Part 12 (2/2)

I recall the conclusion of this interviehen it see driven the President from point to point, Mr Kitchin was the victor

There was no disappointrin evident in the President's manner as he faced Mr Kitchin to accept his defeat He met it in true sportsument the President literally threw up his hands and said, quietly, without showing a trace of disappointment: ”I surrender, Mr Kitchin You have beaten me

I shall inform my friends on the Hill that I was mistaken and shall instruct them, of course, to follow you in this matter”

I could crowd this chapter with siation

Never before was Mr Wilson's open-minded desire to apply in practice the principle of co of the important work in connection with the establishreat arch of the Deramme to set business free in America and to establish it upon a firm and permanent basis He aptly said to islation, he wished not only to set business free in America, but he desired also to take away from certain financial interests in the country the power they had unjustly exercised of ”hazing” the Democratic party at every Presidential election

Shortly after the Presidential election in 1912, while he was burdened with the responsibilities of the Executive office at Trenton, New Jersey, he began, in collaboration with that fine, able, resourceful Virginian, Representative Carter Glass, then chair and Currency Committee of the House, the preparation of the Federal Reserve Banking and Currency Act For hours at the Executive office in Trenton the Virginia Congressman conferred with the Governor of New Jersey over the preliislation For days the work of preparation was carried on, so that when Mr Wilson arrived in Washi+ngton to take up the duties of the Presidency, the Banking and Currency Bill was in shape and ready for i back over the struggle that ensued from the time this measure was introduced into the Senate and House, I often wonder if the people ”back home,” especially the various business interests of the country, who have been saved from financial disaster by this adislation, ever realized the painstaking labour and industry, night and day, which Woodrow Wilson, in addition to his other multitudinous duties, put upon this task Could they but understand the character of the opposition he faced even in his own party ranks, and how in thesurappled with this problem in the face of stubborn opposition, they would, perhaps, be willing to pay tribute to the earnestness and sincerity of this reatest constructive pieces of legislation of half a century Having given his heart to this important task, whose enactment into laas a boon to business and established for the first time in America a ”Democracy of Credit,” as he was pleased to call it, he relentlessly pursued his object until senators and representatives yielded to his insistent request for the enactment of this law, not under the stress of the party whip, but through arguht his counsel in this ladly accepted the President's invitation to spend the summer with him at the White House, where I occupied the bedroom that had been used as Mr Lincoln's Cabinet Rooned his fa that suood opportunity to see hiard to the Federal Reserve Act Never was greater patience, forbearance, or fortitude, shown by a chief executive under such trying circuress was being made, unexpected opposition would develop and make it necessary to rebuild our shattered lines, until finally the bill was out of the House and on its way to the Senate

Its arrival in the Senate was but the beginning of what appeared an alle The President's stalwart adviser in the Treasury, Mr McAdoo, was always at hand to rally and give encouragement to our forces, many of whom at times were in despair over the prospects of the bill The leaders of the opposition on the committee were Senator Root on the Republican side and Senators O'Gorman and Reed on the Democratic

It seereeht to the President by Representative Glass that the opposition of these gentle the bill The President up to this tireat odds, showed no iht by Mr Glass was the last straw Looking at Mr Glass, with a show of fire and in a voice that indicated the iot the votes in the co O'Gorman and Reed]?” Glass replied that he had ”Then,” said the President, ”outvote them, damn them, outvote them!”

Mr McAdoo came to the White House a few days later to make a report about the situation in the Senate, with reference to the Federal Reserve Act

His report was e of the bill He said that his information from the Hill was that the leaders of the opposition in the Senate were bent upon a filibuster and that the probabilities were that the Senate would finally adjourn without any action being taken on the Federal Reserve Act

This conversation took place on the White House portico, which overlooks the beautiful Potoinia It was one of the hottest days in June, a day which left all of us ere about the President low in spirit Only those who know the depressing character of Washi+ngton's nificance of this statement The President on this occasion was seated in an old-fashi+oned rocker, attired in a co Palm Beach suit Mr McAdoo reported the situation in detail and said that, in his opinion, it was hopeless to try to do more with the bill: that an impasse had been reached between the Senate and the House The President quickly interrupted Mr McAdoo, saying, with a smile: ”Mac, when the boys at Princeton caaaentlee a postponeton weather, especially in these days, fully agrees with me and that unless final action is taken on this ress in extraordinary session to act upon this ht to the Hill by Mr McAdoo, quickly did the job and the bill was soon on its way to the White House

Mr Wilson conducted the conferences in this ood temper diametrically contrary to the reports sedulously circulated for political purposes, that he was autocratic and refused to cooperate with the islation in which the whole country was interested

