Evening journal., 1908-03-06

SIS mutual savings hanks, mostly situ
ated in New England. Only the 1S,o57
stockholders Of the national banks are
favored. The other savings and state
banks and trust companies of the
United States are also ignored. Yet
they have more stockholders. deposit
tors and deposits.
The average deposit in national
banks is larger One man withdrew a
million and another seven hundred
thousand dollars In the recent panic
Wealthy men of influence may have
advance knowledge and act first, leav.
ing the burden OF loss to fall upon the
smaller and less alert deposltor. Banks
Of the humble people most need from
Congress emergency help to protect
against panics. The Aldrich bill gives
them none. The number OF citizens af-
fected, rather than the size Of thsir
fortunes. should be considered in maxi
ing laws. In fact those Of slender
means. who can not afford the loss,
should be considered first. 1t is the
individual, and not his bank account,
who is terrified with fear when panic
threatens to wreck the bank ana sweep
away the savings Of lifetime Of toll.
Congress should legislate for people
rather than for money
Will Rob Other Banks Of Deposits.
Could any legislation he more par
tial. unfair. un-American? What Just
reason can be given why the emergency
currency should NOT be issued to any
bank or trust company deposlting the
required bonds and raging the hign
tax? The Adricn law would make the
people think national banks safer than
other banks Is Il the clever purpose
to use this law of Congress to entice
into national banks the deposits of all
state. savings and private anks, loan
associations AMI trust companies? 1t
would tend to do 50. This was the case
when the trust company system Of New
York citv was recently discredited.
When the Knickerbocker Trust Com
panv was wrecked because tho Ma
tional Bank of Commerce suddenly re-
fused ful ther to clear for Il. and this
fact was emblazoned in the public press
in a wav that would have wrecked any
bank or trust company in the country.
The Secretary Of the Treasury. in his
response on January 30, 1908, 10 the
resolution of the Senate. SAYS that be-
cause of this distrust the deposits Of
the New York trust companies de-
creased S267. s75. .S96, but the deposits Of
the New York bapi,s actually increased
s53, ,2sO. 1856, Notwithstanding withdrawal
and boarding of S2eC,000.0 900. Will these
institutions remain quiet and let Con-
gress thus legislats their deposits out
of their hands and into national banks
The total resources Of the 2S,9SI banks
and trust companies are S19,645, 900, 900.
OF this vast amount the national banks
already have secured IS. .390. .S2S. .402.s0. II
the Aldrich law transfers the balance,
the 4s,057 stockholders Of $3.50 national
banks win own absolute control over
the entire deposits Of S5,00O,OOO Of peo-
pie.
Concentration Of Bank Control.
Control of national banks is gradu-
ally getting into fewer hands. The
capital and surplus of the 3S national
banks In New York city aggregates
S226, ,s73, 10000. This is more than the
total capital stock of two-thirds of all
the national banks Of the United
States In fact, taking the smaller in
stitutions, the combined capital stool
Of half of all the national banks II
| the country, 1926, only about equal
the Sl1T,92S,112OO joint capital an'
surplus of just three big Wall stree
banks. These are National Bank o
| Commerce, First National Bank o
National City Bank. said to be al
dominated by three men, Mr.. Morgan
MIR. Rockefeller and Mr.. Ryan. Thl
total cash resources handled by thes'
/ three banks is S557. 7.21l,40O.0O, al
amount equal to about 60 per cent o.
the entire bonded debt Of the United
States. which now is $S94,SS4, $4,000.
Still more signicant, the capital an'
surplus of the National City Bank
lcommonly cal ed the Standard OIL bank
is now S4S,5S2, ,022.O0. This is nearl,
equal to the aggregate cap tai Of th'
2063 national banks having less thar
| 50,00O.O0 capital, which is S54,5-2,-
10000 The cash resources handled b,
I this bank alone are 1898, ,233,l00.00
/ Further concentration Of banking con
/ troll deposits and power will not b.
for the common good. 1t viii not b
good thing for agricultural, CONNER
cal and industrial borrowers TO al
be absolutely dependent for the monel
they must have upon the will Of {
small coterie Of powerful gamesterl
who in increasing measure are coming
to dominate most Of the great finan
cial institutions controlling the deposi
and insurance savings of the American
people. This financial concentration
necessarily carries with II railroad
and Industrial consolidation, desruc
ton of competition, and loss of op
portunity and independence of the in
d,vidual citizen. There Is a dead-lini
beyond which this deve opment can
not go without endangering Republi
can Institutions, and we are in sigh
Of the warning signal. The Aldricl
measure. more than any law ever pu
through Congress. will increase thi
Capitalization. II will create a hug
money trust 1t will oppress labor
With 1t a political machine can b.
built up that nothing but literal re
volution could destroy.
Wall Street Concentrating Machine.
Wall Street is a great concentrat
ing machine Organization OF rail
roads into systems and industries int
trusts has provided nationwide agen
cies for gathering the crude fruits o
human toll and bringing them TO thi
| concentrating plant. There, all tn
values are easily extracted and largel,
seized BY the few who now operat'
n. i.