Evening star., 1918-08-10

he been selected for the six or eight
year term when he was appointed IN
1914 he would have been continued
in office.
There was never a question about
his ability-he stands high in the es.
teem of the banking communities OF
this and other countries There was
never a question OF his loyalty-t the
President, the Secretary or tne
Tressnry and his colleagues all at
test to that fact
Victim of Circumstances.
But circumstances over which Mr.
warburg had no control-the hand
of fate-ruled MIN out of office today.
For in Germany one brother sits as a
financial adviser to the German gov
ernment and in Sweden another
brother represents the interests OF
the Hamburg banking firm OF war
burg Bros
tered the war the slightest conhec-
tion or communication between the
American and German ends OF the
Warburg family, but for many months
a prejudice and feeling on the SUB
ject has been growing up, based not
on anything personal. .hu put k,nsbin upon 'he
Some people felt that 1t was i'm.
proper to have high in the councils or
the American government man
whose brother was high in the coun-
ellis of the German government. 1t
was admitted<that Mr.. Warburg per-
sonally was loyal, that he was able
and eficient. that he had become a
naturalized American score OF years
ago and that his only son enlisted IN
the aviation strvice as soon as the
United States entered the war against
Germany.
but the prejudice and feeling never
theless existed. Some predicted that
If the President reappointed Mr.. War
burg there would be fight against
confirmation.
Puts Case to President.
Mr.. warpurg himself, with the same
dignity that characterized his attitude
four years ago when opposition to his
confirmation developed on purely
banking questions. refused to engage
in a public controversy or campaign to
retain his position Nor did he want,
however, to be placed in the position
of quitting the United States govern
ment, and especially the Federal Re-
serve Board, in so important time
as this.
So he put the situation up squarely
to the President in letter written
last May. He wanted to serve the
country of his choice, he wanted to do
whatever the President thought was
for the best interest of the country,
but at the same time he strongly ad-
vised that under the circumstances he
ought not to be reappointed.
The President made no answer until
desire to confer further with the Secre-
taiy OF the Treasury, who is away from
Washington. or whether 1t was due to
his inability to make a decision over
what was unquestionably one Of the
most ticklish problems ever put before
him is a matter of general conjecture.
But Mr.. Wilson in his letter spoke Of
Mr.. Warburg's departure as a serious
loss to the public service. He empha-
sized Mr.. Warburg's patriotism. Yet he
prefer t. turn his attention to other
lines of endeavor. So he accepted the
resignation.
disappointment Favored.
Members Of the Chicago Clearing
House, as well as the New York State
Bankers Association, had appealed to
tho President to retain Mr.. warburg.
Bankers in many parts of the coun-
try felt that the question of his re-
lationship to the German banking
firm OF Warburg Brothers was aca-
demic rather than practical, and that
il everybody in official Washington
had absolute faith in Mr.. Warburgs
loyalty and integrity, and his ability
was unquest;oned, they saw no reason
why the President should cater to an
emotional prejudice.
The Warburg Brothers are helping
the German government because they
are citizens Of Germany. By the same
opponents of the American Warburg,
the Berlin government ought long ago
to have dismissed the Hamburg
brothers because they had an Amer
lean relative in the Federal Reserve
Board Of the United States
dice, there never was any question
here as to the fidelity of Paul War
burg to his oath of allegiance to the
United States. He was on intimate
terms with Lord Reading, the British
ambassador.
His colleagues on the reserve board
say that in all their meetings there
never was any evidence of anything
but pro-American spirit.
Going Not obstructed.
me President himself refers to Mr.
Warburg's going as serious loss to
the public sarHics. The pity is that
placed before the American public,
so that. unpleasant as the publicity
might have been, the people could
have been able to judge for them
prtve themselves of a valued. coan-
selor In finance in times like these.
As IL Is, the matter was handled In
absolute secrecy until the day Mr..
warburg's term expired Now. though
he departs with a splendid record, he
must always face the fact that by
the Presidents decision he was not
reappointed.
Mr.. Warburg himself felt that the
mere existence of such a prejudice
would embarrass him in his decisions
on the board. But 1t would have been
far better, II the administration had
absolute faith in him, to have reap
pointed him and left it to public opin-
ion to say, through the Senate,
whether his kinship with the German
firm of Warburg Brothers was detri-
mental to the best interests of the
Uaitsd StstsA