Me as a Landmark Book on mutual funds by Oxford University press early in the last decade. He followed it up with this book just last year, the unlikely reformer carter glass and financial regulation. The format today, matt is going to talk for however long, we have a few images to supplement his discourse and then you will take some questions, right . So come on up. applause id like to take chuck and the other people for having me here today. I live in cherry chase, maryland and i did not want to drive and look for parking space so i called a lift and they came within a minute. I was barely putting on a tie in learning how to tie a tie again. When i got in the lift as hes pulling away, i realize i did not put a belt on my trousers. I had visions here being on cspan with my trousers falling down. Luckily chuck and one of his colleagues brought me a belt. You are safe from that at least not for my speech. I will talk for 20, 25 minutes and then take some questions. Carter glass was a major figure in american history. A recent writer Richard Farley called him the single most important lawmaker in the history of American Finance. I think thats true, but very few people know about him today. I spoke recently at the Historical Society in lynchburg, virginia where glass is from, and no one in the audience knew anything about carter glass, but a lot of people were related to him. Thats what led me to my book. I want to say three things about glass to summarize my conclusion. Glass was a racist and a complete reactionary. He made his fame getting the virginia constitution amended at the turn at the end of the 19th century to prevent 95 of blacks in the state of virginia from voting. He was a democrat. He opposed 80 of the new deal. He was a total reactionary racist and he was that way in his personal life, he hated change and reform. He came to the senate in 1920. The senate then had an operator run phone system. If you wanted to call somebody you got the operator and you give here she the number. They switched on automatic where you could actually dial yourself. Glass insisted they go back to operator, and they did. Another example, he lived in which, virginia on weekends but was at the Mayflower Hotel in Downtown Washington during the week. He lived there for 25 years. He came in one morning to find out the mayflower had renovated its lobby and he left the hotel in a huff. He did not like any kind of change. Reactionary in his personal life and political life. Second point, he made a major exception in the case of laws dealing with finance. He not only supported but he authored three very important laws designed to curb the power of American Finance, the Federal Reserve act of 1913, the glasssteagall act of 1933, and portions of the Securities Exchange act of 1934. So, glass disliked and distrusted government. He disliked and distrusted even more wall street. The third point about glass is i think the most interesting. He like many others, like brandeis, believed that the way to deal with finance was not to attempt to regulate it, that regulation would always fail. Instead, the way to deal with financial power was to break it up, fragmented. So those are the three points about glass. General reactionary. Made exception in the case of laws dealing with finance, and third, believed the way to deal with finance was not through regulation but through fragmentation. Let me talk about glasss background. He was born in virginia two years before the civil war, 1858. Lynchburg was a perfectly southern town. There were confederate soldiers up in the hills around lynchburg. The union were running through lynchburg. His family like many southern families was devastated by the civil war and reconstruction. Glass had to stoppers education at age 14. He read shakespeare, english poets, greeks and romans. Glass was self educated and very well educated. When you went to work at 8 14, the started selling newspapers on the corner and lindbergh. He then became an assistant to the printer of the paper called a printers devil in those days. Then a printer, then a reporter, then one of the editors at the lindbergh paper, then the editor and when the owner of the paper wanted to sell it, he wanted to sell it to glass. Glass was this great figure, young man in which bergh, so the owner arranged for other people in lindbergh with money to lend glass the money to buy the newspaper. Glass was an extremely successful publisher of the lynch bird news. He bought the other morning paper. He bought the one afternoon paper installed you presses. He wrote editorials dealing with everything from belinda case in france to reconstruction in the United States. He made, for that time in that area, a lot of money. Like a lot of successful Business People, he decided to go into politics. There was only one party to be in virginia then, the Democratic Party. He became a democratic politician. He was elected to the state senate and made his fame. Virginia was doing its constitution and like all the Southern States, they were trying to find a way to not give black civil rights in the right to vote. Glass was a guy who came up with a formula in the virginia constitution that prevented most blacks and a lot of whites from voting. Believe it or not, that made glass a hero to white virginia. He was a big figure in the state, so he was elected to congress in 1902. Glass is now in congress in 1902 as a democrat and he might as well not be there because republicans had firm control of the national government. Teddy roosevelt was in the white house. Both houses had overwhelming republican majorities. So