Economics and the Public Welfare. Benjamin M. Anderson

the reelection of Warren G. Harding. Sound Federal Reserve policy might be desirable, but not unless it were politically popular. It was easy for Governor Strong to dominate such a man and, through him, the board.

      Governor Strong had no fundamental grasp of the problems of central banking. His statements in private discussion regarding his policies indicated that they were short-run policies and, at times, contradictory. But he had great personal charm. He had a dominating personality and he had a great deal of vivacity. Despite a tubercular weakness, he seemed physically vigorous and he seemed to have great social energy. His exact training was as a trust officer dealing with mortgage indentures. The head of one great New York bank said of him: “He has the best indenture mind in the city of New York.” The head of another great New York bank, after listening to a long monologue from Strong regarding Bank of England policy—Strong had just returned from his first visit to the Bank of England, where he had been received with great courtesy and enthusiasm and where he had been told many things—said, “The governor has learned many interesting things, and some day he will put them together right.” But he never did.

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      Strong dominated men when he could. All too frequently he could. But when he could not, he bore no malice and he kept pleasant personal relations with his critics.

      Those who see history only from the outside easily convince themselves that impersonal social forces are overwhelming and that individual men in strategic places make little difference. But this is not true. The handling of Federal Reserve policy by Strong and Crissinger in the years 1924-27 led to ghastly consequences from which we have not yet recovered. Competent and courageous men occupying their positions would have avoided the mistakes which these men made.