Show e National Topics Interpreted by William Bruckart 4 For the first time sinco since the federal fed fed- era crai eral reserve s system stem was created avery n a very cry real rift has hag hagIs hasIs Is Politics de developed vel 0 p e d be- be Creeping In tween the federal reserve board and the federal advisory ad council that group of business leaders lenders which Is supposed to act as ns Int Intermediary between be between tween the reserve reser board and the public The line of ot cleavage age has hns developed eloped over o gold now flow far It may nifty go In disturbing faith In the federal reserve s system stem as ns n ban bankIng bank bank- Ie- Ie In lug Ing structure Is yet jet too early to tell but I find Ond In man many quarters frequent frequent fre fre- quent questions questIons' as ns to the indication Indication Indica indica- tion that politics may be creeping Into government supervision of ot the Ule c country's largest banking unit the federal reserve system The controversy contro had Its origin In Ina Ina Ina a statement of ot views delivered to the reserve board by the advisory council last lost month Of course the advIsory council has no power and can cnn only function unction In accordance with Its name and give gl suggestions to the the reserve resene board Its Influence nevertheless heretofore always has been an nn Important factor in federal supervIsion of or bank policies and any wide difference of opinion between the advisory council and the reserve reserve re ra- re- re serve ser board naturally Is an Influential influential factor in financial conditions The reserve resene hoard board did not enjoy enjo the statement of views from the advisory ad- ad council which was to the Uie effect effect effect ef ef- that no real or permanent re ree covert cover ery co can be hoped for until the federal go government go eminent returns to t the e eold gold old standard for our currency It said Bald unequivocally that the currency and credit supply now existing is 11 ample for all needs and that bus busl business busi- busi ness Dess cannot be expected to go forward forward for for- ward until It has some assurance of or ofa orn a n permanency In our currency In addition to the councils council's criticIsm criticism criticism cism of the currency policy of or the administration It did not pull puB Its punches with respect to the countless countless countless count count- less governmental experiments In business I quote that paragraph of Its statement A serious factor of rapidly Increasing Increasing Increasing In In- creasing Importance Is the tendency of business enterprises directly conducted conducted conducted con con- ducted by government go agencies to reach out out further and further Into fields heretofore occupied by private ate capital thereby destroying taxable values The use of government go money In competition with private business is not only paralyzing to prIvate Initiative re but experience has amply demonstrated that It is costly costly cost cost- ly y generally inefficient and that Its disastrous effects reach far beyond the limitation of or the particular In Industry Industry industry In- In immediately affected The council had much more to toBa toBay Ba say Bay respecting other policies of the present adminis- adminis Fear Savings including Threatened what It described as a constant threat of Inflation a condition that the council felt was stifling personal personal per per- thrift It asked dIrectly whether er there was any Inducement for an Individual to save or to buy life Insurance Insurance insurance in In- and ami preserve earnings s against the time when age will prevent pre pro vent ent continued d production of Income If there was an overhanging threat that nil all these savings may be wiped out by uncontrolled Inflation of the currency Obviously Ob the federal reserve reser board was wrought up when the advisory nd council did the unusual thing of making public Its Itt views Although Al Al' Although though the council withheld Its statement until three weeks after the meeting at which it was drafted drafted draft draft- ed and given ghen the reserve board that lapse of time did not salve the feelIngs feelIngs feelings feel- feel Ings of the board To show how It felt about th the tho action of ot the advisory council the board very promptly met and adopted adopted adopt adopt- ed a resolution by unanimous vote returning the councils council's statement to Its secretary This spanking has aroused n a great many business leaders leaders lead lead- ers who have expressed fears that politics now Is permeating the two federal agencies for the advisory council Is a body created by statute Just as much as the federal reserve board No o one can cnn tell what the outcropping of ot this situation may be There are am a n number of men men in the advisory ad council membership who hn have been outspoken In their support of President Roosevelt nooses likewise the President has hns named members of the present reserve board one or two others of that group croup of seven seen are entirely In har har- harmony harmony harmony mony with his economic economic policies e Consequently there Is much talk In Washington that the two schools of economic thought are arc engaged In a n clash that may be serious In Its effect ef of feet on the supervision of the country's coun coun- try's banking structure S S o Whatever may be the attitude of or the reserve board I 1 have found a considerable bod hods' Within of opinion holding Its Rights nights the advisory counell coun ell was function functioning iD lag ing within Its own sphere when It made the statement to the board As explained above c the board wa was s sunder under no compunction to abide by bj bythe bythe the expressions