democrats, like glass, were pretty isolated. He wanted to go on the Foreign Affairs committee. He did not get that. He was put on the house Banking Committee. He had no background or interest in banking and thats where he was put. Glass, always a conscientious driver, who read every article and book and could speak to people about banking finance. He educate himself on finance just as he had on shakespeare and the english poets. At that time, beginning of the 20th century, the United States was the only Major Industrial country in the world that did not have a central bank or similar mechanism to control the currency or address financial panics. England had the bank of england. Friend, the bank of france. Germany, the bank of germany. There was no such entity in the United States. A few Business People and intellectuals worried about this but nobody paid much attention. The economy was doing well. Teddy roosevelt, the president , found banking very boring, which i agree with him. So nobody dealt with banking issues. And then comes the panic of 1907. The worst financial panic this nation had until 1929. A number of banks and trust companies in europe fail. They threatened to bring down Brokerage Firms, Insurance Companies and the New York Stock Exchange. The city itself. There is no federal, there were no state entities that can deal with this kind of panic. We dont have a central bank or a similar mechanism. The panic has stopped were one individual, jp morgan, who had a small Investment Banking firm, wet around and raise money from his other friends on wall street, other banks and Security Firms, and they raised money and rescued a number of failing banks interest companies. The panic stopped. The economy came back. Morgan was kind of a hero. And suddenly, congress realized, we cannot go on like this. As one of them said, we are going to have panics in the future and we wont have jpmorgan with us forever. So there is more of a realization, amongst people who care about this kind of stuff, that we need Something Like the bank of england or the bank of germany. The Republican Party is in full control of congress, as i said, and they name a very powerful senator nelson aldrich, from rhode island, probably the most powerful republican center. I cannot think of any one of that stature. To draft legislation to provide the equivalent of the bank of england or the bank of germany. Aldrich assembles every expert he can think of in the United States. Businessmen, bankers, professors, students of finance generally. They go overseas, they meet with people in london, paris, berlin and they develop a model called the aldrich plan for a very powerful u. S. Central bank modeled largely on the bank of germany. Its going to be one main office, probably in new york city. Its not going to be government controlled. Its going to be controlled by private bankers. Its going to be a very powerful Private Banking organization as a u. S. Central bank modeled on the german central bank. I think, had aldrich and his colleagues introduced that plan in 1908, 1909, 1910, even early 1911, it probably would have gotten acted. We came out of the panic, there was a sense we had to do something. Aldrich had all the power of the Republican Party in the Business Community behind him but the republicans did not act. One gets the feeling that they thought they were going to be in power forever. They largely run the government since the civil war and probably they thought they would run it for another 50 years. So they did not do anything in those years. It wasnt until 1912 that aldrich introduces his plan in congress and by that time, the country had swung in a progressive way. The democrats have taken control of the house and the progressive republicans, they now have control of the senate and these democrats and progressive republicans, were not about to enact a conservative, private bank like aldrich was proposing so the aldrich plan died. The house is now controlled by the democrats. The ball is in their court. Who do they name to prepare their version of a central banking type bill but carter glass . They dont know much about him but he is probably the only guy, at least in the Democratic Party in the house, who had ever studied banking issues. So almost by default, glass, a largely unknown middleweight southern democrat gets named to devise the democratic plan. He comes up with a scheme very few people had talked about or thought of. He is not going to have a single, central bank as they have in england, france, and germany. Hes going to have series of Regional Reserve banks in 12 or 20 cities around the country because he does not want all finance centered in new york. He wants it scattered around the country. He wants a central bank in the richmond area in virginia to help farmers and merchants. He wants a bank in sacramento or San Francisco to help california farmers, merchants, and bankers, so he comes up with this Regional ReserveBanking System of x number of reserve banks. He realizes he has to have somebody on top of this to coordinate these dozen or 20 reserve banks, so he says i will use the control of the currency. He named the top federal banking official whose main job it is to authorize National Banks. If you want to get a bank charter at that time you went to the state or you went federally. If you went federally, this was the guy who oversaw the license. One author had a very good characterization. The aldrich plan was called the National Reserve association. Glass called his the Federal Reserve association. It was federal in nature. When glass comes up with this scheme, we