The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1910-02-06
Shaw Thinks Standard
Oil or Steel Would
Gobble 1t.
TOO MUCH POWER
| IN HANDS OF FEW
Former Secretary of Treasury
Violently Opposes Plan of Ad-
Observation-Disclosures Out
lines. Idea of Great In
stitution With Capital
Of S1oo, 100000.
Especial to Tho Times-p,.natoh I

Especial to Tho Times-Dispatch.1
New York, February 6.-Former Seq
rotary OF the Treasury Leslie M. Shaw
and Representative E. B. vreeland,
chairman of the House Committee on
Currency and Banking. gave their
views on the central bank question and
snapped arguments back and forth this
afternoon. following the Saturday dis
cussion luncheon" OF tho Republican
Club.
Mr.. vreeland outlined hts scheme for
a central bank, which will bo brought
out In tho Forthcoming report OF his
commission. while Mr.. Shaw explained
himself as being strongly opposed ta
the establishment of central bank.
You might as we'll centralize tho
reservoirs and fire departments OF the
country rs to have q central bank"
was the way Mr.. Shaw put 1t There
arc two dominant interests in the
country's finances now. Does any ones
know. for instance, OF any large city
where either the Standard OIL or the
steel trust does not control one Or
more banks? They are both friends OF
NINE" and Mr.. Shaw paused for 9.
laugh. "and If we have a central bank
L want them to control It; there is no
fear that they won't"
Most Important Problem.
Mr. vreeland was introduced as the
first speaker by i. j. Graigin, who
presided. 1T is generally conceded"
lo cot n 1,o, i,11nn n
| nomic problem now confronting our
country Is the reform of our banking
flaws. The worst defect now is tho
| lack OF elasticity. IT was this that
caused tho panic of 1907. which camo
| at tho height of the country's pros
| pcrity. In other words. the panic was
| caused by the demand for money which
| the bankers of the country werc un-
able to provide because OF our IRON
bound system.
I'm view of the lack OF stability 0f
our system, tho business man Is unable
to look ahead and provide for credit
in time of panic. This is partially
the cause OF the present high prices.
which are fixed by producers who de-
sire to reap profits now fearing a res
currence of hard times"
Mr.. Vree1and then outlined his plan.
bank with n capitalization OF $780,
100000. in which the national banks
of the country will be tho share
holders The directors are to be elect
ed by these stockholders. and dividends
on the stock are to be limited to 4
per cent. any surplus dividends to bo
turned into the United states Treasury.
The Comptroller of Currency Is to be
an eX-ofllcio director, and tho governor
of the bank is to be appointed by the
President
Mr.. vroeland pointed out that. in
spite of the scandal connected with
President Jackson's United States
Bank, there was no panic in tho twenty
years of Its existence. the only period
of that length In tho oountryIs history
which was without one.
Talk Too Giibly.
Mr.. Shaw began with tho remark
that every ono talks glibly about
elasticity, but nine out of ten men
don't know 4what It means"
Our dual form of goyernment-Stata
and national-with conflicting laws. he
said, was the chief obstacle In the way
of central bank.
"Amplc Capitalization and elasticity
will be provided,'' no continued. .it.
tho Treasury and the national banks.
working In harmony. should be permit
| ted to issue sufficient emergency cur-s
lrency and to provide for contraction as
we'll as expansion of tho currency"
Referring to the ultimate control OF
q central bank by Standard Oil or the
steel trust, with Nanderltp or u. II.
| Gary at It's head. ho said: "Thc party
| which put such power in hands of tha
few men at tho head OF these conlbi-
nations would never win another elec-
tion." He pointed to the tendency OF
the New York trust companies TO coIt-s
solidate as an Indication Of the power
! of tho few over the country's finance.
New York AiI-Powerfnl.
ut has been rightly said" he re-
marked. that If tho New York banks
| said that the stock of the Reading
| Railway. for instance. was not good
| collateral 1t would cease to be good,
! They can at present fix tho price of any
product they want to-
1 In the course of his speech Mr. shaw
mentioned the condition of the First
| National Bank, of Bay city. Mich, dur
| ing tho panic, 81
| THE average New York banker" he
said, 'would feel as badly about the
failure of the First National Bank. OF
Bay City. as he would over the death
of an Alaskan INDIAN
| Mr. shaw concluded with the state.
ment that sufficient remedy for bank
ing defects could he found In present
institutions. The United states Treas
Jury, he said, should be treated AZ q
central bank. with the national banks
las branches.
4 In replying 10 II number or ques-
tions that, had been put. Mr.. Nreeland
said the tendency toward centraiiaa-
tion was irresIstible. and 1t was q
matter rcsting with tho peaplo wheth-
or the government or private intffcsts
|should hn IN control OF tho crfn!ng cen
ltSallzcdssystcnl or currencY;