The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1922-05-09
URGE RESERVE
BOARD RETAIN
ITS PRESIDENT
Bankers Favor Reappoint-
ment of W. P. G. Harding at
End of Term-Want Board
Permanent.
NOT POLITICAL, CLAIM
ny MARK SULLIVAN

the federal reserve board, W. P G.
Harding, shall be re-appointed has be-
come the subject of rapidly increas-
ing interest
This interest first arose among poll
ticians and has spread among bank
ers and business men. 1t centers,
partly, of course on Governor Hard
ing as an individual and on his rec
ord as a public official; but in It's
later manifestations the discussion is
based more largely on the broader IS
sues of the non-partisan quality of tho
reserve board. it's freedom from poll
!. tics. and, in general, its position as a
Iind of supreme court of the world
and banking and business.
Governor Harding is a Democrat.
Before his appointment by President
Wilson, he was a banker at Birming-
ham. Ala At the time President VIII
son left office and just before Presi-
dent Harding entered the White
House, it is understood that Governor
Harding approached President Hard
ing with the suggestion that If his
resignation were desired it would be
rendered. The federal reserve board
was a new institution, which had aris-
en- during Wilson's administration,
and there was no precedent as to
whether or not the head of it would be
expected to give the new president
the opportunity to name new man.
Different Precedents
Some departments of the govern
ment have one precedent, some an
other 1t is generally expected, for
example. that ambassadors to foreign
Ill nl-r
president the opportunity to name his
own men In other departments of
the government precedents are to the
contrary.
In the present case, when Governor
Harding offered to make his resigna-
tion available, it is understood that
President Harding took the position
that the federal reserve board should
be regarded as a continuing institu-
ton and that the head of 1t should
not be expected. to tender his resig-
nation on the incoming of a new presi-
dent.
This position Of President Harding's
earned approval from all who were
concerned with building up for the
federal reserve board a sanctity some
what like that of the supreme court.
Nearing End of Term
Now, however, the question comes
n up in new form. Gov. Harding Is
Y approaching the end of the formal
eight year term for which he was ap-
pointed. The question now is, whetn-
er he shall be .re-appointed or whether
President Harding shall name differ
ent man.
There has arisen throughout the
country a formidable movement on the
part of bankers and business men in
favor of the retention of Gov. Harding.
This movement is concerned less
with Gov Harding personally than
with establishing the principle that
he federal reserve board shall be a
continuing body, that a tradition shall
be built up to the effect that mem
Der who serves it we'll shall be enabled
to look upon it as a life career, and
shall not regard it merely as tenn
porary position.
This latter conception would involve
the danger of members of the board
having towards their position the pos,
sible attitude of using it as a leverage
from which to rise to later career in
private business.
Gives Sanctity
In short, the movement, which has
Gov. Harding. would give the federal
reserve board the greatest possible
sanctity and dignity. as nearly as pos
sible the sanctity and freedom from
self-interest and from all outside con
siderations that the supreme court has
1t is also true that in the past there
has been a great deal of criticism OF
Governor Harding and of the man
agement of the federal reserve board
Much of this opposition has been ex
=. pressed on the floor of the United
.. States senate. In fact, so many sen
Ehtors have at one time or another crit
icized Governor Harding and the oper
ations of the federal reserve board
that some doubt has occasionally
arisen whether Governor Harding, i
reappointed by the president, would bt
ratified by the senate.
Opposition Dying
However, the opposition to Governor
Harding within the senate has dice
down markedly and it is probable tina
if President Harding should conclude
TO reappoint him the senate would no
oppose him stubbornly.
Tht criticisms of Governor Hardin,
first arose about two years ago whel
the federal reserve board began tn,
process OF deHatIon. This process
worked much hardship in various sec
tions of the country not only to ind
viduals. but to whole communities
There was no place where the feeling
of resentment against Governor Hard
ing and the process of deflation wa
stronger than among the cotton grow
ers of his own southern district. Som
Of the most bitter criticism of tn
work of the board came from southern
Democratic senators.
This fact was IN itself proof tha
Governor Harding, although Demo
crat and southerner, was directin
the operations of the federal reserv
board without regard to party and tn
determination with which he followe
course unsatisfactory to powerfu
members of his own party is now cite
: 3as a reason why the Republican part
bhould approve and continue the trad
51tion of non-partisanship, which Co
ernor Harding practiced
Copyright, 1922, by The New Yor
Evening Post, Inc.)