do not know who the next president is going to be. Its early 1912 and we are headed towards the most famous election probably in american history, the 1912 president ial election because we have three major candidates. The republican president , William Howard taft, teddy roosevelt, who had been a republican president but now forms a Progressive Party and third, Woodrow Wilson, a democrat governor of new jersey. Nobody knows where glass comes up with this plan, whos going to be the next president. Turns out wilson gettable 40 of the vote. He is elected president. He and glass had never met but glass contacts him and goes to visit him and glass says, ive got a great deal for you. Ive come up with this banking scheme and glass and wilson kind of fall in love with each other. They are both southerners, they are both virginians, they are both races, they both dont like a strong federal government so glasses plan is just to kind of thing wilson would like and he does. He says, carter, i would like to make one change, i dont want to give the job to the controller to be on top. Why dont we have an independent board of disinterested people will sit on top of this regional system . Glass succeeds to this. So we now have a plan for a Federal Reserve system of 12 or 20 reserve banks in areas around the country under the general supervision of a board in washington, d. C. This gets presented in congress and all hell breaks loose. The republicans, most of them, conservatives, love the aldrich plan and this is complete harrison. From a country town in virginia who is proposing a Regional Reserve plan when aldrich had presented the greatest thing ever. 90 of republicans cannot wait to kill glasses plan. A lot of the democrats are from the south and the west. Anything with the name bank, they hate. Andrew jackson successor. So they oppose the idea of anything dealing with a national Banking System or federal Banking System. So there is complete fragmentation but glass is very clever, gets the bill through the house of representatives. Now goes to the senate, even though glass is just a congressman, he plays a big role in getting the bill through the senate. Its almost regarded as a miracle but on christmas day, 1912, Woodrow Wilson signs until all the Federal Reserve act. And glass, most americans dont know him, glass is a huge figure in American Finance now in american politics. A year before, nobody knew his name. Now he is a major figure expert on American Finance and american politics. An opening happens in the secretary of jugglery, so wilson names glass to become secretary of the treasury. A virginia senator dies and the governor of virginia names glass with a term in the senate. And glasses elected four more times. So there he is in 1920 as a United States senator. I ought to go back and say most interesting thing about glass i thought is he didnt believe in regulation, the Federal Reserve believes in fragmentation. The Federal Reserve act reflects that fragmentation. Instead of one central bank, all of germany, he has 12 Regional Reserve banks. Again, fragment economic power. Well glasses know senator, well respected. Hes on the cover of Time Magazine a couple of times. He is a big figure. And glass, like anybody else watching the country in the late 1920, notices the roaring stock market. The stock market is going up in 1927, 1928, 1929, and glass, like any other observers says, notices what is happening, his money from across the country is pouring into wall street so investors can buy stock on margin. There were no federal or state limits on how much you could borrow, just what a banquet allow so at that time in 1928, if you had 2000 dollars, you could buy 10,000 dollars of stock. It was a 20 margin around. That meant toughest off just one up another 2000, you double your money. It went from ten to 12 because you were very highly leverage. A lot of people did this. My wifes grandfather owned a farm outside of philadelphia. He put all his money into stock market on margin. My fathers older brother put all of his money in the market. Glass says where this money coming from . Its coming from all across the country. The bank in sacramento, or richmond, or wichita, is not lending to local farmers and merchants. The bank in wichita is lending to Chase Manhattan Bank new york, which is landing to meryl lynch, which is lending to its customers. Money is coming from across the country. John is a river of gold. A lot of money from across the country is pouring into wall street from margins, brokers loans. Glasses horrified by this. He is more horrified when he finds out that the 12 Regional Reserve banks are lending money for the local banks or lending that money to Chase Manhattan Bank or city bank and then tomorrow lynch and to my uncle and my wifes grandfather. So the system glass had created in the Federal Reserve act to prevent concentration in new york is now being used as a very efficient way to get that concentration. I think there are 12 reserve banks, 12 funnels make it easy for the money to go to new york city and glass is horrified. His whole Federal Reserve scheme designed to keep the money in localities has been dashed by circumstances. And glass jumps up and down, he goes to the Federal Reserve board, which he created and says, you ought to do something. They say, you know, its not a bad idea. Carter, it is a little dangerous, we have to think about it. They kind of blow him off. He gets up in congress, he writes editorials and he gets ridiculed and he has a few colleagues in the senate, republicans and democrats, he gets ridiculed by wall street