Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1921-04-26
TUESDAY. AFHl. 20, 1874.
Mr.. Williams and the Reserve Board

SYTHEN John shelton Williams appeared
w before the Peoples Reconstruction
League recently ii was in his role rs a pri-
waite citizen, released from any shacklcs or
high public position ana free TO speak his
mind rs he deemed best for the public good
AS Comptroller OF the Currency and an en-
ofhcio member of the Federal Reserve
board he had on several occasions spoken
vigorously in criticism of the boards de-
fation policy. but never had lie denounced
it in such unmcusured terms rs those OF his
Washington address Indeed, it may be
doubted if any other Federal body ever has
undergone a more severe cxcoriaiion than
that administered to the Reserve Board by
the retired comptroller.
Truth OF Mr.. Williams charges against
the board will not be widely doubted. They
are in line with former statements made by
him while still in office, and they bear ont
in toto observations made at various times
j IN the last year by this newspaper in its dis
customs OF the credit situation forced by
the board and its disastrous effect Oh the
natlons business, especially in the South,
which was brought 10 the very edge OF IL
rarcial and industrial calamity. Mr. Will
liams confirms the conditions against which
Governor Davis issued a warning in his note
O. last fall to President Wilson, and which
were Gc1!cted by other economists through
ont the country.
Perhaps Mr.. Williams believed that by
retaining his eX-ofiicio membership on the
board, registering his protests and excrting
las influence on the inside, he could accom-
p!.sA moro for the country than he could in
his private capacity, but The Times Dispatch
is Inclined 10 agree with the Manufacturers
Record, which regrets that Mr.. Williams.
all
protests and pleas for u more liberal and a
stJnct policy ignored. dill no, feel it incum-
bent upon him 10 tender. his resignation
and, freed from all official obstacles, hgula-
lively shout the truth from the nations
housetops. The Record believes had he
pursued that course, he could have saved
hundreds OF millions of dollars to the coun-
try through tile nationwide protest that
would have arisen and forced Il change in
the attitude Of the board But MIR Williams
did not see his duty along that line, and
even at this late day the nation owes to him
debt of gratitude for the startling rcvcla-
lions he has made, which unquestonably
will be prolific of beneficial results
Mr.. Williams sees in the Federal reserve
system "the greatest produc, of financial
and political genius the world has known
He credits ii with all it did in pulling this
nation safely through the financial breakers
of great war. lis !railties have not been
in the system itself. but in the mistakes OF
the men directing il. He is confident that
in the postwar reconstruction period tn,
board by a wiser policy could have prevent.
ed "a fall so precipitate and smashing and
from much OF the ruin and distress through
which we have been dragged and coult
have made the shrinkage in values more
gradual and uniform and helped keep tn,
currents of commerce at more norma
now." He can find no sympathy for pol
icy that denied credit To agricultural anc
Industrial interests while the Now 10 Wal
Street was unimpcded. Nor can he fine
justice in policy that permitted banks L
lend out the peoples money in times o
stress at rates which in certain instance
ran from 45 TO 200 per cent.
Mr. williams would have done with III
sps bureau mania" which he thinks has pctri
sg led the board He would have more lib
n ,ral policy with the reserve banks "nos
q unused lending power of $4,000, 900, 600
or ten times as much money the maxi
mum amount the nations banks borrowe
before the European war" lie would hav
Tho reserve act amended so as to make tn
board ''foo-proof and crook proof
These arc strong views, forccfUlly pre-
Z sentcd but they are considered views an
4 not presented in the heat OF passion
they result in arousing the nation TO n dc
4 1nand which will make the board {; real hu
man Instrument for the general good OF IN
naiion's business, and provide for the 'ebi
~ tINt, M.