from the advisory ad council and if It it elected to do so 50 It could allow the councils council's views to be pigeon holed and for forgotten But the point Is that the council Is representative o of business and financial Interests and therefore when It considered federal policies It was speaking for that segment of our national life which otherwise had no means of making Itself vocal according to much opinion Inthe in inthe inthe the National Capital Further the fact that the council tool took direct Issue with the administration administration administration adminis adminis- is being regarded in to many quarters as a n healthy sign I believe believe be be- beI I lieve there Is no dispute about the tho right of Individuals or groups to to criticize the political party responsible responsible responsible I sible for government go mana management ement I Int at nt any time and L If the particular part of our commerce and Industry represented by the advisory council feels dissatisfied with the gold policy policy pol pol- 1 ic icy with the unbalanced budget with the continual spending and experiments experiments experiments ex ex- that have ha gone ono on there Is a great number of people who Insist Insist In In- those views should be disclosed Some students of economy and government gov gOY here nere hold to the opinion that such expressions may have a tendency to lead lend to policies a acceptable acceptable accept accept- able to both sides This phase of the situation ma may maybe maylie be lie linked to the efforts which the administration has been making to accomplish an understanding with some Important business leaders lenders through frequent conferences at nt the White House and through Informal and Indirect meetings outside of Washington I refer to the dinners and meetings meetings' which have been held mariy many In New r York by Prof Prot Raymond Raymond Raymond Ray Ray- mond Moley Ioley formerly the number one member of the brain trust but now a magazine editor Although White House sources deny den any part partIn In hi the Moley dinners most Washington Washington Wash Wash- ington Ifton observers ers accept the denial with a grain of salt Thc They are convinced convinced con con- vinced that Mr Roosevelt Roose is fully Informed of ot the views expressed by individual business leaders in those meetings and that he Is seeking some basis of ot understanding with business It takes no stretch of the Imagination then to connect these various happenings despite the wounded feelings of oC the federal reserve board hoard 4 Henry P P. P Fletcher chairman of ot the Republican ll an national committee said the 0 other the r Makes Make It day he be anticipated Losing Fight little increase in Republican membership membership membership mem mem- in the house of tives tires He lIe can see no method ho said of defeating the disbursement of cash that has been going on Inthe inthe In lii the Roosevelt elt administration The Republican chairman's statement statement state state- ment followed compilation by the Democratic national committee of figures showing the amount of cash that has been paid out by the government government government gov gov- through Its various channels channels channels chan chan- nels since President Roosevelt took the reins The Democratic committee commit commit- tee compiled a list of states and set setoff setoff setoff off against a each state the amount of money moner distributed therein for relief relief re re- lief agricultural benefits public works construction and otherwise Democratic campaigners were not Invited to use these figures but Chairman Fletcher insisted that was tho the ba Is s and the real reason renson for tor I their compilation I The Republican chairman told newspaper correspondents In a press conference that he was not accusing accusing In ing the Roosevelt administration of hu buying votes rotes but he lie added with candor candor can can- dor clor that votes natural naturally were going to go toward the source of money supplied With several billions being distributed and n a considerable amount being turned loose within the last month Mr Ir Fletcher made a n clean clenn breast of ot his feelings that It was difficult to battle Santa Claus In conne connection with the Republican charges over oyer cash distribution both bothof bothof bothof of the tho national committees have been com compiling st statistics respecting registration of voters through the country in preparation for the elec elec- tion These reports Indicate that public Interest Is aroused far nr beyond the usual condition Voters are arc awakened to the Importance of ot these elections Obviously Ious there arc are many local issues to be fou fought ht out and settled by hy the ballot The situation in Cal Cal- nia Is Illustrative of this Never NC before I am told has California seen such a rc registration list as ns ng-Is ng Is ls made up there In anticipation of the vote on Upton Sinclair's program pro ram lo to eliminate poverty po in Califor Cn n nia la J A Agricultural areas meas according to the registration lists are prepared to support or upset policies of the al adjustment administration tion and some Industrial centers center's show how figures ures Indicating widespread Interest in the vote vole that Is ia s naturally natural natural- ly Iy to have ha a bearing on the status of the national recovery recover tion Man Many astute politicians are saying saving that the great re registration makes guesses as ns to the outcome rather hazardous while the students students students stu stu- dents of government welcome the large polling lists as encouraging evidence of awakening Interest among the populace in this thing we w call government o O. 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