Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1916-04-14
FEDERAL RESERVE
NO PANIC-QUELLER
Extravagant D e m ocr a t i C
Claims Shown Fallacious by
Republican Bureau

Washington, D. c.. April IA. - Dis
putting the repeated claim of Demo-
catic leaders that the Federal Reserve
system had saved the finances of the
country during the threatened panic
Immediately following the outbreak
of the European war, the Republican
Publicity Association, through its
president, Jonathan Bourne, Jr, has
issued the following statement at it's
headquarters here:
Although the Federal Reserve act
was passed in December, 1918, the
Federal Reserve System had not been
placed in operation at the time of the
outbreak of the war, July 81, 1914.
This fact is stated by Secretary of the
Treasury McAdoo. in his annual re-
port for the fiscal year, 1914. After
expressing satisfaction over the man
ner in which business came through
that test, Mr.. McAdoo says:
This has been accomplished not
withstanding the fact that the Federal
Reserve System authorized by an act
of December 20, 1918, was at that
time only in process of formation and
was, therefore, unable TO render any
service in the situation.
THE financial relief afforded the
banks of the country was in the form
of emergency currency, issued and
distributed under the provisions of
what is commonly known as the
Aldrich-Vreeland Emergency Cur
rency act, enacted in 1908. The act
was continued in force, the only
change therein made by the Reserve
act being a small reduction in the rate
of taxes to be paid upon the emergency
currency.
In addition to thees facts regard
ing the manner in which a panic was
averted, it is also we'll to remind
Democratic speakers and writers that
the Federal Reserve act is not the
product exclusively of Democratic
craftsmanship, but was very largely
a result of work that had been done
by the Monetary Commission created
in 1908.
Without going into an extended
discussion of the influence of the work
of the Monetary Commission upon
the Federal Reserve act, brief quota
tions from the New York Times-a
paper not unfriendly to this admins
tration-will sum up the facts.
In an editorial on December "a
1913. the day after the enactment of
the Federal Reserve law, the Times
said that the National Monetary
Commission had fostered and develop
'u q publlt sentiment lbI currency
reform. In fact, the ground was
prepared by the commission for the
legislation that has Just been enacted.
and the Owen-GlasS bill contains some
Of the principal features of the Aid
rich bill, described in part in almost
the same language
Upon signing the bill. President
Wilson attempted to give credit
therefor to his party alone. ignoring
the fact that the bill in its original
form was faulty in the extreme. The
Times recognized the injustice of that
partisan claim, and on December 25,
1913. said:
Surveying the process from in
PRODUCTION to enactment, the result
was a fundamental transformation
of the bill. But for the continued,
powerful and effective influence of
public opinion we can hardly doubt
that the measure would have been so
faulty that its acceptance by the banks
would have been exceedingly doubt
full. its success improbable
I'm the administration of the law
the party in power has been not only
partisan, but Influenced by local in
terest. There is no disposition on the
part of Republicans to deny to the
Democratic Party any credit to which
it may be entitled for the enactment
of the Federal Reserve law, faulty
though its sponsors now admit il to
be- But, while conceding to the
Democratic administration any credit
to which it may be entitled in the en-
actment of the measure, Republicans
can very appropriately and justly
noint to the service produced by
Republicans"