The independent. [volume] (Lincoln, Neb.) 1902-1907, 1905-02-16
FUNDS FOR PROMOTING TRUSTS
How They Are Accumulated In New
York.

personal letter from banker last week
in which he said: You take it for
granted that the people know more OF
political economy and the details OF
banking than they really do In con-
sequence of that, your many illusions
to reserves, reserve cities, and great |,
many other things are totally lost when
presented to the ordinary man. You
have many times alluded to the accu-
mutation of vast amounts OF money |
in Wall street banks and their use in
floating immense promotion schemes.
You have denounced in a general way,
the law concerning the. .transference OF
reserves from one bank TO another TO
the reserve cities, and have said that
the banks really have no reserves, but
you have never explained to your
readers list how that thing was done.
suggest that you write such an article
as it would be OF permanent value.
The work OF preparing such an article
as that would be very great, ana as
the editor, since De France went TO
New York. had no assistant, he dreaded
the undertaking. However he went 70
the libraries, got the comptroller's re-
ports and the facts necessary for It's
preparation, when he struck run OF
luck, such as seldom happens. tie
found in Pearsons Magazine OF No
yember, an article of that very kind,
his attention having been called to 1t by
the librarian, lady who knew her bus
liness and what she was drawing her
salary for.
This article was written by Mr.. Q. n.
Schreiner, banker of many years, ex-
perience. He was president OF the New
York Seventh National bank In the
days Of it's prosperity. Some OF the
figures he gives were verified, and Wltn-
out doubt they are all absolutely ac-
curate. 1t is kind of reading that
can not be run over as one reads
novel. It will require some thinking.
There was never more damnable con-
spiracy among bankers, and there have
been many of them, than that by which
thew secured the amendments to the
original banking act That act did
provide for reserves, and 1t prevented
: the congestion of money in New YORK
while the west and the south were
skinned clean of all currency. The edi-
tor Of The Independent fully agrees
with Mr.. Schreiner when he says thai
our financial laws are "the nourishlne
: mother of trusts"
A national election is approaching
and one of the principal bones OF con
: tention is again to be the tariff, which
+ democrats denounce as father OF th'
trusts. If the tariff law is father O.
Z the trusts, national law which effects
g unnatural and lopsided distribution o
t money is their nourishing mother
Money in circulation was below 81
9 per head of 35 100000 population at th'
: close of the civil war in 1865, but il
q now over $50 per head OF 8O,OOO,O0
e population. The natural flow OF s.
q great an increase should have fur
g nished the only source OF surplus sup
't ply to the money market.
In whatever form, money can D
d created only by or under rational law
II Money is the only life blood OF al
n undertakings, and the measure OF a.
$. values Labor, industry, and propeft
n are all gauged thereby. It shenl
i therefore circulate without favor 9
impediment of law, guided only b
natural demand and supply.
A proposal to favor by law re-
banks in large cities with use OF none
:, denied to thousands of other banl
y ~ throughout the country would quickl
~ - meet with public ridicule and conden
~ !" nation. Yet by deposits from bank r
= serves, such legal favoritism is act
M ally accomplished, continues, al
~ ~ grows with the growth of the nation
4 banking system.
ho The law fixing and regulating
60 serves by national banks is found
- section 5191 U. S. Revised Statute
~ modified by portions Of sections 81
&C and 5195; and since modified by az
~ of June 20, 1874; March 8, 1887, a
To- March 3, 1908.
be Section 5191 provides as folio
nv every national banking association
m ed either of the following cities: Albar
In Baltimore, Boston, Cincinnati, Chicas
10 Cleveland Detroit, Louisville, Milwa
kee. New Orleans, New York, Phil