The news-democrat. (Providence, R.I.) 1906-1909, 1906-06-27
WEDNESDAY, JUNE a7, 1906.
CENTRALIzING THE MONEY POWER.


years, chiefly in this city, and, to lesser extent,
throughout the state, has been viewed with uneasi-
ness and misgiving by the entire business com
munity, with the exception OF the small but active
element that has planned, promoted and effected
an audacious Capitalization OF the money power
in Rhode Island.
Earlier combines and mergers were regarded
as questionable and unwise. Those believed to be
now on the way toward consummation and still
Others contemplated, will in the opinion OF men
OF sound judgment, constitute a positive peril TO
the business, commercial and industrial interests Of
the commonwealth.
1t is not old fogy opinions of the past, but
the progressive judgment OF the present that pro-
nounces the latest schemes for trust company con-
soidation dangerous.
small coterie OF men controlling two trust
companies by daring and successful manipulation
absorbed one after another of the national banks
and savings institutions of the state until today
there remain but pitfu few in comparison with
the great number, the stability and soundness of
which were once the pride and boast of every
loyal Rhode Islander
These men were quick to realize the posi-
biities of greater profits the trust institutions offer
than are afforded by national banks.
Island is dependent almost entirely upon the
ability the judgment, the prudence and the hon
esty OF those concerned in it's management. They
under state supervision is their cond
ton subject to the scrutiny of any official repre-
senting the authority OF the state.
They are under few greater responsibilities
TO the government and are subject to few other
restraints than those imposed upon the grocer in
he uhn hapk for
fellow countrymen and does much as he pleases
with their savings.
Upon the national banks which the trust COM
tige have absorbed there rested heavy responsible
ties and rigorous restraints-responsibili that
and alert and ever watchful government never al
lowed TO be shirked or evaded, and restraints that
keen, capable and ncorruptible examiners never
permitted to be relaxed
The merchant or the manufacturer in his
transactions with any of these absorbed or merged
national banks had the assurance OF its sound
in the vigant supervision which the national
government exercises
Can he have equal assurance in dealing with
trust companies doing business in state which
has failed to establish any system OF bank super
vision or examination, chiefly because of the oppo-
sition of the men who have effected the comb-
nations and mergers that put the national banks
out of existence, and who now dominate and
direct the affairs OF the trust companies that alb
sorbed them?
Report apparently based on authority declares
the Union Trust company is on the point of taking
the Manufacturers Trust company. An
equally well founded report states that when this
merger has been accomplished it will be followed
some time later by the consolidation of the Union
and Industrial Trust companies.
Is it at all surprising that the prospect OF
such colossal Capitalization of the money power
in this commonwealth dsturbs and alarms the
business and industrial community?
Will not grave peril confront the merchant,
the manufacturer and even the small trades
man if this gigantic scheme for Capitalization OF
the major part of the banking facilities of the
state in the hands OF two or three men is carried
to fulhment?
What tremendous power over every branch
OF trade industry and commerce it will confer
on these men, whose ambition it would seem will
be satisfied with nothing less than absolute owner
ship of Rhode Island financially and politically
The peril OF such consummation should be
an incentive 10 every citizen TO whom despotism
is repugnant TO ally himself with the army OF re-
form and to labor unremttingly for its triumph at