The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-11-10
Possibility that the Latter VIII Es-
tabIish a Bank to Do a World
Wide Business.

the government will have to deal with the
proposition Of giving authority and power
to establish a great central bank, which
in effect will be the bank and do the bank
ing business of the United States. 1t is
not possible 70 explain what is meant by
a central bank of this kind at this time
because now those who have the project
in mind have not definitely decided on
what they will propose or attempt. Broad
ly speaking. the venture will be proposed to
meet the objections of those who object
TO the government engaging in the banking
business as such. In short, the United
States treasury performs a few of the
functions OF a bank In addition to admin
isterfng the revenues and disbursements OF
the government.
In the next Congress there will be pro-
posed by Senator Nelson, OF Minnesota, a
measure for the establishment OF a new
department of the government. to be known
as the Department of Commerce. This is
not a new scheme. 1t was up in the last
Congress, but was not pushed to vote
for the reason that some detail as to the
scope of the new department had not been
settled yet and there seemed to be no need
OF great haste. One of the objects of this
department will be to relieve the treas
ury of number of functions which have
been thrown to 1t because there seemed to
be no other place for It. There is no reason
why the lighthouse business, or the Marine
Hospital Service or the secret service, ETC.,
should be under the secretary of the treas
ury.
The proposition for a central bank will
come offer 70 relieve tho treasury
of its banking business. This is a big
subject and is only referred to as a fact
IN connection with the struggle on the
part OF two large financial groups in New
York TO be ready to form such a central
bank when the government can be con-
vfnced of the propriety of giving such a
grant. These money groups are what are
known in the street as the Morgan crowd"
and the Rockefeller crowd" In Wall
street the Morgan and Rockefeller inter-
ests are as distinct as the Republican and
Democratic parties are in the political
world.
STILLMAN'S IDEA.
The banking head of the Rockefeller in
terests is James D. Stillman, the president
OF the National City Bank, the largest in
the United States. He has had the central
bank idea on his mind for years. In this
he is supported by Secretary OF the Treas
ury Gage. who recently made speech at
ISOLATION in Milwaukee supporting the gen.
eral scheme. Bankers will remember that
he advocated the propriety of the govern
ment recognizing some financial institution
which should be its representative in the
banking business. 1t is probable that he
did not say just how far he is in favor OF
going when this grant of power is issued.
1t Is more likely that he only suggested
the idea In semi-oficiaI way TO provoke
discussion and debate. He, as well as all
others interested, knows that the country
must be prepared for such move by con-
siderable advance discussion.
speech was made by former Controller
Eckels at the same time in which he advo-
Gated the forming of one central bank,
which should do the banking business of
the government 1t is likely that he does
not advocate such institution as the
Bank OF England. but something OF the
same kind of an institution with many of
its powers. 1t is extremely likely that he
also had in mind the ambitions of some of
the wisest and most conservative bankers
OF the country. especially of New York
when he advanced this proposition. Un-
questionably he has set the bankers TO
thinking Of the subject, and later the de-
bate will extend to business men and the
people
II is suspected here that Mr.. Stillman has
made extensive preparations in the way OF
working out the detail OF such scheme.
A short time ago he secured the services
OF Frank a Vanderlip, then assistant sec
retary OF the treasury He became one of
the vice presidents OF the National City
Bank. He made an extended trip to Europe
before the announcement was made of the
acceptance OF his new position. He re-
mained here only a few months when he
returned 10 Europe for further observa-
tions. II is believed he is making detailed
study OF the workings Of European state
banks. with the intention of selecting ideas
for American adaptation His familiarity
with the politics of this country. and what
can be done at Washington. either in a
legislative or an executive way. would Pc
culiarly ht him TO make these observations.
with the thought OF practical application.
ROCKEFELLER'S BANKS.
The Rockefeller crowd" Is supposed TO
have made extensive banking purchases re.
Gently through Morse the president OF the
Ice Trust. He suddenly developed as
bank-buyer In wholesale quantities-in fact.
he took more banks than anyone outside Of
the capitalists OF the first magnitude could
handle These. with the banks already a.
ISOLATED with the city Bank. through sym
pathetic relationship. would give the Rocke-
feilers a chance 10 assemble a tremendous
aggregation OF capital They are no less
Tremendous even In their individual condi-