New-York tribune., 1911-12-28
DANGER Of MONEY POWER
Samuel Untermyer DepIOreS
Concentration in This City.
DOZEN MEN IN CONTROL
Tells Finance Forum His Criti-
cism Is Directed at System
That Makes Such Results
Possible.

The concentration Of the money power Of
the country in the hands Of a dozen indi-
viduals in this city through an unrestrict-
ed use Of the funds intrusted 10 the bank
ing institutions controlled by them Is one
Of the greatest dangers confronting the
nation and one Of the principal reasons for
the growth Of trusts This was the sub
stance Of a lecture delivered by Samuel
Untermyer at the Finance Forum or the
West Side Young Mems, Christian Associa-
ton last night.
He said no money trust in the sense OF
the word trust as applied to Illegal indus
trial combinations did exist, but there was
close and well defined community OF in
terest' and understanding among the men
who dominated the finances OF the country
and welded a fabulous power over the fort
unes Of others through their control Of cor
porate funds belonging TO other people He
added that he had no reproaches 10 make
against the men who had achieved this
power as they had exercised it with ex-
ceptional Justice and self-restraint, but his
criticism was levelled against the financial
system that has made such results possible
and threatened to lead to a moneyed OIL
garchy with unprecedented power.
After describing the methods Of financing
great railroad and industrial corporations
through banks known as issuing houses
Mr.. Untermyer said there was absolutely no
competition in this business, and the small
er banks were glad to figure as under
writer's" because substantial item Of
income depended upon this good will Of the
large banks. So great was the power and
patronage OF these large banks, he said,
that It was not necessary for men to be
even directors in the financial institutions
they controlled. Mr.. Untermyer then said
There has been greater concentration of
the money power in the last five or ten
years through the control acquired by these
rev men over corporate funds that are de-
posted under their direction in our finan-
cial institutions than In the entire preced-
ing htty years The process Of absorption
Is Hkely 70 continue until a few groups alb
solutely dominate the entire financial stua-
tlon or the country unless some way can
be found 70 check their march of progress
IL Is said that the average daily bank
balance or the United States Steel Com
pany IS about S5.O0OO0; that of the To-
bacco Trust is said 70 be so, 600 or more
whilst the average daily balances Of de-
posts Or the many other trusts whose
nnancial headquarters have been trans
ferret TO New York must amount cOuser-
ratvely stated, 10 many hundreds Of mill
IONS or dollars. When TO this is added the
influence OF these bankers In designating or
directing the depositaries OF the funds OF
the principal railroads OF the country into
the institutions controlled by the respective
issuing houses We begin 70 get some faint
conception Of the sources Of their power.
Thus It has come 70 pass that less than
dozen men in the city Of New York are for
al practical purposes in control of the
direction OF AZ least - per cent Of the
deposits OF the leading trust companies
and national banks i'm the CITY of New
York and OF allied institutions In various
parts OF the country
No fault could be found with the most
unrestricted use by these men Of their own
money within lawful limits. So long as
they use only their own money we have
nothing 20 fear from their mad race for
power. II is when they tap the resources
Of the merchants in our banks and the
savings Of the people in our life insurance
companies and industrial and railroad cor
pOratiOns that we must stay their hand
no matter how well meaning may be their
, IaaasP~--.-R$o matter what may nave been
of US, no man or body OF men in private
life and without defined obligations 70 the
public. or legal restraints should be per-
mitted 20 enjoy such an orgy Of power If a
way can be found 20 avert it.
Mr. Untermyer also said the same power
that controlled the banks dominated the
Clearing House Association. and the des-
potlc control organized by that association
was archaic and dangerous and should be
put under the supervision Of the Controller
Of the Currency