New-York tribune., 1918-08-18

DurR from the Federal Reserve
Il Board on August was widely
commented upon by the news
papers Of the larger cities of the coun-
try as a distinct and regrettable loss to
the Federal banking system. There is
universal recognition of valuable work
by the board, and some of the papers,
writing before the President made
known his decision to accept Mr.. War
pointment.
The correspondence between him and
the President, which was published on
Tuesday, shows that Warburg was will
ing to serve further on the board if the
President regarded it advisable. In the
following sentences from his letter he
put it squarely up to the President to
decide whether he was to go or stay:
"Whatever you may decide to be best for
the country will determine my future
course. We are at war, and l remain at
your orders"
His own judgment, however, was that
it would be better for him to quit the
board owing to his German birth and
the opposition to him upon that score,
which "migiIt precipitate a harmful
fight" "In t:1ese circumstances" he con-
tinued-
II deem it my duty to state to you myself
that it is my firm belief that the interests
of the country will best be served if my
name be not considered by you in this
connection.
II am frank to admit that have reached
this conclusion with the deepest regret, both
on account of its cause and its effect l
have considered it the greatest privilege
TO serve my country at this time, and I do
not abandon lightly work, half done, in
which am deeply and genuinely Interested
But my continuation in office under present
conditions might make the board target
of constant attack by unscrupuous or un-
reasoning people, and my concern to save
any embarrassment to you and to the board
in the accomplishment of its work would
make it difficult for me to conserve that
independence of mind and freedom of ac-
tion without which nobody can do justice
10 himself OF this Office"
The President in his reply to Mr..
Warburg praised his "great ability and
unselfish devotion to the public service"
and added that his colleagues on the
board "have also felt that your counsel
has been indispensable in these first
formative years of the new system"
The President also pronounced the re-
tirement Of Warburg "a serious loss to
the public service" but he assigned no
other reason for agreeing to it than
this: 81 consent to it only because l
read between the lines of your generous
letter that you will yourself feel more at
ease if you are left free to serve in other
ways"
Of his letter to the President "The
New York World" says it 'is creditable
to his head and heart, and fifty rounds
out an honorable and useful public ca
reer." The paper says further: "Mr.
Warhurg is perhaps our greatest master
of the science of banking Much is due
to his skill and vision that his adopted
country has borne the strain Of the war
without financial disorganization." And
yet, in view Of his German birth, the
editor concludes: "Mr Warburg is JUS
titled in wishing, for patriotic reasons,
TO escape bitter Senate debate over his
reappointment. His work will endure"
The Tribune also thought that the let
ter did "high credit to his spirit and
delicacy of feeling 1t pointed to one
of Mr.. Warburg's public services in the
following words:
"In bold and uncompromising terms, sec
onding those of the President, Mr.. War
burg has set forth the inevitable evils
which have ensued and must ensue from
an unrestricted expansion of bank credit.
His last distinguished public service was
to describe in a letter to the Senate the
evils that would befall the country if we
were to make the billions upon billions of
Liberty bonds now and to be issued even
temporary legal tender"
"The New York Times" also consid-
cred it characteristic of Mr.. Warburg's
fneness of feeling that he relieved the
President of embarrassment" and con-
cluded thus:
"There are regrets for his retirement
but there compensations, to him as
we'll as to- the country. 1t is rare indeed
that a is so complmented upon his
retirement, and it is so rare because the
quality of the service done is rare
"The New York Evening Post" says
that his retirement "directs attention to
the very distinguished and valuable ser