The sun., 1919-03-25
ENTHUSIASTICALLY
J. NAMED, SAYS GLASS
Secretary Answers, McFadden
With Asperity on Comp
tr0ller's Status.
OPINIONS ARE PRODUCED
Right to Servo as Ex-Officio
Officer Of Reserve Board
Also Upheld.
Special DssposcA 10 Tn. sux.

WASHINGTON. March ei.-fn reply TO
the questions raised by Representative
McFadden. (Pa.) as to the legality Of
the continuance IN once Of John Shelton
Secretary Glass made public to-day the
legal authority on which he acted.
The designation OF Mr.. williams to
continue until his successor was named
was predicated. the Secretary said. upon
the act OF Congress. passed March Q,
1895. which provided that the Secretary
of the Treasury could continue In ONCE
sell officers OF the Treasury Department
until their successors qualified. He
pointed out that this act was construed
BY Acknowledgement Moody In 1905 to
include all officers Of the Treasury De-
partment
In Mr.. w,lliams's case the Secretary
was advised by W. w. Warwick. Comm
'stroner Of the Treasury. and by NJ, G.
Elliott, counsel for the Federal Reserve
Board, Attorney-Genera Palmer con-
cured in their opinions.
.ciass's letter to Mcr.dden.
All legal aspects OF the case from
the Treasury DEPARTMENTS viewpoint
are, set out In the following letter from
secretar ~ Glass to Mr.. McFadden:
ct have your letter OF March II con-
'eerning the designation by me of John
"of Comptroller Of the Currency pending
tho appointment by the, President and
confirmation the Senate OF his guc-
cessor and am pleased to observe the
oniissionsfrWn your second letter OF the
surprisingly offensive implca tons and
sccusa tons which appeared in the letter
of March II. which felt obliged to re-
= turn TO you.
81, note. now that you desire to know
by what authority the Secretary of the
Treasury has given John Shelton Will
hams recess appointment as Comp
trolIer OF the Currency following the fall
ure OF the President to make such ap-
pointment.' The simple facts are that
the term of the Comptroller OF the Cur
rency having expired. and a contest over
ing developed. the Secretary OF the
Treasury in order that the activities of
the office might not be suspended. des-
ignated Mr Williams to continue TO ad-
the Currency Mt the salary provided by
law until the Senate shall have acted up
on your denomination by. the President
or until your successor shall have been
appointed and confirmed
This action by the Secretary was
based on an act of Congress passed
That the Secretary Of the Treas.
q ury be and he Is hereby authorized
"a. and directed to pay to all officers
under the Treasury Department
whose terms Of Office have expired
or shall expire before the appoint
oessors and who have been per-
forming or shall perform the duties
OF their respective offices after the
date Of suf.. expiration the salary.
nuthorisedr .<a provided by law In ]
=. zach case for tho respective incum-
bents OF the Offices
An Interpretation OF this. statute Is
Ia I'D ip op inlo 30
General william Moodv dntad June 81,
1905, in which Il was held that:
Congress has expressly provided
In the acts OF March 2, 1895 (2S Stat.
sos, SAD for the continuance In Office
of all officers under the Treasury De-
partment after the date Of the expi-
ration OF their terms OF Office and be-
fore the appointment and qualihca-
ton OF their SUCCESSORS and also for
the waving OF the requirement Of
e new bond during that period in the
discretion Of the officers whose duty
II is to take and approve such bonds
Furthermore, to be sure hat I had
full legal sanction of my action I sub
mitted the matter to Judge w. W. War
wick Comptroller of the Treasury. who
advised me that my designation of Mr..
Williams to administer the ONCE OF the
Comptroller OF the Currency is in ac-
Cord with law and I am OF the opinion
that you may permit him to continue
20 exercise the duties Of the ONCE and
that no will be entitled to receive the
salary thereof until the President other
wise directa'
Right to Serve ON Reserve Board.
The right Of Mr.. williams to act as
IN ex-officio oficey Of the Federal Re-
serve Board Is sustained in an opinion
rendered By n. c. Elliott general coun-
eel OF the board. on February 8. 1914
who after quoting the statutes and thu
.epInion OF Attorney-General Moody. said
e., "Under this opinion OF the At
torney-General the Comptroller may
continue In off1ce after the expiration
OF his term and until his successor
10 appointed So long as he continues
IN ONCE as Comptroller and receives
compensation as such from the Treas
ury Department he remains ex-officio
q member of the Federal Reserve
Board and in tho opinion of this office
80. clearly entitled to receive that
part OF his salary which - paid
by the board
g" Therefore, with these legal opinions
as q basis for action the Secretary of
the Treasury feels thoroughly we'll salts
ned that he has exercised an unques-
tionable legal authority In designating
Mr., williams to continue IN tho Office
OF the Comptroller Of the Currency until
htt@r -the appointmsnt-ard qualification
OF his successor"