The Washington times., 1921-04-18
'F|NANCEBOARD
SHAKE-UP NEAR
Crissenger to Be Made Member
In Plan to Take Group Out I
of Politics.
BY NORMAN HAPGOOD.

Dy NOnMAN uArUOOU.
President Harding has. l think.
made up his mind to an appoint
ment that reflects credit both on his
judgment and on his serious inten-
tions. The present comptroller of
the currency, ID. X. Crissenger. will
be made member Of the Federal
Rserve Board.
VICTORY FOR PRESIDENT.
The Crissenger story Is an inter-
esting one. and so far IL is q triumph
for the President. At nrst the ap-
pointment of Crissinger to the office
of comptroller was looked on with
dismay by those who realize the ex-
ceedingly precarious nature of the
credit situation during the last few
months.
1t was received with especial dis
may by those who believe the Fed
eral Reserve system and the austere
manner in which It has been ad-
ministered by the board are the only
things that have enabled this coun-
try to avoid serious depression In
the series of crises since the last
Gays of July. 1914.
1t is an open secret that the reia-
tions between the Federal Reserve
Board and the preceding Comptrclle-.
John Shelton Williams, were none
too good. When President Harding
urged w. p. G. Harding. chairman
of the Reserve Board. to reconsider
his intention Of resigning the board
was much cheered. thinking it saw
an indication that the President in
tended to keep the board out of
politics, which indeed he specifically
stated.
When, however. Crissenger was ap-
pointed Comptroller a contrary wave
of feeling was started. IL was felt
that here was some kind OF personal
pull intruding into a great and deli
cate financial situation. Immediately
however, the President was justified
SEEKS TO AID BOARD.
Crissenger's hrst step was to show
that he intended to cooperate cor
daily with the board. He sought to
know their wishes and to help in car
rying them out.
Instead Of being jealous and dis
trustful about the special informa tion
obtained by his department, he offer
ed it freely to the board.
President Harding was confident
when he selected Crissenger, that he
had personal knowledge OF his Marion
friend sufficient to prove that he
would succeed in hg affairs. To be
sure he had operated on a small scale
heretofore. but President Harding
believes the essentials of human life
and conduct can be learned in areas
Of limited size.
Crissenger had been an Ohio banker
He had been a farmer. He had been
a manufacturer. The President fig-
ured that his friend could see the ma
tional financial situation steadily and
see il whole.
So correct was the President that, II
I am right in prophesyinE. Crissenser
will go on the reserve board, as am
confident there will be no one to criti-
else the promotion. The board is to
be reorganizcd.
The Secretary Of the Treasury will
not be member but will be repre-
sented by an assistant. When the Re-
publican platform said the board was
to be taken out OF politics" 1t meant
that IL was to be made independent
of the Secretary OF the Treasury.
In this reorganization one extra
member Is to be appointed. 1t is this
position. opened by the appointment
of an extra member that Crissenger is
to NIL.
"RoOT TOO CLOSE TO STREET.
Now I want to add something else.
important and delicate. There is some
reason to believe that the reason the
President appointed Hughes Secretary
of State instead OF Root is that hc
thought Root too close to Wall
street.
Well. Mr.. Harding will soon have
an opportunity to apply that attitude
to the credit situation. He will soon
have an opportunity to throw his
weight against the success Of an at.
tempt being made by the big New
York banks to get back tho power
the Federal Reserve system was de-
signed to take away from them.
There will be introduced, almost
Immediately, unless this warning ha<.
it's effect, an amendment to the Fed
eral Reserve act tending to restor.
the old system of interlocking direc.
torates, which was the very basis OF
the credit trust, or the 'so-called
money trust
to allow interlocking directors where
there Is no competition The new
amendment will add "or where there
would result no restriction of cred
It."
The purpose Of this subtle and
malign amendment il plain. It is
now assumed that interlocking direc-
torates, where there Is competition,
means restrfrtEAn OF credit. The pro-
posed anne endment would throw the
burden of proving restriction IN The
Federal Reserve Board. Proof is
practically impossible.
The money trust would come back
in full power. 1t has been hard
enough at best to control its power.
President Harding's attitude toward
this vicious plan will be watched
with the closest interest.
tcTIIC VInO Dl CCCC NDICIC.