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About The commoner. (Lincoln, Neb.) 1901-1923 | View Entire Issue (April 1, 1914)
?J? S r, ' " "j. r fVUGP The Commoner 'APRIL, 1914 f - w v ' . 0 0 "STAND BY THE PRESIDENT," COUN- 0 SELS MR. RICHARD OLNEY, IN LETTER " The following letter was read In the house of representatives at the close of the tolls dehate in reply to the opponents of the repeal bill who had quoted Richard Olney, secretary of state in Cleveland's second cabinet, as opposed to President Wilson's policy: Boston, March 28, 1914. Hon. Andrew J. Peters, House of Representatives, Washington, D. C. My Dear Mr. Peters: I have your favor of the 25th instant asking my views as to how a representative in con- gress should vote on the bill to repeal the free-tolls provision of the Panama canal 0 act. If I were in your position, I am very certain I should feel that I ought to stand by the president. The situation is peculiar. Here is a treaty unquestionably obscure and sus- ceptible of two opposite interpretations, as conclusively shown by the conflicting views of two presidents of the United States and by the irreconcilable differ- ence of opinion among eminent lawyers without regard to their political affllia- tions. Recognizing this situation, and though he might have proposed arbitra- tion, the president, in 'effect, declajes that the merits of the issue are imina- terial, and that the repeal of the act which raises the issue is absolutely essen- tial to our good standing with the great powers of the world and to the proper conduct of our foreign relations. He makes this declaration as president and as that branch of the national govern- ment especially charged with our foreign relations, and takes the responsibility of assuring congress and the country that, as compared with the results to be gained by repeal, all other matters involved are of slight account. Now, this declaration of the president must be accepted as made in good faith, with absolute sin- cerity, and with an intimate knowledge of foreign relations that congress can not pretend to. What else, therefore, is there to do but follow the president's lead upon a matter upon which he is en- titled to lead both by reason of superior acquaintance with the subject and be- cause our frame of government requires him to lead? It must be borne in mind that for congress not to support such an urgent appeal as the president has made in tl is instance is not merely to defeat a measure which may be, and which he deems to be. required both by the honor and the well-being of the nation. It is to discredit him for the future, it is to weaken and prejudice him in his subse- quent intercourse with foreign nations, it is to give them notice that he is rather a figurehead than a real factor in the na- tional government, and that dealings with him are hardly to be regarded as ver serious affairs. OLher pertinent considerations leading to the same result might be mentioned, but in the precise situation now confront- ing congress they may, I think, be safely passed over because those already given ought to be regarded as decisive. Very trulv yours, RICHARD OLNEY. THe Work of the President's Cabinet An investigating committee of the New Jersey assembly has gathered indubitable evidence of the existence of a hard coal trust. The an nouncement would have caused public indigna tion to rise a greater height if it had come earlier in the furnace season, but every man who bought a ton last fall will accept the com mittee report without protest. TREASURY DEPARTMENT Former President Taft has become a frequent contributor to the magazines, and is discussing in turn the various important political policies. There are doubtless some republicans unkind enough to say that if he had been as frank and outspoken, say about six year3 ago, as he is now, he might not be wearing his present title. LAST DOLLAR OF CROP-MOVING FUND RE PAID The treasury department during the crop mov ing season of 1913 deposited in 193 banks in G2 cities in the 28 states of the country whore the demand existed, a total of $37,380,000 for crop moving purposes, upon the security almost wholly of commercial paper. These deposits were repayable to the government In install ments, the last one of which matured April 1, 1914. Secretary McAdoo announces that the total amount has been repaid and that the gov ernment received as interest, which is clear ""profit on the transaction, a total, in round num bers, of $260,000. The secretary says that the amount of money required to move the crops was much less than expected. This resulted un doubtedly from the fact that confidence in the situation was restored by the knowledge that the government stood ready with any amount of money needed for the purpose, and that credits were, therefore, more freely distributed by the banks of the country after the announcement was mcde. In addition to assistance in financing the movement of the crops, the deposits also re dounded to the benefit .of the government by adding $260,000 to the general fund of the treasury. It will be the policy of the secretary always to' come to the assistance of the banks whenever stress incident to prosperous crops make it necessary. The prompt repayment of the deposits by the banks justified the action of the secretary in accepting commercial paper as security for the government funds, and refuted the dire predictions that were made in some quarters that the government would not got the money back. Had the secretary of the treasury insisted upon United States bonds alone as security for these deposits, the offer to the banks would have meant little or nothing, because it would have been necessary for them to have gone to the market and purchased federal gov ernment bonds in the same amount as the de posits which they were to receive. The accept ance of prime commercial paper, which the banks already had on hand, made the money easily ac cessible. Before the money was deposited with the bankB all the paper offered as security was passed upon by the secretary of the treasury and the interests of the government properly safe guarded. FEDERAL RESERVE BANKS