The sun. [volume] (New York [N.Y.]) 1833-1916, 1911-11-15
! TO HUNT THE "MONEY TRUST
CONGRESS UITTEE WILL
90 ON UiLL ST. TRAN.
wcstrrncrs Want 10 Find out where the
Money Goes and VINO controls 1t and
WI, sure Thcy1l Trail the Monster
10 lis Den and Then smoke II Out Z.


WI, sure They'll Trall the Monster
20 lis Den and Then smoke II Out.
WAsuINGroN. Nov. il. The money
trust" will be Investigated by select
COMMITTEES of the House of Representa-
tivps at the coming session of Congress
if the Committee ON Rules has its way.
DESPITE the fact that the Monetary Com
mission is prepared TO report in December
a comprehensive plan for the reform of
the monetary system of the United States.
the members of the Committee on Rules
baliovo. il is understood. that a special
inquiry should be made by direction Of
Congress into the activities of the money
trust" which. from the standpoint of
House Democrats means the group of
individuals in Wall Street who are gen
erdlly credited with power over the
finances OF the country.
In tho latter part of the special session
Of Congress Representative Lindbergh
of Minnesota introduced "a resolution
calling for an Investigation of the money
trust" and setting forth that there was
IL constantly Increasing power in certain
individuals and corporate concerns to con-
centrato and control for selfish purposes
ths moneys finances and credits of the
people, all tO the damage and irreparable
injury of the people"
The CJmmitte. on Rules gave u hearing
on the Ludpcrgh resolution and Mr.. Lind
bergh urged the committee to make fav-
orablp report Representative Weeks of
/ Massachusetts a member Of the Monetary
{ Commission. VINO it was thought would
-
mttteo by saving h" had no objection to
. the inquiry proposed. lie thought. how
/ ever that the Monetary ommission would
cover great deal Of the ground that Mr..
! Lindbergh wanted examined.
In presenting his case to the commit
tee Nr I.iudbcrgh. who is an extreme
radical, made IA great deal out of the fact
/ that the National City Bank had organ
! lacl n subsidiary corporation known as
tho National City Company, the purpose
Of which, he Inferred was to purchase
and hold the stock of other banks.
There is no doubt in the mind OF any
person who has studied the financial
,ituation." MIR liudbcrgh told tho Rules
! Committee. that Morgan and Rocke
fcicr. if they were disposed to do so,
could hriuE on a panic N any time. That
j. duc to the very nature Of our laws
and 20 tho practics that the banks are
obliged 10 pursue under the present laws
in Keeping their reserves. Our banking
laws ara very defective Even few
mon with very snail sum of money
with - per cent of the amount Of capital
required to start national bank can
start a national bank and may immed-
4 4. r.. ..
deposits. start in another town and con-
tinuc that process indefinitely"
Mir Weeks, after emphasizing the fact
that he had no objection To the inquiry
propos,-i hv Mr. Lindbergh said he
agreed with the latter as TO the necessity
for reform in the banking system.
1T Is one Of the principal difficulties
in our banking system" said Mr.. Weeks.
that our reserves are not located where
they ar" available when needed That
ucfec' should be corrected Those re-
serves are now in Wall Street because
New York banks pay ? per cent. on bal
ances, and New York is the great centra !
banking city of this country. The result
S that when business IL quiet and money
j. not required III local communities
II drifts into New York.
There are probably 500. 900 900 to-day
in New York city banks which they can
not lend at all and upon which they are
paving per Cen.. interest. The natural
p result follows. Money aCCumulates until
il becomes a burden and gradually works
it5 way into speculative channels, Later
when II is n""G"d where IL belongs. at
home the country banks draw on their
city deposits. which compels the calling
: ( of loans and results frequently in fin
lanolal difficulties That j. one of the CUES
JlonS 'o which the monetary committee
: wilt propos" a solution which | believe
! will appeal to the country and to Con
, rr"sa
, f. Is Of interest that Secretary OF the
Treasury Ma"\ \caGh in his speech in Chi
."aEo Lst Week "mphatiCally condemned
IA" prHollc" Of one bank owning stock IN
, another and suggested that the None
,, tarv Commission should specifically pro-
hltlI anything of thls sort Mr. Lind
: bnr ii and MIR. Weeks when before the
, Rules Committee, disagreed decidedly
las to the existence of a money trust Mr.
Llndhrryh insisted there waS combina
ton of capital entitled TO be- 30 designated
whila Mir Weeks fatty said he did not
- think rher" was any such thing.
Wal" the Rules Committee did moi
Yota uu the resolut ion az that time il
agreed tentatively that at the coming
session of Congress the resolution
J. amended. should he reported fdvorGbly
- a. to provide for an Investigation IA
Il 20 V Bother there are or are not comhina
tion; OF tinancicrs or financial institutions
or corporations or other concerns operat
= inZ IN restraint Of trade and i'll violation
: of law
= A. tho Monetary Commission is no
t expo"t"d to deal with this phase of th'
subject in lis report To Congress it i
b. pretty certain that the Rules Committee
= will stick TO its resolution to report th'
u pending Lindbergh resolution for an in
: quiry into the activities of the so-oalleC
g money trust"