Chapter 33 9. The first Board of Directors of the Federal Reserve

By his own admission later, Wilson was only allowed to appoint one Fed director; the rest were picked by bankers in New York.In the nomination and appointment of Paul.During Warburg's tenure as a director, the Senate asked him to answer questions before Congress in June 1914, mainly to understand his role in the drafting of the Federal Reserve Act, but he flatly refused.In his letter to Congress, he declared that if he was asked to answer any questions, it would affect his role on the Fed board, so he would rather decline the nomination to serve as a Fed director.The New York Times immediately jumped out to defend Paul. In its report on July 10, 1914, it accused the Senate of questioning Paul out of nothing.

Paul is naturally the core figure of the Federal Reserve system. Without him, I am afraid that there would be no second person who knew how the Fed operated. In the face of his tough attitude, Congress had to bow its head and propose a list of all problems that could be provided in advance. If Paul felt that some Questions affect his role and he can leave them unanswered.Paul finally obliged, but asked to meet informally. Committee Question: I know you are a Republican, but when Mr. Roosevelt ran, you became a sympathizer of Mr. Wilson and supported him (Democrat)? Paul: Yes. Committee Question: But your brother (Felix Warburg) supports Taft (Republican)?

Paul: Yes. What's interesting is Kuhn.The three partners of Leibo Company supported three different presidential candidates, of which Otto supported the old Roosevelt. Paul explained that the three of them did not interfere with each other's political ideas, because finance had nothing to do with politics.Paul successfully passed the congressional hearing, became the first director of the Federal Reserve, and later became the vice chairman of the board of directors. In addition to Paul, the four additional board members appointed are: Adolf.Miller, an economist, was born at the University of Chicago funded by Rockefeller and Harvard University funded by Morgan.

Charles.Hamlin, a former assistant secretary of the Treasury. Frederick.Delano, relative of Roosevelt, railroad banker. Harding, president of First National Bank of Atlanta. President Wilson himself nominated Thomas.Jones was found by reporters to be being investigated and prosecuted by the U.S. Department of Justice, and later Jones himself withdrew from the board nomination. The other two members are the Minister of Finance and the Comptroller of the Currency.