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The Madisonian. (Richmond, Ky.) 1913-1914, June 24, 1913, Image 11

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COIKSS GETS
Wide Reform Is Provided For in
New Measure.
. RIGID RULES FOR ' BANKS
Detail of the Proposed Law Which
' Has the. Indorsement of President
WyeoiUf-Federal Board to
''- Have Control.
Washington, June 20. -The Owens-Class-McAdoo
banking and currency
bill was introduced in both houses of
congress today.
This bill, which has the approval of
President Wilson, may be modified in
tome particulars during its considera
tion by congress, but in most of its
."features it will be"the law of the land,
:in all probability, before the adjourn--ment
of the present session of COn
JItSSS. Summary of Provisions.
iiummanzea, tne cm ib as iohows.
The secretary of tins treasury, the
attorney general, and the controller of
.the currency are formed into an or
ganization committee for the purpose
of dividing the United States into not
Uess than 12 districts, each district to
'Contain a federal reserve city.
T ' 1 . . t J iL .
j ii eacn ieaerai reserve city me or
ganization committee will organize a
federal reserve bank.
Evsry national bank within a re
erve district must subscribe 20 per
cent, of Its unimpaired capital to the
.capital stock of the federal reserve
bank of that district, the capital stock
to be not less than $ 5,000,000.
Limit on urancn Houses.
"Each federal reserve bank may es
tablish branch offices, the number of
which must not exceed one for each
$500,000 of the capital stock of such
federal reserve bank.
Every federal reserve bank shall bo
incorporated and shall have succes
y sion for a period of 20 years from its
organization.
Every federal reserve bank shall be
controlled by a board of nine direc
tors noiding oince for three years,
three of whom shall be chosen by the
stockholding banks, three represent
ing the general public Interests of the
reserve aismci, ana tnree designated
by the federal reserve board.. Share
.holders In a federal reserve bank shall
le entitled to an annual dividend of 6
per cent, on the paid up capital.
Raising of Surplus Fund.
One-half of the net earnings shall
Hbe paid Into the surplus fund until
that fund amounts to 20 per cent, of
-the bank'B capital, and the remaining
" fsuAU i,J but? VUliUU DiaLCO.
When the surplus fund amounts to
20 per cent, of the capital, and the
shareholders have received their five
per cent, dividends, all excess earn
ings shall be paid to the United
States.
.Any state bank, banking associa
tion, or trust company may subscribe
to the stock of a federal reserve bank.
A federal reserve board is created
consisting of nine members, the secre
tary of the treasury, the secretary of
.agriculture, and the comptroller of the
-currency, three members chosen by
the president of the United States and
by and with the advice and consent of
'the senate, for a term of six years,
one of whom is to be the governor, an-
other the vice-governor, and the third
rthe secretary; and three members
- chosen by the electors of the federal
reserve banks.
Powers of Federal Board.
The federal board as empow
ered: To examine accounts and books of
federal reserve banks.
To require or permit a federal re
p serve bank to rediscount the paper of
any of the federal reserve banks.
To establish each weak or oftener a
rate of discount which shall be mand
atory upon each federal reserve bank
for each class of paper.
To supervise and regulate the is
sue of treasury notes to federal re
serve banks. ' ...
To require the removal of federal
reserve bank officials for , incompe
tency, dereliction of duty, .fraud
or deceit.
To require the writing off of doubt
ful or Torthless assets upon the
books and balance sheets of federal
reserve banks.
To suspend the further operations
-of any federal reserve bank and ap
point a receiver therefor.
Limit of Bank's Business.
a teaerai reserve Dans may re
ceive from any of its stockholders de
posits of current funds, national bank
notes, federal reserve notes or checks
.and drafts upon solvent banks.
-Upon the endorsement of any mem-
rber bank it may discount notes and
r bills of exchange arising out. of com
.zoercial transactions. " .
Such notes or bills, however, shall
'.not be discounted for speculating pur-
Lposes. ,.
Various restrictions are imposed in
reference to the extent 'of the loaning
jM)wer of a federal reserve bank.