We have only to recall the previous atteislate upon the currency question, especially the efforts of the Harrison and Cleveland administrations, to understand and appreciate the difficulties that lay in the path of Woodrow Wilson in his efforts to free the credit of the country froislation to enactment Previous attempts had always resulted in failure and sometimes in disaster to the administrations in control at the time The only evidences of these frequent but abortive efforts to pass currency legislation were large and bulky volus of the expensive Monetary Commission that had been set up by Senator Aldrich of Rhode Island As an historian and man of affairs, Woodrow Wilson realized the difficulties and obstacles that lay in his path in atte to refornitude of the task which confronted him He moved cautiously forward and pressed for early action at the first session of the Congress following his inauguration He realized that with the passage of the tariff legislation, which always acts as a business depressant, it was necessary at the same time to have the stimulus the Currency Bill would afford when enacted into law The split of '96 in the Democratic ranks over the money question was an additional reason for cautious and well-considered action if the Federal Reserve Bill was to become a reality

The presence of Mr Bryan in the Cabinet and his well-known views on this question were strong reasons for watchful and careful prevision It was obvious to Mr Wilson from the outset that insurmountable difficulties lay in his path, but he brushed them aside as if they were inconsequential

In the Co and Currency, in both the Senate and House, were ht that his radical views on thepoint for opposition to the President's plan for currency reforonism were doomed to disappointment and failure, for while it is true that Mr Bryan found serious objections to certain parts of the bill, when these were elienerous fashi+on and remained with him until the Federal Reserve Act was made part of the law of the land

It was in a conference withand Currency Coentlemen of the Senate and House He had invited the De and Currency Committee to confer with him in the Cabinet Room in the White House offices From my desk in an anteroom I heard all the discussions of the bill There was full, open discussion of the bill in all its phases at this conference in which were collected the conservatives of the East, the radicalists of the West, and those who came to be known as the ”corn tassel” representatives of the South, all holding widely divergent views and representing every shade of opinion, soonistic to the President's views Some of the members were openly hostile to the President, even in a personal way, particularly one representative from the South, and soracious to the verge of open insult It was an exasperating experience, but Mr Wilson stood the test with patience, betraying no resent to every query with Chesterfieldian grace and affability, parrying every bloith courtesy and gentleness, gallantly ignoring the unfriendly tone andhi his personal feelings to the important public business under consideration, until all his interrogators were convinced of his sincerity and fair-racious bearing

It was clear tooccasion that in the cause he was defending he saith a vision uniment unclouded by prejudice or prepossessions, far beyond the little roo needs of a great nation labouring now under a currency system that held its resources as if in a strait-jacket He saw in the old monetary system which had prevailed in the country for many years a prolific breeder of panic and financial distress He saw the far of Eastern financial interests And thus, under the leadershi+p of Woodrow Wilson was begun the first skirreat battle to free the credit of the country from selfish control, a movement which led to the establisher or possibility of financial panic

There was an interesting incident in connection with the handling of the currency legislation that brought about what threatened to be the first rift in the President's Cabinet It concerned Mr Bryan's attitude of opposition to certain features of the bill as drafted by the Banking and Currency Committee of the House My connection with this particular affair arose in this way: In the early stages of the discussion of the Federal Reserve Act, and while Mr Glass's coer from the White House informed me that the President wished to confer with me in his study As I walked into the rooeneral attitude and expression that so serious was afoot and that he was very ins to look as if W J B [he thus referred to Mr Bryan] and I have co of the ways on the Currency Bill He is opposed to the bank-note feature of the bill as drawn We had a long discussion about the hly kindly way Mr Bryan informed me that he was opposed to that feature of the bill Of course, you know, W J B and I have never been in agreement on the money question It is only fair, however, to say that in our discussion Mr

Bryan conducted hienerous way, and I was deeply touched by his personal attitude of friendliness toward ht not be e to resign and leave the country and make no public criticism of the measure In theto any one about the matter until he has a further discussion with me”

The President then frankly discussed with nation of Mr Bryan The President suggested that I drop in on Mr

Bryan very soon and if possible casually invite a discussion of the Federal Reserve Act, telling Mr Bryan of his [the President's] interests in it, and how much he appreciated Mr Bryan's personal attitude toward him

I realized the seriousness and delicacy of the situation I was asked to handle, and, being on the friendliest terms with Mr Bryan, I telephoned hian Mansion, a beautiful place in the northwest part of Washi+ngton I found Mr Bryan alone when I arrived We went at once to his library and, in a boyish way, he showed raphed for him only a few days previous As we stood before this picture Mr Bryan gave expression to his sincere admiration and affection for the President He related, with deep feeling, how much Mr Bryan had enjoyed his contact and official companionshi+p with him and how he had come to have a very deep affection for hian the discussion of the very thing the President and I had conferred on only a few hours before He freely discussed his differences with the President over the Federal Reserve Act, and asked me the direct question: ”Who fro this bill with the President? I am afraid that so too much the view of Wall Street in their conferences with the President on this bill”

I frankly told Mr Bryan that this ireat injustice to the finereform and that I was certain that the President's only intimate advisers in this matter were Mr McAdoo, Senator Owen of Oklahoinia, and that I personally knew that in their discussions the President never argued the point of view of the Eastern financial interests Mr Bryan was reassured by my statement and proceeded to lay before me his objections to the character of the currency issue provided for in the bill He then took fro all the Democratic National platfor upon the question of currency reforreathim, I told him of my intervieith the President and how deeply distressed he [the President]