and hires, in fact, a professor at william state lawrence and publishes a book in may of 1929 called wall street in washington, which calls glass and his colleagues a bunch of hay sees. Hes an educated country groups are making fun of the greatest Economic System in the world has ever created. They are just a seats. They are anti darwin, etc. We all know what happens. In 1929, october just what other than glass had feared, the stock market breaks, all kinds of people cannot make their margin requirements. They go bankrupt. They have to borrow money, people jump out of skyscrapers. All of a sudden the scream of money, we can see what happens when leverage reverses itself so there is devastation. Congress and from republican hands decide it have to something so this republican congress, guess who they name to write remedial logistician but democrat carter glass. An overwhelminglycontrolled senate, republican controlled senate, names to glassy democrat to have the committee. And glass starts preparing a bill to prevent this from ever happening again. His main concern as a fast river of gold so he puts provisions in his bill that limit how much a commercial bank can land for security speculation. How much they can land them by stocks, how much they can lend to Brokerage Firms how much they can lead to other banks. Second, he puts a total ban on reserve banks, the 12 reserves vying, letting two bags in their community for speculation. Glass addresses what he saw the big problem as and at that point, glass, i suspect was ready to go home. He was going to turn his bill, and hope to get it through congress but to other things come along and they are what we remember about this act called the glass segel act more than what glass started. One is deposit insurance. In the late 19 twenties and early 19 thirties, banks around the country, i think 5000 banks failed, mostly in farming and rural states. Thank in wichita go down. Cotton in the south, same story. So 5000 small banks failed there is a cry across the country for the government to ensure deposits that this wont happen again. Everybody in the country who had more than a High School Education thinks deposit insurance is the stupidest idea ever. President hoover, new york governor Franklin Roosevelt, carter glass, Federal Reserve board, head of city bank, everybody thinks its awful because you will be making the good banks that are run well, pay premiums to shore up badly run banks. So everybody says its just lawful. I had one quote and i was looking at my book the other day which i really liked. I am not going to find it. Here. Just before the inauguration, roosevelt comes in. So glass has to put deposit insurance in his bill to get the reforms he wants on restricting bank lending and reserve bank lending for speculation. He knows he has to have deposit insurance. He hates the idea, but he puts it in. Roosevelt is coming in just to be inaugurated, and he has to decide what to do. He told gardner, there is more work. The week banks will pull down the strong. Vice president gardner says to fdr, they are all down now anyway, the weekend is strong. You will have to come up with deposit guarantees eventually, captain. Everybody knows deposit guarantees will be a part of it. Thats the second major part of the glasssteagall act, deposit insurance. The third is what we know the act for today, though it was not a big deal then. What happened was, in the start of the 20th century, the big banks in new york city and chicago want to go want to expand from the banking business of making loans to underwriting and dealing in securities. But their lawyers, sherman, sterling, and the other lawyers read the National Banking act of 1864 and say it is illegal to do that. The banking act does not allow National Banks to deal in securities. So, they come up with a scheme. They create separate companies called security affiliates. They are tied to the bank in two ways. They have the same officers and directors as the bank. And second you get a stop certificate of city bank and 50 shares of security affiliate. In your drawer you have 50 shares a city bank, you get a letter from them, here is a replacement certificate you now bank shares and affiliate. Security affiliates become a huge thing in the twenties. All the big banks have them and at that time, banks can only do banking business in one state, their home state, but there is no geographic limit on their security affiliates. So the oddity is in 1929, city banks basically doing business in new york. Security affiliate is doing business in all 48 states. It is the biggest Security Firm in the country. The security of fillets have become the biggest Security Firms and engage in a lot of dubious practices. So an issue comes up, as glasses working on his bill, he did his limits on lending for speculation. He got stuck with deposit insurance. Now what should he do about security affiliates . Glasses first bill provided they would be regulated, National Bank affiliates would be regulated by the control of the currency and state banks that were part of the Federal Reserve systems, their affiliates were regulated by the fed. That is glasses first bill. The second bill introduced a year later takes a very different approach and outlaws securities affiliates. Banned banks from being affiliated with securities firms. I did a lot of research and i was trying to find out what drove glass to make this change. One rider, ray molly who was fdrs one of fdrs advisers said glass always wanted to do this. I dont know if that is true but if you made a change, why did he change . I did not find