The federal reserve board may au
I thorize the reserve bank of a district
rto discount the direct obligations . of
' ixnember banks. . .
Certain open market operations are
permitted to reserve banks, v
Fiscal Aaents of Government!
" , All moneys now held in the general
fund of the treasury will be deposited
in federal reserve banks, which shall
ct as fiscal agents of the government.
AH revenues of the government shall
be deposited in such banks and dis
bursements drawn against such de
posits. '
The federal reserve banks may be re
quired to pay interest on government
deposits, but shall not pay Interest on
any other, v '; ;
The government and state banks de
positing in the federal reserve banks
shall be the only depositors in the re
serve banks. -
An issue of $500,000,000, plus an
amount equaj to the amount of na
tional banks notes which may be re
tired, is authorized.'
This issue shall be made at the dis
cretion of the federal reserve board.
Division of Treasury Notes. '
Any federal reserve bank may make
application to the federal reserve
board for such .amount of treasury
notes as it may desire, such . applica
tion to be accompanied with an offer
of collateral security to protect the
notes, equal in amount to the sum ap
plied for.
Whenever any federal reserve bank
shall disburse federal reserve trasury
notes, it must hold in .its own vaults
gold or lawful money, equal in amount
to 33 1-3 per cent, of the treasury notes
so paid out by it.
Federal reserve banks, may be re
quired to, deposit in the treasury a
sum in gold ,or lawful money.' equal
to 5 per cent, of whatever amount of
federal reserve treasury notes issued
to it
Exchange of collateral' "put -up for
notes is provided for.
Service as Clearing House.
The federal reserve board may act
as a clearing house for federal reserve
banks, and may. also require each such
Dans to exercise tne runcuons oi a
clearing house for its shareholding
banks.
Provision is made for the reduction
and wiping out of liability by federal
reserve banks.
The secretary of the treasury Is di
rected to exchange United States 2 per
cent, bonds, bearing the circulation
privilege of 3 per cent, bonds without
the circulating privilege. When the
outstanding 2 per cents, shall be ex
changed or refunded the power of na
tional banks to issue circulating notes
secured by United States bonds will
cease.
Every national bank may receive cir
culating notes under the conditions
prescribed by the bill, but no national
banks shall be "permitted to issue cir
culating notes or any substitute there
for. After twenty years national bank
notes remaining outstanding shall be
recalled.
Demand for Bank Reserves.
Within 60 days; after the establish
ment of a federal reserve bank every
national banking association shall es
tablish with the federal reserve bank
of its district a credit balance on the
books of the latter institution equal to
not less than three per cent of its
own total demand liabilities, exclusive
of circulating notes, and at the end of
14 months this amount shall be in
creased to five per cent
National banking associations clas
sified as country banks and situated
outside of central reserve and reserve
cities must maintain a reserve equal
to 15 per cent of the aggregate
amount of their deposits. National
banks in reserve cities must maintain
a reserve of 25 per cent of their out
standing deposits for 26 months after
the passage of . the bill and for 12
months thereafter 224 per cent, and
at the end of 38 months permanently
a reserve of 20 per cent of their stand
ing deposits.
Every federal reserve bank must at
all times have in its vaults in gold or
lawful money a sum equal to not less
than 33 1-3 per cent, of its outstand
ing demand liabilities.
Drastic Examination Provided.
Drastic and frequent examination of
national banking associations are pro
vided for.
Any national bank making a loan or
gratuity to an examiner is subject to
a fine 6f $1,000 and the officer or offi
cers of the bank authorizing it to an
additional fine of $500. Any examiner
accepting the loan or gratuity 1b fined
$500 and disqualified from office.
No officer or director of a national
bank may be .a beneficiary of any
transaction made on behalf of his
bank. Should , he violate this provi
sion he will be punished by a fine of
not less than $5,000 or by a peniten
tiary sentence of three years, or both.
- Responsibility oh Persons.
The stockholders of every national
banking association will be held in
dividually responsible for all obliga
tions of such association.
