Evening star., 1920-11-26
us. RESERVE BOARD.
SUBJECT Of QUERIES
Financiers Ask What Change
New Administration Will
Make in System.
BY N. O. MESSENGER.

"Win the republican party. in the
new administration and Congress
undertake to remodel the Federal
Reserve Board?" fnanciers are ask
ing.
The question is prompted by the
fact that in the campaign the charge
was made by republicans that the
board as now constituted and oper-
ated had left undone those things
which it ought to have done. had
done those things which it ought not
to have done. and there was no
health in it.
The point is will the republicans.
having discovered these alleged
faults in the systen- under demo-
cratic regime. proceed to correct
power? And will the democrats,
who we're convinced of the sacrosanct
nature of the system while they were
operating it. see where it may need
revising when the republicans are to
take 1t over?
Which recalls the old McGuffey's
Fifth Reader story. that it makes a
lot of difference whose bull is being
gored."
The average citizen probably visions
the Federal Reserve Board as some
kind of mysterious monetary deity
WAlCu COlAcS 10 tuo rescue III times Oh
financial distress; magician. with
power to work miracles, or a fairy
godmother, to shower blessings. He
knows little of it's workings and cares
less. SO long as his dream of its
beneflcence is not disturbed.
Republican Charge.
The republican campaign text book,
the official organ of the party in the
campaign, copied and thereby indorsed
a G. ton of
Reserve Board, made in a report of a
subcommittee on national affairs to the
National Republican Club, last April.
An echo of the criticism was found in
the republican platform, adopted at
Chicago. which alleged that almost
of the Federal Reserve Board as to
credit control have been frankly domi-
mated by the convenience Of the Treas
ury."
The only demand, however. made
by the republican platform was that
''the federal reserve system should
be free from; political influence, which
is quite as important as it's inde-
pendence of domination by financial
comb mbinations."
came from sources auxiliary to the
campaign management.
The democratic national platform
praised the federal reserve act and held
u up aS the nope and inspiration of
business" AS if scenting attacks
upon it. the democratic platform con-
tended that "one vital danger against
which the American people should
keep constantly on guard is the COM
mitment of this system to partisan
enemies who struggled against it's
adoption and vainly attempted to re-
tain in the hands of speculative bank
ers a monopoly of the currency cred
it's of the nation. =
Already" continued the democratic
platform declaration. there are we'll
defined indications of an assault upon
the vital principles of the system in
the event of republican success in the
elections in November"
Charge Made by Cox.
Later Candidate Cox expanded on
that subject by charging thatthe re-
pubIicans, in raising fifteen-million-
dollar campaign fund, had in mind
capturing the Federal Reserve Board
for ulterior purposes.
The main charge laid against the
operation of the Federal Reserve
Board in the republican campaign
text book was that It is. by its pres
ent constitution TOO much under con-
troll of the President of the United
States, the Secretary of the Treasury