a clear reason but i will give you a number reasons i think that added to it. One is back in 1907, the same year that glass was given a job of creating the Federal Reserve system, another committee of Congress Call for certain financial reforms and one reform they call for was banning securities affiliates. So there was precedent in the Democratic Party not to allow security affiliates. Second, glasses first approach was regulation but remember in the 1920s, he had gone to the fed, gone to the regulators, so this awful thing is gone on, all this money is being poured to speculation. You can do something and they blew him off. Glass was not exactly a great believer in the efficacy of regulation, i think. Third, when the fed testified before Glasses Committee and he said, what should we do about security affiliates the feds gave the cup following kind of answer. If we could do it all over again, we would not have them but its very hard to and scramble. If you want to get rid of them, here is some line which you can use, if you want to. That was not exactly a ringing endorsement from a regular of a regulatory approach. Then as glasses probably teetering as to what to do, to related events happen that force him to go for separation, abolishment. One is a major bank of new york. Bank of the United States fails. It is not a wall street bank, it is a bank for immigrants, it has the misleading name bank of the United States so a lot of immigrants put their money in it thinking its part of the government. It fails and i had 59 affiliates. The really real estate affiliates, not security philly its, but now the headlines in new york city are full of bank of new york with affiliate fails, leaving 200,000 depositors bankrupt or destitute and so the word security affiliates is a very bad sound. Second, that leaves the banking commissioner of new york, joseph broderick, to introduce legislation in the new york legislator to ben state new york state chartered banks from having security affiliates. The most powerful financial state in the country is now proposing to get rid of affiliates and glass follow suit. I think these different elements, the early democratic called to get rid of affiliates, glasses dealings with regulators in the twenties. His unhappy dealings with them. The bank of the United States and the new legislator caused glass to move to separate to require banks to get rid of the security affiliates. That is what we remember blasts eagle for today but it had a lot of provisions, deposit it shirts and so on. So glass gets his bill done and just remember back in 1912, he presented president wilson with a draft of the Federal Reserve act. Glass now goes to Franklin Roosevelt was about to come in and gives him a draft of the glass segel act and has the limits for lending speculation, deposit insurance, banning bank affiliates. Roosevelt hesitates because, he like everybody else who is educated, thinks deposit insurance is a terrible idea but eventually events caused roosevelt to support the glass seagull act. So that is the second major accomplishment of glass and again, it reflects his belief, i think that fragmentation is a better way to address things and regulation because the glassy lap instead of performing for the regulation of Bank Security affiliates provides further abolition. The third act moves us away from banking. Third act in which glass played a major role to the securities. When the new deal comes in on its list of reforms are dealing with the securities markets. In 1933 in the first hundred days, the same period when the glass eagle act was signed by roosevelt, they enact the securities act of 1933 which says a new issue of security like lifter who were, when there issued new security, had to provide full and fair disclosure for investors. That passes without much controversy towards the first hundred days, the dream period of the new deal, wall street does not like it but it has to swallow it and the regulator, the new deals pick, to administer the 1933 act is the federal trade commission. That had been an agency created in the Wilson Administration to deal with Business Practices and generally. It was full of liberals who hung out during the twenties hoping democrats would come back into power. It is a large agency for liberals and it gets the 1933 act. 1934, the Roosevelt Administration want to take up a second part of securities regulation that is where they name stockbrokers and the New York Stock Exchange. The New York Stock Exchange in and was a very powerful institution. I dont know if we have anything comparable today. It was powerful economically, politically, socially. It was a very Strong Institution and the new deal is proposed to regulated. There are a lot of fighting about what that regulation looks like. Its also who should the regulator be . The new deal or say, but we won is the federal trade commission. Its already doing the 33 act and then you Stock Exchange says, no, we want a new Specialized Security agency to regulate us and stroke brokers because we think we need real expertise. New York Stock Exchange thinks it controls you agency. So the new deal bill is put in and it provides that the 34 act regulating the Stock Exchange brokers is to be regulated by the federal trade commission and authority over margin, how much you can borrow to stop in the Federal Reserve board. Glass, who had not been involved in securities matters, goes ape. He goes crazy for two reasons. He does not want the fed having anything to do with the stock market. He does not want the feds to have margin authorities and he does not want this