Any national . banking association
not situated in . a reserve city may
make farm loans, equal to. 25 per cent.
'of its capital and surplus or 50 per
cent of. its time deposits. -
'Any national banking association
capitalized, at $l,0P0,0p0.;or more may,
through the federal reserve board, es
tablish branches in foreign countries.
The bill describes Itself as "a bill to
provide for the establishment of fed
eral reserve banks for furnishing an
elastic currency, affording means for
rediscounting commercial paper and
to establish a : more effective super
vision of banking in the United States,
and for other purposes."
It prescribes that the short title of
the act shall be the "federal reserve
act" The second section which re
lates to "federal reserve districts" re
quires that within 60 days after pass
age of the bill the ' secretary ' of the
treasury, the attorney general, and the
controller of the currency, acting as
a reserve hank organization commit
tee," shall designate from among the
reserve the cities now authorized by
law a number, of euch cities, not less
than 12 to be known as federal reserve
cities, and shall divide the continen
tal United' States jnto "districts, each
district to contain one ot such federal
. reserve cities. . , ';' . ' -:
ESS;
ON THE CURRENCY
Appeals to Congress to Take
Prompt Action.
SAYS DUTY IS IMPERATIVE
Limitations of Present System to Be
' Removed for an Expansive and
Constructive Currency
Law. .
Washington, p. C. '- For the sec
ond .time since assuming the presiden
tial office, the nation's chief executive,
Mr. Woodrow Wilson, appeared in per
son today in the halls of congress and
before the joint session of the house
and senate delivered) his address on
currency legislation. In. an informal
way, and briefly, but earnestly, the
president pointed out - the imperative
duty of at once providing an elastic
currency . for the nation, and thus
emancipating business from the limi
tations of the present law. He said:
Full Text of Address.
Mr. Speaker, Mr. President, Gentle
men of the Congress: It is under the
compulsion of what seems to me a
clear, and Imperative duty that I have
a second time this session sought the
privilege of addressing you in person.
I know, of course, that the heated
season of the year "is upon us, that
work in these chambers ' and in the
committee rooms is likely to become
a burden as the season lengthens, and
that every consideration of personal
convenience and personal comfort,
perhaps, in the cases of some of us,
considerations of personal health
even, dictate an early conclusion of
the deliberations of the session.
An Imperative Duty.
But there are occasions of public
duty when these things which touch
us privately seem very small; when
the work to be done is so pressing
and so fraught with big consequences
that we know that we are not at lib
erty to weigh against it any point of
personal sacrifice. , We are now in the
presence of such an occasion. It is
absolutely imperative that we should
give the business men of this country
a banking and currency system by
means of which they can make use of
the freedom of enterprise and of in
dividual initiative which we are about
to bestow upon them.
Emancipation Day for Business.
We are about to set them free;, we
must not leave them without the tools
of action when they are free. We are
about to set them free by removing
the trammels of the protective tariff.
Ever since the Civil war they, have
waited for this emancipation and for
the free opportunities it will bring
with it It has been reserved for us
to give it to them. Some fell in love;
indeed, with the slothful uecurity of
their dependence upon the govern
ment; some took advantage ot the
shelter of the nursery to set up a
mimic mastery of their own within its
walls.
A New Day Dawning.
Now both the tonic and the disci
pline of liberty and maturity are to
ensue. There will, be some readjust
ments of purpose and point of view.
There win follow a period of expan
sion and new enterprise,' freshly con
ceived! It is for. us to determine
now . whether it . shall . be rapid and
facile and of easy accomplishment.
This it cannot be unless the resource
ful business men who are to deal with
the new circumstances are to have at
hand and ready for use . the instru
mentalities and conveniences of free
enterprise, which independent men
need when acting on their own ini
tiative. Action Must Be Constructive.
It is not enough to strike the
Ehackles from business. The duty of
statesmanship is not negative merely.
