1. Overview
Edward Butterfield Vreeland (December 7, 1856 - May 8, 1936) was a prominent American banker, businessman, and Republican politician. He represented southern Western New York in the United States House of Representatives from 1899 to 1913. Vreeland is primarily recognized for his instrumental role in the development and passage of the Aldrich-Vreeland Act, a significant piece of financial legislation enacted in response to the Panic of 1907. He also served as the vice chairman of the National Monetary Commission, which was established by this act to reform the nation's monetary system and enhance economic stability.
2. Early Life and Education
Edward Butterfield Vreeland was born on December 7, 1856, in Cuba, a town located in Allegany County, New York. In 1869, at the age of 13, he relocated to Salamanca, New York. He pursued his education and successfully graduated from Friendship Academy in 1877.
3. Business and Local Politics
Following his graduation from Friendship Academy, Vreeland embarked on a diverse professional career. From 1877 to 1882, he served as the superintendent of the public schools in Salamanca, New York. During this period, he also undertook legal studies and was admitted to the bar in 1881, although he ultimately chose not to engage in active legal practice.
Vreeland became deeply involved in the financial sector and other industries. He engaged extensively in banking, the oil business, and the insurance sector. His success in banking led to his appointment as president of the Salamanca Trust Co. in 1891. Beyond his business ventures, Vreeland also contributed to local governance, serving as the postmaster of Salamanca from 1889 to 1893.
4. United States House of Representatives
Edward B. Vreeland's distinguished career in public service included a significant tenure as a Republican representative in the United States House of Representatives, where he served for over a decade.
4.1. Election and Representation
Vreeland was first elected as a Republican to the Fifty-sixth Congress in a special election held to fill the vacancy created by the resignation of Warren B. Hooker. He took office on November 7, 1899. Following this initial election, Vreeland was reelected to the Fifty-seventh Congress and to the five succeeding Congresses, which included the Fifty-eighth Congress, Fifty-ninth Congress, Sixtieth Congress, Sixty-first Congress, and Sixty-second Congress. He continuously held office until March 3, 1913.
Throughout his time in Congress, Vreeland represented various districts in New York. From 1899 to 1903, during the 56th and 57th Congresses, he represented New York's 34th congressional district. Subsequently, from 1903 to 1913, encompassing the 58th through 62nd Congresses, he served as the representative for New York's 37th congressional district. These districts covered the southern portion of Western New York, including Allegany, Chautauqua, and Cattaraugus counties.
4.2. Congressional Service and Committee Work
During his extensive service in the House of Representatives, Vreeland held a pivotal leadership position. He served as the chairman of the House Committee on Banking and Currency during the Sixty-first Congress. His role as chairman underscored his expertise and influence in financial matters within the legislative body.
Vreeland consistently secured re-election throughout his congressional career, demonstrating strong support from his constituents. His electoral performance was marked by substantial vote percentages, as detailed in the table below:
| Election Year | Office | Congress | Party | Vote Percentage | Number of Votes | Result |
|---|---|---|---|---|---|---|
| 1899 Special Election | Representative (New York's 34th District) | 56th | Republican | 62.62% | 21,773 | Elected |
| 1900 Election | Representative (New York's 34th District) | 57th | Republican | 63.82% | 32,357 | Elected |
| 1902 Election | Representative (New York's 37th District) | 58th | Republican | 67.79% | 27,579 | Elected |
| 1904 Election | Representative (New York's 37th District) | 59th | Republican | 67.69% | 33,573 | Elected |
| 1906 Election | Representative (New York's 37th District) | 60th | Republican | 65.24% | 25,468 | Elected |
| 1908 Election | Representative (New York's 37th District) | 61st | Republican | 62.42% | 32,327 | Elected |
| 1910 Election | Representative (New York's 37th District) | 62nd | Republican | 53.10% | 20,530 | Elected |
In 1912, Vreeland declined to seek renomination for his congressional seat. Instead, he was appointed as a member of the National Monetary Commission, where he served as vice chairman from 1909 to 1912, a role that further cemented his influence on national financial policy.
5. Aldrich-Vreeland Act and National Monetary Commission
Edward B. Vreeland played a pivotal role in the creation of the Aldrich-Vreeland Act, a landmark piece of legislation enacted on May 30, 1908. This act was a direct response to the severe financial instability caused by the Panic of 1907, which highlighted the urgent need for reform in the nation's rigid monetary system.
The Aldrich-Vreeland Act authorized national banks to issue emergency currency backed by commercial paper and state and municipal bonds during times of financial crisis. This temporary measure was designed to provide elasticity to the money supply, preventing future panics by allowing banks to expand currency circulation when needed. A crucial component of the act was the establishment of the National Monetary Commission. Vreeland served as the vice chairman of this commission from 1909 to 1912. The commission was tasked with conducting an in-depth study of the U.S. financial system and proposing comprehensive reforms. Its findings and recommendations ultimately laid the groundwork for the creation of the Federal Reserve System in 1913.
6. Retirement and Death
After concluding his service in the U.S. House of Representatives in March 1913, Edward B. Vreeland returned to Salamanca, New York, and resumed his previous business pursuits. He continued to be actively involved in his various enterprises until January 1, 1936, when he officially retired from active business life.
Edward B. Vreeland died shortly thereafter, on May 8, 1936, in Salamanca, New York. His interment took place in Wildwood Cemetery, located in Salamanca.
7. Legacy and Assessment
Edward B. Vreeland's most enduring legacy is his significant contribution to the reform of the United States financial system, particularly through his association with the Aldrich-Vreeland Act of 1908. Enacted in the aftermath of the devastating Panic of 1907, this legislation was a critical step towards addressing the inherent weaknesses of the nation's monetary structure, which lacked the flexibility to respond to economic crises.
The Aldrich-Vreeland Act, with Vreeland as a key author and the vice chairman of the National Monetary Commission it established, provided a temporary but vital mechanism for expanding the currency supply during periods of financial stress. This measure helped stabilize the banking system and prevent a recurrence of the severe liquidity shortages experienced during the 1907 panic. More broadly, the work of the National Monetary Commission, under Vreeland's leadership as vice chairman, conducted exhaustive studies into central banking systems worldwide. The comprehensive reports and recommendations produced by the commission were instrumental in shaping the eventual passage of the Federal Reserve Act in 1913, which created the Federal Reserve System.
Thus, Vreeland's legislative efforts and his role on the National Monetary Commission were foundational to the establishment of the modern U.S. central banking system. His work contributed significantly to the long-term stability and resilience of the American economy, safeguarding public welfare by creating a more robust financial framework capable of mitigating future economic downturns. His contributions underscore the positive impact of his actions on economic stability and progress.