big agency to have power. He wants a Specialized Agency with securities knowledge to regulate and to margin. Roosevelt wont back down and this is 1934, the height of roosevelt power and there is a fight in the Senate Banking committee between roosevelt and the new dealers on the one side and glass on the other and by a tenth to a vote, glass winds. They vote against roosevelt to create a new agency. The securities and Exchange Commission to regulate securities activities and margin. Later on, margin gets dropped, goes back to the fed but in this kind of unexpected vote, we again see glasses fragmentation approach. Rather than give new authority to the federal trade commission, lets fragment Government Regulatory Authority and that have a Specialized Agency to the Security Exchange committee. Those are the three acts i wanted to talk about. The Federal Reserve act of 1913, the glass eagle act of 1933 and the portions of the Securities Exchange act of 1934 for the sec. They all reflect glasses approach. Another thing about these was, theyve all been amended overtime. Theyve all been amended but they are largely in shape today as they were and still form the foundation of the American Financial system. The Federal Reserve act was amended in 1935 to increase the power of the Federal Reserve board and decrease the power of the Regional Reserve banks but its basically the same system that glass propose. A federal, not a national Banking System. Unique in the world. Its 90 of what glass first proposed back in 1913. Second, the Securities Exchange act of 1934, creating the sec. Every year, every time there is a new election, new president comes in with a new administration, they always have a book of reforms and one of the reforms as to get rid of the ssc. There are too many agencies. We have 13 agencies in finance. They are going to be rolled into one agency or combined. The ssc it is never happened. There have been a series, double dozens of call for this but the ssc today is still the independent agency that glass invasion in 1934. The glass eagle act, though we know what happened, first the fed and then congress got rid of the provisions banning bank secured affiliates. That is a major change in the glass seagull act. Today, banks to affiliates, engage in all types of securities activities but the other provisions of the glass seagull act deposit insurance, limits on bank lending for speculation, prohibitions on Federal Reserve banks lending for speculation are there today. So the kind of Regulatory Framework we have is 80 or 90 of what glass envisioned so many years ago. The last thing i will say is since the second world war, we moved away from glasses fragmentation approach. Instead, we have enacted one left to another proposing more and more regulation on the Financial System. When glass is starting congress, we only had one federal regulator, financial regular, that controlled the currency. I think today there are 13. The last act we had was the excuse me i should say in 2010, which shows you the regulatory approach of a full pedal down. This one act, 840 pages. It directs regulators to adopt 243 new rules and 267 major studies and prepare 20 to reports. This is the anti glass approach on steroids and yet, when you see people in the Financial System and regulators, they also is not going to work. We are going to have an financial crisis and probably frank will not prevented and help soften it. I can give you a list of quotes from people but here is the Inspector General of treasury, neil brought he said quote, we had a system that was broken and a fundamental in the system has not changed. The question is not if the u. S. Faces another financial possession or its when. We have a system more regulation, more concentration but people are dubious if its going to work. For that reason, a number of people, john mccain, bernie sanders, elizabeth warren, have introduced legislation either to the prohibitions or increased him by saying not only are we going to separate banks and Security Firms but back from asset managers. You cant be a bang can also manage Pension Plans are mutual funds. Other people have introduced legislation limiting the size of banks but no u. S. Bank in more of 3 u. S. Deposits. Now these things have kind of gone dormant now but i will bet a huge amount of money that if we have any kind of financial crisis and the next year before the election, lets say, these will come out of the medicine cabinet and we will hear again and restore glass segel meaning these prohibitions. The last thing i want to say is a little bit off base but that is the Current Events about the Federal Reserve board. You know President Trump has calls for firing. Since you want to fire powell because he does not like the feds policy on Interest Rates. His legal dispute whether he has the power not but i was wondering what of glassware to come back today. What would he think about a president who threatens to fire the chairman of the Federal Reserve board . Will glass was big on federal independence and i will tell you how it comes up. When the Federal Reserve was created in 1913, it was to have five governors appointed by the president and the secretary of treasury and the controller of the currency. In 1935, these two government officials were moved and glass wanted them to move. You only want to people appointed by the president. I think was five for five and way to hundred 35 pounds but it was very feisty. In 1933 he got into a fight off the center floor with senator huey. A famous center. He was twice a size. Line i think was 37 years. Old glass was 75. Im