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America's Money Machine

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Advent of Storm 83<br />

machinery manufacture-and Charles S. Hamlin, a Boston attorney.<br />

The Senate Banking and Currency Committee, after some reservations<br />

regarding his connections with the Boston and Maine railway, accepted<br />

Hamlin, and it also made no obstacle to confirming Harding and Miller,<br />

but it wanted to examine Jones and Warburg-Warburg because of his<br />

banking connections with the railway industry, but more because of his<br />

strong views on central banking theory.<br />

Warburg was promptly offended that the Committee had not required<br />

the other nominees to appear before it, and declined to present himself.<br />

President Wilson, equally offended at what he regarded as an impertinence<br />

on the part of the Senate, raised his hackles and announced his<br />

intention of forcing acceptance of his nominees.<br />

Jones, however, willingly appeared and made a spirited denial of his<br />

alleged disqualifications; the Committee nevertheless withheld confirmation.<br />

Wilson demanded the confirmation; the Committee remained obdurate,<br />

and finally broke with the President by rejecting the nominationJuly<br />

g.<br />

Wilson was now more determined than ever to obtain confirmation of<br />

bothJones and Warburg. At the same time Warburg, now more sensitive<br />

than ever, continued to decline to appear before the Committee.<br />

While this was going on, the press reported the front page news that<br />

the heir to the Austrian throne had been assassinated in an obscure city<br />

ofEastern Europe, in the realm of the little kingdom ofSerbia, where he<br />

had been making a state visit. Condolences were sent by the German<br />

government to the Emperor Franz Joseph on the death of his nephew,<br />

but the German Emperor, Kaiser Wilhelm, after it had been announced<br />

that he would go to Vienna to comfort his neighbor and war ally, made<br />

excuses to remain in Berlin. This allayed any uneasiness over the possible<br />

political consequences of the tragedy, and the affair passed over to the<br />

inside pages of the American press, or was ignored in favor of the threecornered<br />

tussle over Warburg's nomination.<br />

OnJuly 23, Wilson conceded defeat onJones and withdrew his nomination<br />

in a letter that the Times characterized as captious and one to "put<br />

him in the category of irritable and querulous losers." It added that "if<br />

he had had a cool headed literary adviser he never would have published<br />

the letter."ll Wilson had complained that the action had been made only<br />

by the minority Party members of the Committee aided by two majority<br />

members, and that it did not reflect the attitude of the Senate. However,<br />

the burden of Wilson's plea was that men should not be condemned<br />

merely because they belonged to the class of big business.

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