It is constructive also, l We must show
that we understand what business
needs and that we know how to sup
ply it No man, however casual and
superficial his observation of the con
ditions now prevailing in the country,
can fail to see that one of, the chief
things business needs now, and will
need increasingly, as it gains in scope
and vigor in the years immediately
ahead of us, is the proper means by
which readily to vitalize its credit,
corporate and individual, and its orig
inative brains. What, will" it profit us
to be free if we are not to bave the
best and most accessible instnimen
talities of commerce and enterprise?
What will it profit us to be quit of
one kind of monopoly if we are to re
main in the grip of another and more
effective kind? . ; . .
Must Aid and Protect Business.
How are we to gain and keep the
confidence of the business commu
nity, unless we know how both to aid
and to protect it? What shall we say
if we make fresh enterprise necessary
and also make it very difficult by leav
ing all else . except the tariff -just as
we found it?, ; The tyrannies of busi
Cleveland Win3 Fare Fight
Cleveland, O. Traction arbitra
tors 'gave the city a complete
victory -s in the dispute with the Con
con Thursday, when , they announced
their official . findings in a synopsis
preliminary, to making public the full
text of their decision.
The award goes against . the conten
tions of the city in "only one, particu
lar that of. charging; off immediately
$800,000 for scrapping of old power
equipment : ! ' - - '
ISO S ADD
I The award means there will ba. no
I chan. in the rate of fare. - $ ;
nessv big and little, If wtthfn the fLeU
of credit. We know fiat . Shall w
not act upon the knowledge? Do we
not know how to act upon it? - If a
man cannot make his assets available
at pleasure, his assets of capacity and
character and resource, what satisfac
tion is it to him to see opportunity
beckoning to him on every hand, wben
others have the keys of credit in their
pockets and treat them as all bat
their own private possession? It is
perfectly clear that it is our duty to
supply the new banking and currency
system the country needs, and that it
will immediately need ' it more than
ever.
Must Act Now.
The only question -iaN When shall
we supply it now, or later, after the
demands shall have become re
proaches that we were so dull and so
slow? Shall we hasten to change the
tariff laws and then be laggards about
making it possible and easy for the
country to take advantage of the
change? Ther.e can be only one an
swer tQ that question. 'We must act
now, at whatever sacrifice to our
selves. It is a duty which the cir
cumstances forbid us to postpone. I
should be recreant to my deepest con
victions of public obligation did I not
press it upon you - with solemn and
urgent insistence. t
. Elastic Currency Reeded1.
The principles 'upon which we
should act are akso clear. The coun
try has sought and seen its path in
this matter within the last few years
sees It more clearly now than it
ever saw it before much more clear
ly, than when the last legislative pro
posals on the subject were made- We
must have a' currency, not rigid! as
now, but readily, elastically responsive
to sound credit, the expanding; and
contracting credits of everyday trans
actions, the normal ebb and flow- ot
personal and corporate dealings
Government Must Control'..
Our banking laws must mobilize- re
serves; must not permit the concen
tration anywhere in a few hands ot
the monetary resources of the- count
try or their use for speculative pur
poses in such volume as to hinder ox
impede or stand in the way of other
more legitimate, more fruitful; uses.
And the control of the system, of
banking and of issue which our new
laws are to set up must be public, not
private, must be vested in the govern
ment itself, so that the banks may be
.the Instruments, not the masers, of
business and of individual enterprise
and initiative.
Appeafs to Congress to Act at Once.
The committees of the congress to
which legislation of this character is
referred have devoted careful and dis
passionate study to the means of ac
complishing these objects. They
have honored me by consulting me.
They are ready to suggest action. I
have come to you, as the head of the
government and the responsible lead
er of the party in powerr-to urge ac
tion now. while there is time to serve
the country deliberately and 'as we
should,, in a clear air of common coun
sel. I appeal to you with a deep con
viction of duty. I believe that you
share- this conviction. I therefore ap
peal tic you with confidence.. I am
at your , service without reserve to
play my part In any way you may call
upon me to play it in this great en
terprise of exigent reform which it
will dignify and distinguish us to per
form and discredit us to neglect..