glad, within the side of other senators, threw a punch at huey long. So i think of glass we wanted to trump today and were talking about firing jerome powell, trump might get a black eye. With that, i leave you. I will be happy to take your questions. Thanks applause . Yes, sir. Im assuming what happened with the new deal . inaudible glass went crazy, he thought it was all illegal, he opposed almost everything roosevelt did. And they were at odds constantly. There was a short honeymoon period. They like each other personally, i think. They reached amused if thats the right word by each other and the each were afraid of each other. Each of them had a power base that nobody could overcome. Roosevelt was very popular in virginia. He carried the state four times. Glass and harry bird controlled virginia. Glass at a lifetime job in the senate. So glass would oppose a lot of roosevelt did but they never went to the math on it. I think he kept a lot of his hate of the policies to himself. So they had this relationship. A lot of people have written about this in my botox about different theories. My theory is they were both very good politicians in the admired, that they may have hated the guys policies but they admired each other and kept their distance from each other. Yes . inaudible the glass of any participation in the famous Jekyll Island meetings . No. Im sorry, how you describe a little bit that just died because it took too long, the entourage plan bag with the joko hyde meeting. How did this guy which is kind of earliness political career at that point, get the political mojo to kind of go to wilson and develop this alternative plan. Both good questions. The first question is easy to answer, Jekyll Islands when all drudge was starting to develop, and just taking his time, some of the bankers in new york got impatient because he was playing with theories, and he said lets all get together will have a secret conclave, we all go duck hunting on this island off georgia. Wherever it is, and we will go down there for a weekend we will come up, will draft something, and that is what happened. That is where the alters planned front kind of got finalized. Nothing to do with glass. Glass comes out of nowhere and i think, as i tried to say. I dont think anybody knew he had this. They had nobody else. The party had not been in power for long, there was nobody with expertise or finance, they were all republicans. Glass is just on his own studied these things so i think he just saw the opportunity and took it or they gave it to him they could sense, he develops the plan in the house Banking Committee and then presented to wilson but there was nobody else. I think there was an absence of any other democratic banking guru. That is a very good question. Thank you. Yes, sir. Back there. I was put on the speech but im very curious, what was the formula that came up within the virginia constitution . They did a poll tax and a literacy test. Its Something Like you had to pay, im making this up but you had to pay a dollar a year for three years so you could vote on the same day. You have to remember to pay not only that you had money but you had to give it on a certain day in the understanding clause was that they could bring in citizens and you could not get the right to vote and so you could answer the examiners and what is the Second Amendment say. How does impeachment work . They were asked questions. It was a combination of pull tax and so the understanding closs that was what glass put together. It was done in other Southern States but he was kind of a leader, if one can use that word of this. Yes, maam. Thank you for wonderful presentation, so you describe the glass is a self educated and supposedly, he has a tremendous type of philosophy so i think way back in the constitution is all one piece of paper, but is so rich. And people had some kind of integrity to follow to do something right. But now im thinking that they had to have so many pages that usually people dont understand it and they dont even read it. Now we have the Interest Rate is just all a variation from the competitive markets. So somehow it is wrong. And Financial Institutions, whoever appointed to be official there, is influenced by some kind of corrupted system in a sense. Your question is . My question is how the system change when its so corrupted and nobody can really change . It today . I dont know. Thats way out of my pay grade but i think if you ask those people, wilson and glass and brandeis in 1913, they would say the system is pretty corrupt. That is what drove the Wilson Program of the new freedom, and the glasssteagall act was part of it. Tariff reduction was part of it, i think they thought they were doing with a pretty corrupt system. It was run by wall street. The banks, the Central Banks and every other country will run by the financiers. But i think they probably would have the same optimism pessimism. Gary . Nice job. Thank you. One question on the regulator side and one of the anti regulation. Were there origins in glasses mind or his activities for what today we call risk based capital or even before that just normal ratios of capital for banks . And second, was at some point in the earlier years did the idea of going offshore with Financial Institutions basically just stay beyond the waters of u. S. Banking regulations, did that habits origins in this period . I dont know the answer to ratios at all and im unaware of any talk about going offshore, which i always during my lifetime i had that i thought it was completely. Completely made up. People who wanted who oppose regulation