New-York tribune., 1919-09-11

period in world finance and trade is be-
ing impeded by the mad terrorist"
tactics Of John Shelton Williams, Con-
troller Of the Currency Representa-
tive McFadden, Of Pennsylvania. de-
clared in the House to-day.
LAT this time, when the United
States is expected to play vital part
in the resuscitation of Europe" said
Representative McFadden, land when
our exigencies in the matter of read
Justment and reconstruction can
scarcely be comprehended, even by the
collective mind of Congress, there
should be hearty cooperation among all
factors in our financial world.
"But Mr. Williams, intrenched and
possessed Of the implements of sabot-
age which national bankers most dread,
terror in the field of state banks and
trust companies, and more than all
other men and influences combined has
been an obstacle to the uniiication of
our monetary system.
Only First Step Taken
"When Congress passed the Federal
Reserve act it took only the first step
toward the formation of a genuine ma
tional banking system. Coordination
with institutions chartered by the
states was essential to its proper and
full development, but it has been de-
layed, largely as a result of the Con-
troller's extremely bureaucratic meth
DDS and his savage and irreconcllable
personality. predict that when Mr..
Williams retires the movement TO con
solidate and unity will proceed rapidly
and we will soon have the ideal system
of the world"
As an example of Mr.. Williams's use
Of his power as Controller to crafty
personal ends, Mr.. McFadden declared
that the head Of New York bank, not
a member of the national system. qucs
toned the accuracy of statement by
the Controller which reflected upon the
relative safety of trust companies as
compared with national banks.
"What happened?" asked Representa-
tive McFadden. "The New York banker
was as viciously assailed as though he
had accused the Controller of stealing
the gold reserve in the Treasury vaults,
and this unwarranted onslaught, spread
broadcast throughout the country by
the Controllers agencies of publicity,
was followed by the withdrawal of $75.-
100000 Of deposits from the bank in
question.
"These funds had been deposited by
railroads. and Mr.. Williams, in his
capacity as chairman of the Finance
Division of the railroad admnistra-
tion, arbitrarily withdrew them and
own choosing not only as a punish
mcnt Of the institution because it's
president had dared to resent the Con-
troller's slur on the trust companies
Of the United States but as a warning
to other bankers not to crticise him,
no matter what the provocation
might be.
"The sense of outrage throughout
financial and business circles caused
by the Controllers action was so great
that unsolicited fresh deposits poured
into the institution from every quarter,
exceeding the funds withdrawn, stu
pendous as the sum was
"We have heard the President COM
pliment the Controller on his subju-
cation of Wall Street. l challenge
him to point to a single improvement
or reform, and if he is able will show
half dozen instances where he has
closed his eyes to alleged iniquities
or abuses which he proclaimed he was
engaged in uprooting.
He makes boast of having put an
end to the failures of national banks.
But during the first four years of his
administration there were fifty eight
failures, against only thirty-six in the
previous four years.
Now in n Controversy
Fright now, in the First and Ninth
Federal Reserve Districts, he is en-
gagged in controversy over the chart
ering of more banks in localities where
banks are not needed and in many
cases where the State Banking De-
partment has refused to grant charters
THE Controller has developed from
staggering autocrat into g mad ter
rorist. His rule is a tyranny which has
no counterpart in the monarches of
Europe, and affords a shining example
of the autocratic spirit which has
grown up in the executive branch of
our government. He assumes to be the
master, not the servant. of the people
For banks to protest against favor
tism and arbitrary and anomalous
use of public funds is to invite attacks
by the Controller, and he has made
examples of enough of them to in
timidate practically all. For bankers,
being the custodians of other peoples
money, are proverbially timid about
incurring the hostility of an official
who, under the law, has supervision
of their institutions. Many a banker,
could he divcst himself of his response
bility to his depositors, would unhesi-
tatingly have asserted his manhood
when unjustly assailed by the Con-
trollcr
Because l asked for an investigation
Of his Office in the last session Of Con-
gress the Controller entered upon a
plan of persecution Of the bank Of
ruined it had not the United States
Court Of the Middle District of Penn
sylvania intervened and restrained him
from further efforts to Indorm inc il "