TROUBLE AHEAD FOR GLASS
Author-of Currency Bill to Have; Op
position of Other Members
of the ComVnittee.
i
Washington, D. C. Chairman
Glass of the house banking commit
tee faces a revolt in the committee
that endangers favorable actiom on
tbe currency bill. .Notice was served
on him Wednesday by members of; the
committee that they would not accept
blindly the bill that was being; forcedi
by th administration. They told- him.
that they resented . the . secrecy at
tached to the framing of the- bill and!
the lack of opportunity given mem
bers of the committee to assist in th
work.
Mr. Glass was forced into ai "close-
plan of committee work." He- op-
posed it but Presid.ent Wilson,, it is
Knderstood, counseled such, a course
and Mr. Glass was forced' into ac
quiescence. But two members: of Ms
committee, Bulkley of Ohio and Korb-
Iey of Indiana have been in his con
fidence. Other members of the com
mittee resent it. -v
State Hospital Head Exonerated.
Columbus', O. Dr. A. E. Babe,
superintendent of the Dayton State
hospital, ' charged by Dr. JL B,
Koch, former- assistant superintend
ent, with incompetency, immorality
and cruelty, has been exonerated by
the state board of administration.
Dayton, O. State Bank Superin
tendent. Lattaner closed the Osborn
bank at Osborn,' O. Deputy Superin
tendent J. A. Holmes was placed " in
charge. The bank: was' incorporated
in 1889 for $30,000. .
LABOR LEADERS GAIN APPEAL
Gompers, Mitchell and Morrison Get
New Hearing, Which Is Set
fop October. -
Washington, D. C. Chief Justice
White Thursday granted an appeal to
the supreme court for Samuel .Gom
pers; John Mitchell and Prank Mor
rison, labor leaders convicted, ot con
tempt of court In the noted Buck
Stove & Range, Co. case. The appeal
will ha heard after, October.
CAHGil lit ON
POLITICS AND LEGISLATION GO
ING SIDE BY SIDE IN THE NA
TION'S CAPITAL.
THREE BIG PARTIES ARE BUSY
Progressive-Republican Leaders Hope
ful Hllles Will Caff Rehabilitation
Convention and Democrat Believe
It Would Help Them.
By GEORGE CLINTON.
Washington. While the tariff de
bate is oa in the senate the represen
tatives of the three- political parties
have found time to get ready for the
next campaign. As a member put it
today, "we are to have politics and
legislation side by side for some time,
for it seems likely that the day of
short sessions ot congress is forever
ended."
Politics Is nearly as lively In Wash
ington now a it was a year ago when
every candidate for tbe presidency,
Republican and Democratic, had open
headquarters- tn this city. The same
men in part who were conducting tbe
campaigns of a year ago are stiff at
work ' in party headquartenr fn this
city. For the most part, however, it
is the subordinate headquarters hi en
who are in charge, for the chief t
ganizatlon officials Just now ha-ve too
much to do to legislative matters to
give any great amount of time to
headquarters'" work.
The DemocratB, the Republicans and'
the Progressives ail are keeping "open-
house" in Washington, and already a
considerable amount of campaign m ar
terial is being turned out One of the'
chief efforts of some of the Republi
can party's leaders- today has to do;
with the campaign to induce the- Re
publican national' committee ttt call' a
.convention of the party for rehabillta
tibn purposes in the late fair or cer
tainly In the early winter. Since the
executive committee- of the Republi
can national committee met here some
time ago and authorized the chairman
to order a meeting' of the full' com
mittee within sixty days after the ad
Jburament of congress, the progress
siv5-RepublIcan chieftains who want
to make sure that Chairman Clrarleu
D; Hllles wljl call the c6nvention have
been execeedingly busy in a mission
ary way.
Convention
Seems Likely;
It Is said by some men who are-
close to the progressiveRepublican
eaders that the promoters of the con-
ventfan plan are much more ' hopeful'
today that the chairman "will' issue" a
call for the gathering than they were
a month ago. There are things which-
may account for this renewed1 hope
fulness of the progressive-Republicans.
