The Washington herald., 1908-02-26

At s:l4 the committee arose and the House ad-
journed until to-day at
New York banks as my reserve. for my
uses, and when they allure into their
gambling dens the untried youth and the
ignorant adults Of the country and rob
them Of their property. Of their peace Of
mind, and their self-respect, and destroy
the stability of the commerce OF this
country by a panic which their unwise
and vicious conduct produces. I feel it
my duty 10 enter an ernest protest.
Banks GambIers' Reliance.
THE point I wish to call attention 10,
however. is the fact that the national
banks are used as agencies for carrying
on these gambling transactions on the
stock exchange. 1t is. as have said, the
most stupendOus gambling palace on the
face OF the earth. where the intelligence
of the victim is drugged and loaded dice
and trapdoors prevail. They sold. or pre-
tended to sell. values during the last year
OF over thirty thousand millions. an
average Of over one hundred millions a
day for every business day in the year
They used for this purpose. on a margin
VI dbOut ~ per cent, H&dTly ali OF the
reserves placed on deposit in New York
by the banks OF this country, and when
the critical time came that our national
commerce called upon their banks Of de-
posit from Maine 20 California for the
currency necessary 10 transact the bust
ness OF our national commerce. the New
York banks. who had been engaged IN
promoting these gambling transactions
for profit. and who had by their own
tactics caused a gradual reduction in the
values OF stocks from the beginning OF
the bear movement until its elimination
I'm panic, were unable 20 respond TO their
contracts with their correspondent banks
They were unable to pay currency because
their own conduct IN promoting the great
gambling scheme OF the stock exchange.
which eliminated in the panic. frightened
the people Of the country who had their
personal deposits in the banks. and a
sudden withdrawal for boarding took
place in New York, tying up within
week an enormous amount OF currency.
Whether this was promoted by certain
wealthy maiefactors,' who helped engi-
neer such a scheme and az the critical
moment withdrew. currency for the pur-
pose Of promoting panic. IS not material
The point I wish TO emphasize Is that
the use OF these reserve funds on deposit
with The New York banks for loans in
the speculative market. was one OF the
direct causes Of this recent panic
The most notorious cause of panic are
these gambling operations which have
threatened this country by the steady
contraction Of the market price of stocks.
The committee measure ignores the chief
cause
Bears the Panic-makers.
1T should be remembered. NJ Presl-
dent that the gamblers on the stock ex-
change are composed of two classes-the
bulls and the bears. II is the business OF
the bear operator TO destroy confidence.
to break down values. and his resource
fulness in this respect is wonderful
He uses the agencies Of the press OF
every kind and fills the country with sug-
gestiOns Of panic and disaster. He is
backed by unlimited wealth, and there is
the most substantial reason TO believe
that he has been backed during the last
eighteen months by the wealthiest men
in the world. who. not content with for
tunes so vast as 10 be incomprehensibIe
10 themselves. have desired TO break the
stock market for the purpose Of using
available cash credits for the appropria-
ton OF the stocks and properties held by
weaker men 1 shall not stop 10 criticise
the moral aspect Of this matter I only
desire TO emphasize the fact that these
bear operators are able to cause violent
fluctuations OF credit. violent fluctuations
OF interest rates; that they set out false
signals to produce shipwTeCk for their
own profit. Il is to stop the disastrous
results or their campaigning and 10 stop
their promotion of panic conditions that
! earnestly insist upon the remedies por-
posed in the substitute bill
First. To prevent the use of national
bank deposits for safeguarding pur-
poses.
Second. To redistribute the reserves.
10 withdraw from the central reserve
cities a portion of the national reserve
actually required for the use Of our com
merce, TO strengthen the reserves Of all
the banks by bonds suitable for emergen-
cy notes.
Third. Chief OF all, TO provide an in
surance plan that will prevent any at
tack on confidence being successfully
employed by bear operators against the
bank depositor.
Fourth. To provide emergency notes.
properly secured in volume great enough
to meet any contingency whatever, and
to have such Issue taxed IN a sum high
enough to compel the retirement of such
notes when the emergency passes"