Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1909-12-18
Shan on the Central Bank

great subject. Capacity to do these
gigantic things and to render these
herculean services is an essential
consideration in the argument in favor
Of a central bank I do not believe,
however, that it is wise to place a
financial control of the business of the
country in the hands of any one group
of men, and some group of men is
sure to control such bank If one is
established. AS between groups diff
ferent people will have different prefer
ences. l have expressed mine. Cen
tralization of financial power in any
such degree Is wholly unnecessary and
to me most repugnant. l will go
further; in my Judgment any party
which fastens centralized financial
power upon this country will never
carry another election, if, indeed, it
ever makes another nomination.
l thoroughly believe, however, that
the Standard Oil company and the
United States Steel corporation could
afford to pay the nationa debt for
such a charter, and l say this indie
pendent of whether such bank would
be independently profitable or other
wise. The control of it would be
valuable beyond the power of man
to conceive to any group of men who
had independent financial interests
large enough to justify it and the
ability necessary for it's operation.
1--WE all remember that the control
OF a certain life insurance company
with a capital of only 100000, sold a
few years ago for $9,000,000 when the
maximum dividend was fixed in the
charter to per cent or $4,000. Ger
tainly that vast sum was not invested
expecting returns of only $4,000 per
annum when the same amount in gov
eminent bonds, even, would yield
$180,000. No, the company had assets
approximating $500,0000,000, and the
control Of such volume of trust funds
if honest and wise, is very profitable.
1t has recently changed hands again
and presumably at yet higher price.
| Taking the price paid for the con.
troll of that life insurance company as
a measure of value, do not think
overstate the fact when I say that the
two largest corporations in the world
| interested as they are, directly or
through their affiliations in nearly
|
controlling probably in excess or one
hundred of our largest financial insti
tutions, with, I suppose, $4,000, 100000
in assets outside of their own capital
ization can afford to pay the national
debt for a perpetual charter for a cen
trail bank safeguard the smaller in
| terests as you may.
Possibly it will be suggested that
the national banks be required to pnr
chase and hold the stock in the pro
posed central bank. But what OF
that? Are they likely to combine fol
the control of such an institution
And if they did combine, what sort OF
an incongruous control would it be:
The actual control of such an institu
ton must rest somewhere, and il
would be very easy task for either
of these great corporations, if the
other did not oppose, and easier still
4 for the two jointly to secure control
although the stock were scattered one
share in place. In fact. the more
widely the stock is scattered, the
| easier could the control be obtained.
will it be proposed that the presi
dent appoint or congress elect the
| board of governors for the bank
When this is done you have made tbs
bank a political football, and have
not prevented actual control of the
men who are to control the bank.