In the .first place, it was known that
much of the opposition to the conven
tion Idea was based on-the fear of the
old line Republicans that if ' a-conven
tion were called and the progressive
Republicans were found to be -in con
trol of it, the old liners might be com
pellfed to submit to the- adoption of
some-kind of a platform of ' principles
wbica would commit the -reorganized'
party to some things for- which- the
men- known as regular- Republicans
would not be willing to stand:
It is rumored now that if tfce Re--
publican national committee will' con
sent to call a party convention-, the
progressive-Republicans- have prom
ised" not to Insist upon-, anything- ex
centr a change in the party-represent
tatlon from the southern states, an
endorsement of the primary prihciplte:
and' a rule that all delegates having-
officially authenticated' credentials to
conventions,' shall be seated' without
dispute. If the--, progressive-Republi
cans have agreed' to this, as rumor
has-.it they have? it seems to be virtu
ally- certain that- Chairman Hllles- of
the national committee by the-consent
of the members- will summon a con-
vention and that it may be held1 just
before the convening of the next regniK
lar session of congress in December:
Pleases the- Democrats-.
Democratic leaders say that they
hope that the Republicans will calT a
convention and' will try to patch up
their differences. No Democratic lead
er believes, apparently, as-- it is per
fectly. naturaT he should not beEevey
that the opposition organisation can-
patch up . a- peace. The Democratic
leaders say that such a conventio-jf by
its acts only would accentuate the dif
ferences between the two wings of the
party and sim-ply will aHenate farther
from out-rfgfrt Republicanism the Pn
gressives who formed a new party last
year and who, accordingr to- the Demo
cratic belfef, will still insist pon go
ing their own way.
The progressive Republicans, how
ever, seem to think that the Progres
sives can be brought back into the
fold if the old convention methods are
done away with and if there seems a
itrong probability that the principles
for which the Progressives stood are
tQ be adopted by the Republican party:
The Progressive? party" s leaders in
Washington say that there can be no
thought of amalgamation .with the old
er party unless that party adopts ew
ery one of the Progressives principles,
rids itself of the bosses, anct agrees
to become progressive in name.
Tariff Bill Move Slowly.
Finally the senate has settled down
io start th last stage of the tariff bill's
journey. Members have admitted that
the course of the tariff thus far haa
been followed at a tortoise pace, and it
is believed from what is said, by the
senators especially, that it. will be
pretty tate in the summer before the
bill goes to conference.
TX7Kn .4 ..-... 11. v. ..'..iv i m.
' " , J , u "
I mui hiuuu as uiaiij. jrccuB lif 11 tj w us
J J the last leg of. its (journey. The quea-
t? naturally arises, to the cenntrr to
hav a fifth bill in a fifth, or at the
iurtfctst, a iith sumnJ? It all de
pends, so tha members eay, upon the'
success before the country ot the.
measure now alowly moving on to the
place where It,, will receive the afgna-'
ture of tbe president of the United!
States. ... AH kinds of dire happening;
have been predicted if the present WT1.;
should become tbe law of the landV
and also all kinds of supreme happi
ness have been predicted if the bilr
shall become the law.
The Democrat in house and senate;
or at least those ef them who at heart
are for the measure, say that it win'
fulfil the soula' desfre ot the men and!
the party who are responsible for its--framing
The Reptf&IIcans,. and even
some off the progressive Republicans,
say , that the measure', ff It passes,
means disaster. The Progressives, the
members of the new party in '.he
house and tts one menrtter In the sea
ate, say that -bo tariff legislation
which can stand the rear test ever
will be passed until a' Dusfnes "com
mission is appointed ttr study condi
tions and to make a report frem a
commercial standpoint upon1 what tbe
rates - of duty should be: These- a e
the varying Washington opinion on )
the prospects fbT success1 or fato-rw
of the present tariff bill.'
Quick Action a Dream;.