would just say the next drop of regulation, they would give a list of horrors. Never happened. , you know, i didnt hear any of that. They did say that grass, in the 1933 acts that grass will grow on the streets of wall street. That was a quote from allen dulles. The offshore thing and never heard of. Yes. Along that time, the federal Credit Union Act was passed. Fha was created and it was created around that time. Around what time . The 1930s. With that have gone through the house Banking Committee . Were glass by then it was a senator. My guess is he opposed it. My guess is he a post, believe or not, somebody has done a study, of the 70 new deal loss, he opposed 81 of. Then he probably opposed almost everything, heat you can bet he probably a post fha. Certainly if anything at a social bent to make it will better for people, glass was probably a post. He was honest. The best quote i had, somebody said how did he react to the Gold Standard . When roosevelt first came in, the banks for failing all over the country. A bunch of states close their banks. And roosevelt ordered all the banks in the United States to be closed and glass said, wrote to a friend, the president of the United States has no more right to close every banking United States than my stable boy. Glass was always, he played country. Racial tinge there to. But i bet he oppose most other things. I dont know. You why did he oppose what wall street was doing before the crash . Was he against speculation in general . No, he wrote a New York Times editorial, letter to the editor, which said if i could find the page, he said i dont care about speculation but its using the Federal Reserve system for reasons i never intended. Thats what he wrote and he was proud to Federal Reserve with his baby and he created it with certain things in mind. Largely to get money to local communities to local merchants and bankers. Not to be used to the wall street. But i dont think speculation bothered him as much as the fact that the system was being used for purposes he had not intended. Im understanding of this is that even though it creates a new Governmental Agency it is really giving a lot of responsibility over the Financial System so the financial players themselves. It polices a lot of faith in the New York Stock Exchange as a self regulating entity, puts a lot of faith in brokers to fulfill the information disclosure. Whereas, you have these other models from the states in the early 20th century that were maybe more paternalistic in terms of what kind of securities get offered and stuff like that. Im curious where glass fell on that idea. You i never looked into it but my recollection is they werent thinking about that. The New York Stock Exchange did not want anybody. If you asked allen dulles and George Witney in 1933, do you want an act to regulate securities . No. Do you want an act to regulate the brokers . We dont need it. I dont think they were thinking about whether there would be heavy direct regulation or delegate to the regulated. Ive never seen anything on that. A lot of that unfolded over time. The better remember much talk about suffering you lay shun. Me at that point. Yes, maam . Thanks for taking a second question. Do you glass participate much in the post world war 1 pm deliberations among all the great powers with regard to the whole german reparations . Not that im aware of, no. He didnt really deposit him self as an economist . No. Ive never seen any reference to that. He was a strong supporter of wilson and the treaty of versailles and u. S. Entry into the league. In fact, probably what drove glass most knots if i had to bet, was a guy at princeton professor lawrence and others, who allege that glass opposed, that glass was an isolationist or whatever the word is, a complete country bump can. Glass was a supporter, he loved wilson. The guy wrote a ph. D. On glass and said he liked wilson so much if wilson told got to cut off his ears he wouldve done it. He was in love with wilson but im unaware of any dealings like that. May have been. Yes, sir . Carter glass and terry brute senior newspaper publishers, apparently. Is there more to be said about their relationship . I know they were bodies in the right back and forth to each other but im unaware of any business talks. I have never looked at birds papers. But i have not seen that in glasses papers. Anything else . Yes, sir . How do you think he would feel about the recent banking compromise that was passed . Senator crepe oh and senator brown, their banking reform it was just passed last congress. Two years ago, made some minor modifications to the doddfrank stuff. Eased up on a few less controversial areas. Pierre you can usually buy the default with glasses he would oppose it. I think its very hard to name, except for the actually authored, he opposed Social Security he opposed the wagner act he oppose the nra he oppose a cultural adjustment act. Pretty consistent, he was 40 va, oddly enough but he generally, he had made from poverty to the haves and he thought the world was fine. Doug anything else . Thank you very much for listening. applause david rice atkinson was a two term u. S. Senator from missouri in the mid 18th century. This included six years as Senate President pro tempore, at the time placing him third in the president ial line of succession. It was mr. At just in service in this position that some content elevated him to the presidency for 24 hours in march 1849. Next, chris taylor director of the Addison CountyHistorical Society discusses mr. Edisons life and explores the question of whether he should be recogniz