The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1936-09-03

erS best by deVotlng his attentlon
solely to management of the Re-
settlement administration and that
others would do the campaigning.
1t seems strange, therefore, that
Mr.. Ickes, Secretary Wallace and
a few others should be campaigning
in a manner exemplified by the
Ickes radio speech while Professor
Tugwen is kept muzzled.
1t may be, as Jim Farley said,
that this will be one of the bitterest
campaigns with which he has. ever
been identified. To this / would add
the belief that if it is of that type, it
results partially at least from the
indication that the battle will be as
close as a horse race.
There is a situation in the fed
eral government that threatens to
be quite nasty. I
Probe refer to the row
C.Men that has devel-
oped between the
Department of Justice bureau of
investigation (the G-men) and the
Treasury's secret service corps. 1t
is all very much under cover, quite
secret, but the. row has come to
the surface sufficiently to result in
a demotion of two longtime men,
bers of the secret service.
j. Edgar Hoover has been well
press-agented as chief of the Omen.
Joseph E. Murphy has had almost
no advertising as assistant chief OF
the Treasury secret service In
which he has served for more than
a quarter of a century. Mr.. Muir
ply and one of his subordinates
have been reduced in rank, their
record stained fo- life.
The two departments have kept
the facts well covered up. 1t seems
that something was going on among
the Omen that the Treasury secret
service thought they ought to know
about. They conducted their own
inquiry, their own investigation into
the other staff of investigators. That
is as much as has been made public
except Secretary Morgenthau's an
nouncement of the demotion order.
I have known each of these men
equally twenty years. Each is en-
titled to the utmost respect. But
each operates along an entirely diff
ferent line-Hoover with some will
ingness for publicity; Murphy with
an absolute policy of never letting
his name get into the papers. 1t
is unfortunate that Joe Murphy was
the goat.
The board of governors of the
Federal Reserve system took an ac-
ton recently that
Action probably is quite
Mystifes mystifying to the
average person.
They ordered all of the banks OF
the country which are members OF
the Federal Reserve system to keep
! deposit reserve with the Federal
Reserve banks Is per cent greater
than ever has been required before
With the technical phases of re.
serve requirements and the me
chanical operation of this particular
order, think we need not be very
much concerned. But with the prin
ciple upon which this action is tax
en- I think every one with bank
account, however small, ought to be
vitality interested. They ought tt
be interested for the very simple
reason that this action illustrate:
better than any words I can write
how far the Capitalization of contro
of the banking structure has gone
This action was taken under the
National Banking act of 1885, ;
statute that has been frequently
criticised as political banking
act"
In the instance I have just re
ported, the change in the reserve
requirements probably will have nj
serious reaction on us as individu
ais. 1t probably will not hurt tn
banks because few banks in tn
country have had calls for loan
in any quantity since business is a
such a low level. But the point
that under this law, the Fedora
Reserve board of governors ca
alter banking conditions over night
It can issue new rules and regula
tons that are wholly impossible c
understanding by the average ind
vidual, but which are almost rio
GUS in their effect upon the manage
ment of individual banks through
out the country.
To state this proposition in anotf
J er way, may / describe it in tn
/ terms of a private business entel
prise. If storekeeper in sma
town were subjected to regulatio
7 from Washington and the regulator
| power in the federal governmer
: had such discretionary authority {
: the Federal Reserve board of go
t ernors, could that storekeeper eve
, feel that he was managing his ow
f business? think not. Then, in II
/ case of the Federal Reserve boar
! of governors, it must be added tn;
f the president of the board is Mari
ner S. Eccles who is known far ar
Y wide for his radical ideas abo
t banking. 1t can be further said tn
It Mr.. Eccles has the ear of Preside
o Roosevelt. This has been CRITICS,
:, many times of course where opp
d nents of the Roosevelt banking pc
(, cies have contended that the ban
S can be utilized in any way the a
/ ministration desires to use them.
a an illustration of this, the FEEDER
government has been borrowing b
z lions. Most banks are chock f,
a. of government securities. While
d do not say it has happened, yet
IS cause I do not believe it has hs
j. pened yet, nevertheless there
d a possibility that government b.
lie rowings can be forced on the ban