It is now getting well on toward t
second summer month, and' the sew
ate fs still at the tariff: President
WfTson hoped, and' said" He hoped,
that tariff legislation' wouldl be; ready
for.&is signature" by Independence
Day. Members and 'senators said; they:.
hoped1 the same thing, but' it is defi
nitely known that" there " were- only a.
few ef them who? had' any thought
theit- hopes were to be realized.' How
slbwr has tariff legislation dragged"
along- fts course??' It has- been no
that are past, but it'was thought' that'
because of the material' which the
waye and means committee of' the
house and the .finance committee- of
the senate had at their' disposal, and'
because, of the long drawn-out discus--sions-
of recent years, this year's ac
tion might be expedited.' If seems -to
have bevin an elusive belief."
It is believed that before-the-sen--
ate gets through with " the - bill and ;
brings it to a final vote-, several -sen
ators' will speak for two and three-
days at a stretch upon those matters
which- thy think are particularly vital
to their constituents. Republicans
and- Democrats alike say It- is not
likely that any of the long drawn out
speeches will -change a single vote.
but it seemingly is the intention of
the senatars, nevertheless,-- to.speak-at
lengthi President Wilson., wants : to
go to Panama in August, and 'then he
wants to go to his recently leased
summer home in New Hampshire.
Some- of the senators say that the
president will be lucky if he gets to
Panama in September and to-his New
Hampshire house in October, but then i
cms may oe tne very darkest view- or
the delay which is in store.
"Sob" Wooley's Job.
Some candidates for office InnWashn
ington. have troubles to get positions, .
even if the president of the United '.
States- h on their side and is - willing.,
tdj give; t&em place. The senate oc
casionally is a big stumbling block. in-,
the path of ambition.
Robert R. Wooley wanted ; too be
made an assistant secretary.-of the
treasury; and was not, but was given-
the' placa of auditor for the interior -
department in the office which-: has
Franklin: K. Lane as its chief. ' "Bob'.'
Wooley, jrobably is entirely, satisfied!
.with1, his- position, for it. is a goodjone.
and he will perform its duties as well :
as he has performed newspaper: and.
other-dnfles in his time, .whJchhmeana .
that he- will do his work; exceedingly
well.
When; the Wilson -administration
came into being, it va& understood t
Jthomugaly that Wooley was to be ap-
: pointed: as one of the assistants to .
Mr: McAdoo in the treasury, depart-
'ment. It may not be that. Wooley was
aa aurt? as the president- andi his'oth-.
;et friends were that he would, get the-
appointment. He did. not get it andi
this, was the way of; itt. Some few;
; years ago Wooley wrote; some magav
zine articles which werei not entirely.-
complimentary to several: United!
States senators, some- at whom are
still holding office.. It seemed to be
i thae general belief of: Washington per
sons who read the article that they
! were intended to do a- public service.
Senator Had. Memories. '
United States senators bave memo
ries like other people, and skins thin
ner than some ether peoe. It is-believed
that the long raemoried, thin
skinned ones let. Mt. Wilson kno-that.
in the executive sessLaa called to, con
sider nominations,, the personal, equa
tion would be? used to solve the probr
lem of appointment in a manner disas
trous to Mr: WofiUpy.
The president apparently did ' not
want an aiDpointiswnt of his rejected!
and so Wooley was made auditor of
the interSon- department, aid as the
position nvnafe quite as prominent a
one as teat fox which the ?jominee- or
iginally was . slated, no senator appa
rently used his influence to intervene
betwe.n the appointee anl his job. In
all tbe circumstances of the case, the
lUl.CJP.lUt WU P-UlUl B cauiiui vau
well satisfied with the outcome. It
was generally understood by Washing
ton correspondents t!at he had been
csade a sacrifice bocause he had elect-
1 ed to do hiB duty as a writer by the
public, and those who know him are
certain that In ortjer to get the. place
of chief secretary of the treasury, he
would not blot out one word from the
A-rtlla ha "hart written. .
The average map is sufficiently gai
lant tn mika a fool of himself juat to

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