The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1909-12-16
SHAW ON THE cENTRA. BANK

Leading business men al over the |
country are discussing an address de- |
livered at indianapolis the other day
by former Secretary OF the Treasury
Leslie NJ Shaw in opposition the
establishment of central bank.
Mr.. Shaw objected to such an insti-
tuition on the ground that it would
necessarily be privately owned, and in
such event it would clothe the Stand
ard Oil Trust or the Steel Trust. or
both with the power to expand or con-
tract the currency, thus enabling them
| to make or break railroads, insurance
companies and other corporations at
4 will. He said that only two giant
money interests of the country are
capable of financing such bank, and
| he declared he believed the proposed
bank is scheme to centralize the
| financial interests of the country and
place them in control of Morgan,
Rockefeller and the rest of the
money group. In this connection he
said:
There are two diseases prevalent
in this country, either Of which is
liable to prove fatal. One is Wall
street-mania, and the other Wall
street-phobia / do not think that !
| have been sadly inoculated with eth
' er. but am frank to say that it
, seems to me quite unamerican to
place with any group of men the
power to contract or expand our cur
. rency at will and to grant or Withhold
credit to any bank, to any merchant
I and to any corporation at pleasure.
$ 1t was charged, and as vigorously de-
]. MED. that the affiliated banks OF New
. York during the panic of 1907 simply
O withdrew credit from Tennessee Coal
/ and Iron, called their loans, and fin
: alIv adjusted the matter by taking
over the property at a fraction OF its
admitted value, upwards of 100000,
600, and paid for it in United States
s Steel securities, without the exchange
of a dollar in money. Assuming the
n charge to be libelous, it still illus
k trates what could be done were Z
n group of men possessing the re
a .auisite disposition to be in control o.
a. the central bank OF a set of New
Year resolutions given out some year!
a ago by Josh Billings, remember bu
one. Resolved, That if man tell
me mule won't kick, I'll believe him
,e but won't go near the mule
a but. lest it be charged that | an
- appealing to popular prejudice, | an
y :, willing to go ON record that If we ar
IL to have a Central bank | shall we
~ come control by the Standard Oh
lie company or by the United States Stee
eff corporation, though preferably b
s. both combined This is not based o.
personal friendship, though som
measure of personal friendship,
:. hope, exists, but it is based who'll
= on the question of fitness for tn
~ task.
On "At the risk of being criticised, al
SO going to inject few statements
ne commentator of the Standard o
nd people. They rendered, by all odd
On the greatest service of any instit,
nc ton or any group of people during tn
i. panic of 1907. From October of ths
- year until Jan Is following, the n;
- tional City bank of New York fiji
anced exports of cotton, grain. me
ais. and other commodities to the e.
is tent of $3.50 100000 If any other il
a stitution in the United States finance
a a million in exports during that tim
shall be glad to know its name'
la. Mr. Shaw declared that it is di
in ficult to over-estimate the value
nd this service These exports liquida
ad ed our foreign bills and paid for a
nd the gold we imported. In addition I
3 all this without calling loan, tt
Nd. same bank granted assistance to /
{ dividuals, firms and corporations.
the extent Of s4o,0Oo,000. This,
said, is wonderful record, and
OF must be taken into the account in co
ast sidering this great subject. Capaci
led to do these gigantic things and
Ir. render these herculean services is ;
ub- essential consideration In the arg
ese gent in favor of central bank. N
ar. Shaw made it very plain that he do
the not believe, however, that 1t is wi
eff to place financial control Of t
the business of the country in the han
not of any one group of men, and sor
hat group of men is sure to control SUI
but a bank if one is established.
,yi- added that Capitalization of finance
on power in any such degree is who
rem unnecessary and to him most rept
tn. nant!, He gave it as his belief tn