ELIHU ROOT
At the time the United States was on the Gold Standard and all our money was backed by gold. Root and others were afraid that a Federal Reserve Bank, a proposal that was being debated in Congress, would cause a large amount of paper money to be printed which other nations would obtain through trade and then exchange that for American gold—a process which would deplete the American gold supply. A few years before, William Jennings Bryan had argued that the Gold Standard did not allow America sufficient ability to increase the money supply to serve the growing population and economy. See {640992}.
Elihu Root was an American lawyer and statesman who served as Secretary of State under President Theodore Roosevelt and as Secretary of War under Roosevelt and President William McKinley. He moved frequently between high-level appointed government positions in Washington, D.C. and private-sector legal practice in New York City. For that reason, he is sometimes considered to be the prototype of the 20th century political "wise man", advising presidents on a range of foreign and domestic issues. He was elected by the state legislature as a U.S. Senator from New York and served one term, 1909–1915. Root was awarded the Nobel Peace Prize in 1912.