1 M
and the of the Federal Re
serve banks were extended. n situation
would exist which won,d offer large
opportunities TO n designing finance
minister,
~ ~ hF w ''''
ment funds Is c~onccTncd il cannot be
pretended that the Secretary Of the
Treasury is to be preferred to the Fed
eral Reserve Board. The board l.
strictly a Government commission, ahd
in it's employment Of Governments Il"
posts the public money would be sur
r,undej with every safeguard and bt
protected by every security.
Thai the office Of The tomptr roller OF
the Currency should be abolished is thu
most obvious fact about the Fedora
Reserve act, which continued this en-
tlrely superfuous fu~rc'ionary. with
out prejudice to the present lncnm
bent, no usefulness or service OF valn'
cnn he dcmonst rated for the ofii''
which could not be better performed