LOCATED The decision of the reserve bank organization committee, determining the federal reserve dis tricts and the location of the federal reserve banks, under the federal reserve act approved December 23, 1913, lwas made public. April 2. The members of the committee were Secretary of the Treasury McAdoo, Secretary D, F. Houston and Comptroller John Skelton Williams. The following is taken from the report: The federal reserve act directs the reserve bank organization committee to "designate not less than eight nor more than twelve cities Jto be known as federal reserve cities," to "divide the continental United States, excluding Alaska, into districts, each district to contain only one of such .federal reserve cities," and to apportion the dis tricts "with due regard to the convenience and customary course of business." The act pro vides that the districts may not necessarily be coteminous with any state or states. In determining the reserve districts and in designating the cities within such districts where federal reserve banks shall be severally located, the organization committee has given full con sideration to the important factors bearing upon the subject. The committee held public hear ings in eighteen of the leading cities from the Atlantic to the Pacific and from the great lakes to the gulf, and was materially assisted thereby in determining the districts and the reserve cities Every reasonable opportunity has been afford ed applicant cities to furnish evidence to sup port their claims as locations for federal reserve banks. More than 200 cities, through their clearing house associations, chambers of commerce and other representatives, were heard. Of these, 37 cities asked to be designated as the headquarters of a federal reserve bank. The majority of the organization committee, including its chairman and the secretary of agri culture, wore present at all hearings, and steno graphic reports of tho proceedings wore made tor more deliberate consideration. Independent investigations wero, in addition, made through tho treasury department, and tho preference of each bank as to tho location of tho federal re serve bank with which it desirod to be connected was ascertained by an independent card ballot addressed to each of tho 7,475 national banks throughout tho country which had formally as sented to the provisions of the federal rcsorve act. In determining the several districts, tho com mitteo has endeavored to follow stato lines as closely as practicable, and whorovor it has beon found necessary to deviate, the division has boon along lines which are believed to be most con venient and advantageous for die districts af fected. Tho twelvo districts and tho twelvo cities selected for the location of the federal reserve banks aro an follows: District No. 1. Tho New England states: Maine, New Hampshire, Vermont, Massachusetts, Rhodo Island and Connecticut, with tho city of Boston as tho location of the federal reserve bank. This district contains 44G national banks, with a total capital stock of $9,931,740. District No. 2. Tho state of Now York, with New York CItv as tho location of the federal re serve bank. This district contains 478 national bankq, with a total capital stock of $20,687,616. District No. 3. Tho states of Now Jersey, and Delaware and all that part of Pennsylvania located east of the western boundary of the fol lowing counties: McKean, Elk, Clearfield, Cam bria and Bedford, with the federal reserve bank in the city of Philadelphia. This district con tains 800 national banks, with a total capital stock of $12,993,013. District No. 4. The state of Ohio, all that part of Pennsylvania lying weBt of District No, 3; the counties of Marshall, Ohio, Brooke and Hancock in the state of West Virginia, and all that part of the stato of Kentucky located cast of the western boundary of the following coun ties: Boone, Grant. Scott, Woodford, Jessamine, Garrard, Lincoln, Pulaski and McCreary, with the city of Cleveland, Ohio, as tho location of the federal reserve bank. This district contains 724 national banks with a total capital stock of $11,621,535. District No. 5. The District of Columbia and the states of Maryland. Virginia, North Carolina, South Carolina, and all of West Virginia except the counties of Marshall, Ohio, Brooke and Han cock, with tho federal reserve bank located In tho city of Richmond, Virginia. This district contains 475 national banks with a total capital stock of $6,543,281. District No. 6. The states of Alabama, Georgia and Florida, all that part of Tennessee located east of the western boundary of the fol lowing counties: Stewart, Houston, Wayne, Humphreys and Perry: all that part of Missis sippi located south of the northern boundary of the following counties: Issaquena, Sharkey, Yazoo. Kemper, Madison, Leake and Neshoba; and all of the southeastern part of Louisiana located east of the western boundary of the fol lowing counties: Polnte, Coupee. Iberville, As sumption and Terrebonne, with the city of Atlanta, Georgia, as the location of the federal reserve bank. This district contains 372 na tional banks with a total capital stock of $4,702,780. District No. 7. The state of Iowa, all that part of Wisconsin located south of the northern boundary of the following counties: Vernon, Sauk, Columbia, Dodge, Washington and Osau kee; all of tho southern peninsula of Michigan, viz: that part east of Lake Michigan; all that part of Illinois located north of a line forming the southern boundary of the following counties: Hancock, Schuyler, Cass. Sancamon, Christian. Shelby, Cumberland and Clark; and all that part of Indiana north of a line forming the southern boundary of the following counties: Vigo, Clay, Owen, Monroe. Brown, Bartholomew, Jennings. Ripley, and Ohio, with the federal re serve barile located In the city of Chicago Illinois., This district contains 984 national banks, with a total capital stock of $13,151,925. District No. 8. Tho stato of Arkansas, all that part of Missouri located east of the western boundary of tho following counties: Harrison, Daviess, Caldwell, Ray, Lafayette, Johnson. -V&. ' v '.w 'iJK- I. v. ??'. "'JjnkJjf 'ii.is