77

Archibald Kains represented the San Francisco district on the Federal 

Advisory Council, although he maintained his office in New York, as 

president of the American Foreign Banking Corporation.

After serving as a Governor of the Federal Reserve Board from 1914-

1918, Paul Warburg did not request another term. However, he was not 

ready to sever his connection with the Federal Reserve System which 

he had done so much to set up and put into operation. J.P. Morgan 

obligingly gave up his seat on the Federal Advisory Council, and for 

the next ten years, Paul Warburg continued to represent the Federal 

Reserve district of New York on the Council. He was vice president of 

the council 1922-25, and president 1926-27. Thus Warburg remained 

the dominant presence at Federal Reserve Board meetings throughout 

the 1920s, when the European central banks were planning the great 

contraction of credit which precipitated the Crash of 1929 and the 

Great Depression.

43

Although most of the Federal Advisory Council’s "advice" to the Board 

of Governors has never been reported, on rare instances a few 

glimpses into its deliberations were afforded by brief items in The New 

York Times. On November 21, 1916, The Times reported that the Federal 

Advisory Council had met in Washington for its quarterly conference.

"There was talk about absorbing Europe’s extension of credit to South 

America and other 

 

 

countries. Federal Reserve officials said that to 

maintain a position as one of the world’s bankers the United States 

must expect to be called upon to render a good deal of the service 

performed largely by England in the past, in extending short term