New-York tribune., 1918-03-19
War Finance
Bill Attacked
As Autocratic
Too Much Power for a Few,
Says Representative
McF adden
Calls Reserve Bank
Only Real Remedy
Says Bill Wouldn't Be
Needed if All Joined
Federal System
[Staf Correspondencel

banks in the country were in the Fed
eral Reserve system, Representative
Louis T. McFadden, of Pennsylvania,
declared to-day, in opposing the cor
2oraton finance bill, there would be
no necessity for the measure. He de
clared the bill still contained "unheard
OF powers" and concentrated power in
the hands of a few He attacked Wig
orously the imitation dangers of the
measure.
The American people are largely
responsible for the present condition
which prompts the suggestion of such
legislation as is now proposed by this
measure said Mr.. McFadden.
LAS individuals we have been thrift
less in cur public duties and exac
tons. We have been content to go
along from time to time in q false
sense of security and have been waste
full, with no regard for the future.
The future has now arrived. and we
are about to see the folly of the past
Thrift the Nations Necessity
Thrift is now national necessity,
and the quicker the American people
realize that the quicker will the war be-
won. Our production must be in
creased, but we are taking increased
production and asking people to econo-
mize, but no tax is levied on over
consumption The great losses occas-
ioned by this war, such as loss Of prop
crty, productive power and disorgani-
zation Of business, can only be met by
thrift and conservation of our remain
ing resources and by more efficient
methods in all lines and vocations, in
cludine operation of the government,
and our war machine.
81 have seen no proof as yet that the
paper to be issued by this proposed
war finance corporation and made eligi-
BILE for rediscount with the Federal Re-
serve banks would be different kind
of paper than would be created by
broadening the basis Of eligible paper
TO include outstanding corporate Sc
cuYities, except the fact that the
United States Will subscribe 100000,
coo to the stock of the corporation.
II contend that the main source Of
relief lies solely in the Federal Reserve
banks, which will continue to carry the
burden of relief supposed to be afford
ed by this new corporation.
THE operation of this new system
will be to clog the Federal Reserve
system. The enacting of this lcgisla-
ton means that the Federal Reserve
system has failed to stand the very
tes. that its advocates said it vas in
tended to serve, and would serve, aad
tfc men who were the most responsibl e
/ for the enacting OF the Federal Re-
serve law, which law bears their names
Owen -Glass-and who are still chair
men OF the Banking and Currency
committees of the Senate and House
are both fearful of this legislation and
the resulting effect it will have on the
Federal Reserve System.
Powers in Hands Of Five Men
"This bill as drawn still has in it
unheard-of powers, and places those
rowers in the hands of live men, .
majority Of whom | feel satisfied are
row overhurdened with other govern
mental responsibilities and duties. bat
will be named to serve upon this board
to further concentrate the power and
control in the hands cf few. Oh
YOU Pui o investigation OF the money
trust-where are you now?
"a great deal of our present trouble
is due to the enforcement during the
last few years of the Sherman law, the
creation of the Interstate Commerce
Commission and their narrow vision
of the needs of the railroads, looking
to the future and the failure to make
the railroads make the necessary
economies and Civ them an increase
CT rates which would have permitted
tie railroads to meet TIE demands
rpon them occasio, cd by thu growth of
our industries and the country gener-
ally.
"T'he creation and almost similar &C
tion Of the Public Service commissions
in the various states, to say nothing as
regards price-fXing by the governmel.
/ Of so per cent of their requirements IS
for extensions and betterements, have
affected seriously the public utilities
Of the country
Appeals by Railroads
The railroads, with capitalization
Of nearly SIT 900, 900 900, and the pub
lie utilities, with over $10,000,000 900
( capitalization, form a most vital part
of the wealth at this time and should
now be a source of great strength, but
are b9ti. appealing for aid from our
! already uvcrburdencd government, due
almost ertirely to the reasons | have
lust given.
"Now. in addition 10 this. the savings
hanks. state banks and trust companies
are appealing. fearing Withdrawals be-
cause of tire fact thac tie United States
is monopolizing the MONEY market in
the sale OF Liberty bonds 20 bear an
increasing rate Of interest. Ny answer
to these institutions is, Come into the
Federal Reserve system and help this
system carry this burden which is upon
them.
"'But,' they say. we do not like the
management of the Federal Reserve
system. We do not like the Controller
of the Currency and his attitude toward
the member banks.
II say to such, it is your patriotic
duty to join this system, and if the
officers of the system fail to function
properly public opinion will be SO
strong against them that they viii be
removed II al the banks were Under
! this Federal Reserve system now no
/ legislation of this kind would be here"
Calls Powers Great
"The powers to be invested in the