New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-10-09

ana COSLS Hi IloiiS' AH~S 40 oA
telligence.
Mr.. Wilson's ideas Of Wall Street
have been thoroughly McAdooed. He
thinks Wall Street once thought it
ran tho United States Treasury.
"Why, my fellow citizens" he said in
a Shadow Lawn speech, at even had
a desk in the Treasury Department"
Mr.. McAdoo decided to run the
Treasury himself, and, says Mr.. Will
son:
We have made shift to conduct the
Treasury Of the United States with
out their assistance. And 1t must
surprise them in their private
thoughts TO have to admit that 1t has
been better conducted than ever be-
fore in our generation-more success
fully as business administration and
infinitely more helpfully to the gen.
cral body of the American people.
Such assistance as the Treasury of
the United States can legitimately
extend in times OF financial stress
used always to be extended to Wall
Street. Now it is extended to the
country.
1t was no doubt shocking to see
the money deposited in country banks
and not In Wall Street, but the coun-
try banks knew how to use It, and
they were very much nearer the great
masses Of the people who need it
than were the great depositaries Of
financial resources in New York
would not have you consider me
prejudiced against New York City.
Why, gentlemen, the great City of
New York Is one Of the most vital
parts of the United States, but the
City Of New York does not consist of
the gentlemen in Wall Street And I
would have you understand that l am
very much prejudiced against them,
as they are against mo. No, not
prejudiced, but aware.
Mr.. Wilson is evidently unaware
that the deposits Of interior banks in
New York City, nay, even in Wall
Street, are enormously greater than
was ever the case before, and that
this will continue to be so until under
the Federal Reserve act the pyra-
miding of reserve money between
the interior and the reserve city bank
is stopped in 1917. Paul NJ. War
burg, Of the Federal Reserve Board,
in his recent Atlantic City speech,
said:
/ wish II had been possible TO
stamp out this evil within . short
time after the opening Of the Federal
Reserve system. As 1t is, many Of
the smaller banks are still in the
condition Of patient who knows
that he must undergo an operation
in order to be fully cured, but whose
mind every now and then rebels at
the thought, and who continually re-
lapses into arguing with himself that,
after all, he might possibly prefer to
continue to live with his disease and
take his chances Of the certain re-
currence of acute commissions and in
tense suffering rather than to have
the operation performed. The coun-
try, however. has decided that the
operation is necessary for our future
safety and growth, and tho vast ma
jority of our bankers are in full &C
cord that it is the wisest thing to do.
The pyramiding Of reserves will thus
end on November 1s, 1917. But as
said, wish the operation had already
been performed.
Reflect on the baseness Of ingrati-
tude? See how the country bankers
repay the trust reposed in them by
Mr.. McAdoo, the President and the
United States Treasury. They take
money direct from the government,
they write notes Of appreciation to
the Secretary, they are enthusiastic
patrons of the Federal Reserve Bank
System, and then they lend their bal
ances in Wall Street like regular
sinful financiers.