Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1916-08-11
Editors Letter Box
The Federal Reserve Act.

Editor Kennebec Journal:
At a luncheon at the Detroit Athletic
Club on July 10th, President Wilson adj
dressed business men particularly and
among other things sold:
An act was recently passed in Con-
gress that some of the most intell-
gent business men of this country
earnestly OppoSed-men whom l knew,
men whose character | trusted. men
whose integrity l absolutely believed
in l refer to the Federal Reserve act
by which we intended and succeeded
in taking credit out of the control OF
a small number of banks and making
it available to everybody who had real
commercial assets and the very men
who opposed that act. and opposed IL
conscientiously, now admit that IT
saved the country from runous
panic when the stress of war came on
and that it is the salvation OF every
business man who is in the midst OF
the tides
The war to which the President refers
began very late in July, 1914, and on July
31st of that year, the Secretary OF the
Treasury made a public announcement In
which he expressly stated, THE Aldrlch-
Vreeland bill is still in force ana
under it's provision there are in the Treas
ury. printed and ready for issue, $5oo,oO,
600 in currency which the banks can gen
upon application under the law
Before October 31st of that year. he had
actually shipped 1868 ,55S, 900 of that cur
rency to various banks and there was
over $3.50 600, 900 Of it outstanding on that
date. In his annual report, dated De-
cember 7. 1914, after reciting these facts
and Justly claiming credit for averting a
manic he uses this language: This has
heen ACCOMPLISHED notwithstanding the
facts that the Federal Reserve System
was at that time only in process Of forma-
ton and was therefore unable 10 renoer
and service in the situation.
The first annual report or the Feoerai
Reserve Board bears date of January To-
1915, and contains this sentence, LESS
than two months have gone by since the
Federal Reserve Banks actually opened
for business" AS a matter OF fact the
entire system Of twelve Federal Reserve
banks had issued less than $3Wooo IN
Federal Reserve notes on December l, 1914
and at that time there was outstanding
over $3.50, OO0, 600 in emergency notes issued
under the provisions of the Aldrich-Nree-
land bill. Yet in the face or all THIS,
woodrow Wilson tells the business men of
Detroit. that those who opposed the Fed
eral Reserve act Now admit that it
saved the country from a ruinous panic
when the stress of war came on"
Does the President of the United States
of America seek to deceive the puonc OF
is he so obsessed that he is self-deceived
1t is bad enough to attempt to deceive
others, it is very bad when one succeeds
but it is worst Of all when one is self-de-
| ceiyed; for self-deception leads into many
inconceivable. inexplainable, incompre-
| hensible and irretractable positions. 1r
the very next paragraph Of the Presl'
dents speech he proceeds to draw from
| these facts, which as we have seen. ne
incorrectly states, this conclusion, $50
say the suspicion is beginning to dawn ir
many quarters that the average mar
knows the business necessities of the coun'
try lust as we'll as the extraordinar. mar
| does"
II these words are anything more thar
words,-if they have any significance
other than "1ub dub" the President Of
the United States wants to be under
stood as saying that the average man
without information, thought or consid
| GRAFTON, ana WHO OF necessity has Hoo
neither experience nor observation. Is
Just as competent to pass upon public
questions and their relations to business
as the extraordinary man, who has sup
plemented both experience and observa'
ton with years Of study and considera'
ition. As well might he say. that the av
erage man knows the requirements OF
successful farming as well as the extraor
binary man who has supplemented the
experience Of boyhood spent on fam
with course at an agricultural college
God grant that from and after March
1917, the American people may again be
blessed with a President Of the type o.
Harrison. Cleveland and Mckinley. who
never pettifogged an issue legal or polit'
ical.
The Aldrich-vreeland bill was Re
publican measure. passed for the tenn
porary purpose Of protecting the country
against panics until the Aldrich monetary
commission, which the bill created, could
make a report and permanent Legislation
could be affected. 1t was expressly de.
signed to meet conditions like those which
arose at the breaking out Of the war
The Aldrich commission reported In IA.