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that from the very outset, the Federal Reserve operations were "paper 

issued against paper", that bookkeeping entries comprised the only 

values which changed hands.

The men whom President Woodrow Wilson chose to make up the first 

Federal Reserve Board of Governors were men drawn from the 

banking group. He had been nominated for the Presidency by the 

Democratic Party, which had claimed to represent the "common man" 

against the "vested interests". According to Wilson himself, he was 

allowed to choose only one man for the Federal Reserve Board. The 

others were chosen by the New York bankers. Wilson’s choice was 

Thomas D. Jones, a trustee of Princeton and director of International 

Harvester and other corporations. The other members were Adolph C. 

Miller, economist from Rockefeller’s University of Chicago and 

Morgan’s Harvard University, and also serving as Assistant Secretary of 

the Interior; Charles S. Hamlin, who had served previously as an 

Assistant Secretary to the Treasury for eight years; F.A. Delano, a 

Roosevelt relative, and railroad operator who took over a number of 

railroads for Kuhn, Loeb Company, W.P.G. Harding, President of the 

First National Bank of Atlanta; and Paul Warburg of Kuhn, Loeb 

Company. According to The Intimate Papers of Col. House, Warburg 

was appointed because "The President accepted (House’s) suggestion 

of Paul Warburg of New York because of his interest and experience in 

currency problems under both Republican and Democratic 

Administrations."27 Like Warburg, Delano had also been born outside 

the continental limits of the United States, although he was an 

American citizen. Delano’s father, Warren Delano, according to Dr. 

Josephson and other authorities, was active in Hong Kong in the