The San Juan islander. [volume] (Friday Harbor, Wash.) 1898-1914, 1907-11-30
I'0'BE' Gg|UB|
BANKING HEADS SEE PRESIDENT |
ROOSEVELT !,

Finansial Crisis Government
Central Bank Being Asitated
As Safety Measure.
Washington, Nov. 25-The Hearst
News Service sends the following to
it's papers throughout the country
published this morning:
When J. P. Morgan and George F.
Baker, representing the Bankers Pro
tective Association in New York,
talked with the president Friday night,
according to information received
here yesterday, they heard facts
plainly presented in the presidents
most vigorous English. 1t may be
stated that the president struck
straight from the shoulder in assert
ing his views. He is even declared to
have placed upon the shoulders Of the
bankers of New York a large share
of responsibility for the recent finan-
cial crisis and to have been emphatic
in expressing the opinion that there
was lack of honest cooperation on the
part of the banks working with the
government to relieve the situation.
It is known here that the dissatis-
faction and resentment of the presi-
dent and Secretary Cortelyou was
made known to Mr.. Morgan and that
he sought the interview with the pres
lident.
Assistant Secretary of State Bacon,
former partner of Mr.. Morgan, was
the intermediary in arranging the in
lterview. So intense was the dissat-
lisfaction of the president and the adj
ADMINISTRATION leaders with the attitude
of banks and bankers in handling the
government relief funds that the sub
|ject of central government bank of
tissue was earnestly considered as a
means of relief.
Morgan Seeks President.
It is known that the president dis
cussed the matter in detail with Sec
lretary Cortelyou and with a New
York banker who is regarded very
highly by the president Comptroller
of the Currency Ridgely was also
consulted about the feasibility Of the
establishment of such a bank. He
heartily favored it and went so far
as to publicly endorse the plan in a
speech at Springfield, ILL.,, on Friday
night.
sentiment in the mind of the president
and the possibility of the establish
lment of a government bank and also
the strained relations that had been
evolved between the Secretary of the
Treasury and the bankers in the
methods of handling the 100000, 900
certificates of Indebtedness, that
caused Mr.. Morgan to seek an inter
view with the president, and it was
the desire on the part of the admin
listration to have the whole affair gone
over and to let Mr.. Morgan, who is
recognized as head of the bankers
combination, know exactly the atti-
Itude of the administration, that led
the president to grant the interview.
The question of currency legislation
was threshed out, and it is under
lstood that Mr.. Morgan and Mr.. Baker
both opposed any radical steps.
Bankers Demand Terms.
AS the matter now stands, the
group of bankers Morgan and Baker
represent control the currency of the
country, and they are able to make it
elastic or contracted, just, as they
please, and exact tribute in the shape
of high interest charges. They urged
that they be consulted before any
measure was decided upon as an ad-
ministration measure.
There has been an effort in certain
quarters to create the impression
that the president sent for Mr.. Nor
gan and sought the interview. From
an authoritative source the informa-
ton is secured that it was Mr.. Nor
gan who sought the interview and
the president who granted it. 1t is
said that after the conference there
was a distinctly better feeling all
around, and that Mr.. Morgan, on be-
half of the men he represented, made
certain promises. It is understood
the administration will seriously
watch operations to see that these
promises are explicitly complied with.
President. Cares for West.
i One of the pledges exacted, it is
understood, is that the New York
banks which have been boarding,
|either to build UP cash reserves or
to allow favored interests to purchase
stocks at panic prices and to deposit
them as collateral, are to Immediately
furnish banks in the Middle West,
1.-THE Northwest and the Industrial cen
tiers with sufficient funds to move
Icrops and care for the immediate
needs of business. In the meantime,
the arrangement between Secretary
lCortelyou and the banks for the dis
I tribution of the $100,000,000 OF GER
Itifcates of Indebtedness will be car