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April 27, 1956. O* •' /7 c> H 4 4 J A M S 2jjf* • &j Mr. Jasies Warburg, & ^pcAr&^fi'.s woek before the S. nat€* Uoa~ aittea on Banking ae a witness against the Banking Bill of 1935. In vwrt Oj. tne poueibility taat his attitude aa b*.* taken as v * j '7' /. 5 i i > a i t i a . t of bankerw at? a elaaa*f'W-teenetient ♦ * / * _ .«arr: / i* : v - -■ maca^ae to tiisaasociate aymri^frem the position he has taken* _______ ____________________________________________________________________ ^ - U .n ^ f x However typical hie attitude nay be of that of t c N a York brokers, it by no a a n s fairly repres- nts the attitude of su-ny bankers out side of Hew York* It is true that oa« of the „>urpoues oi the Becking Bill is to less n the authority of banker^ to determine the Monetary >olicif;a of the country, but it should be emphasised that bankers at large have. had v r/ little voice in the det m i r a tion of such policies in the past. ?h group that ha?- exerted the predominant influence hat be on the He* YorK bf n se^.ltr* Warburg did not fiere to advocate a continuance of this situation in so ■any words, but a careful readiai ol his testimony leaver no question that that is what h had in aiad. Although he clriaed that he was not pleadin, for a bfens.ers* control of the people* s money* ho n v^rtheless Maintained that the Vf;w York Federal E< rve (lU'k Bank should net .rains its own policies, Jfcfl he hed th audacity to aeintain represented popular control of the p ojlefi Money. ^ c r t & U -/tccj Mr. Warburg sought to- d laer»41t the banking bill by suggesting that it tended to *undermine the? Am rican order* and was an ia.jortant stap toward Coraaunisa* I~tto n o»4 nig?-i^ ir, Warburg under- stanas by the *Am.rican order* the inalienable rignt of the Hew —£ft>+*> Xork baaksr^ to issue- aoiey t.nc to regulate the value thereof* Ma.it of us feel that *h* n trie Constitution gave Congress th* power to coin money on to ragulat th* vslu« thereof it aetnt «h&t it said, gii, I kaow of no higher authority as to snibt constitute* tile *&• rican order* than the Constitution itc If. lb** Warburg prof eases to btlisve fiat the power to control the m m e y o: the country la in any ea^e a useless power since, he maint las in offset, it is quite- impossible to influence bits aes. conditions by i flatlug or deflating aoney* Why, then, should he be so over defeating jublic control over soney? If he xereL.ed lays so aueh icuort- ance on who heu- the controlling i t surely aiu.t be because h*- knows j \aA J that the control of money it a real pov-.r for g?od or evil* P« rson- ally I would rather that this power be ex rcisnd by a public body in th. oublic interest than by the Hew York banking fret mity.
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