184

should not have been and as they never are at any bank board 

meeting in the world."85

__________________________

85 Carter Glass, Adventure in Constructive Finance, Doubleday, N.Y. 

1928

116

It was Carter Glass who had complained that, if a suggested 

amendment by Senator LaFollette were passed, on the Federal 

Reserve Act of 1913, to the effect that no member of the Federal 

Reserve Board should be an official or director or stockholder of any 

bank, trust company, or insurance company, we would end up by 

having mechanics and farm laborers on the Board. Certainly 

mechanics and farm laborers could have caused no more damage to 

the country than did Glass, Strauss, and Warburg at the secret meeting 

of the Federal Reserve Board.

Senator Brookhart of Iowa testified that at that secret meeting Paul 

Warburg, also President of the Federal Advisory Council, had a 

resolution passed to send a committee of five to the Interstate 

Commerce Commission and ask for an increase in railroad rates. As 

head of Kuhn, Loeb Co. which owned most of the railway mileage in 

the United States, he was already missing the huge profits which the 

United States Government had paid during the war, and he wanted to 

inflict new price raises on the American people.

Senator Brookhart also testified that: