Morris tribune., 1911-12-29
GREAT MONEY TRUST.
Congressman Would Investigate
Handling of Reserves.

The statement is often made that
the "money trust" is the 'tfather of
all the trusts" but Just what is
meant by the money trust is to most
people somewhat hazy. Congressman
Lindbergh, of this state has introduced
a resolution into congress to have the
money trust investigated. and in sup
port of his resolution submitted a
brief to the committee on rules.
Mr.. Lindbergh wants the house to
inquire into the methods by which the
financial combination in New York is
able to concentrate billions Of the
public's money for use by itself in
speculative enterprises.
He believes full exposure will re-
salt in action to terminate the system.
The present system, he declared. re-
suits in draining the resources of the
country into Wall street. The Aldrich
currency and banking plan. which he
declares to be a monstrosity, Mr..
Lindbergh says would extend and
strengthen the financial control of the
money power.
In his brief Mr.. Lindbergh says:
'The great fault of our American
banking system today is the main
tanning of these great reserves. They
are supposedly maintained for the
depositors in the banks, but the pen
atty for the depositors who calls on
them in times of panic is the failure
of the bank and loss of his deposits.
"By reason of our central reserve
system these fixed deposits are in
New York principally, and the banks
there can loan IS per cent Of them.
to whoever stands in their favor.
Investigation will show that there is.
more money in the city Of New York
as result of this system than in all
of the rest of the country.
The great banks in New York which
control these reserves are controlled
by Morgan. Rockefeller and their as
sociates. and these men in turn con-
troll these reserves.
=. e is interesting 20 observe that
approximately 400 national banks in
less than fifty reserve cities, authoriz-
ed reserve agents. are by law allowed
to deposit half Of their own Is per
cent reserve with the central reserve
banks in three cities.
"These deposits are principally
made in six banks. The growth of
these deposits has been wonderful
They were in September, 1898. $94,-
394. .21O.5 They were in March,
1911, $427. 767. 1881. In this
period the money in all of the banks
only doubled, but New York's control
more than quadrupled.
"The six banks are the Hanover
National, the New York National,
the New York City National, the
National Park, the National Bank of
Commerce, the first National and the
Chase National. The deposits in these
banks due other banks are greater
than the deposits due individual de-
positors, namely, the six banks. on
March last owed other banks total
of $445, 1O4, AL and they owed de-
positors total of $371, 1854. 7o8.
This gave them control of $816. 468.-
974, or more than $1OO, 900, 600 each.
"The reserves in the three central
reserve cities. due to other national
banks, including that from nonreserve
national banks on March 7, 1911:
New York. city :. . 1919. 597. .5S7. 88
Chicago. ..... .... 15s, ,O83, 336. 10
st. Louis. ... SO, ITS, ,213. 80
Total in the three
cities .$6O6, 85S. .O37. 81
''By the pyramiding system of the
money trust, in the use of sums under
their control. worked through stock |
and bond brokers. these sums have !
been made the basis for billions and |
billions of dollars in credits on which !
to corner stocks and control the pro- |
ducts of the country for the trusts.
and whenever the trust run short of !
money they replenish by peddling !
watered stock and bonds out to So
called "innocent purchasers which
the courts are educated to protect,
and saddle their payments with in
terest On US and our posterity.
"The transactors in stocks and
bonds have kept pace in volume with |
the growth of the reserves held in |
New York city. 1t simply means
that the money belonging to the peo-
pie elsewhere in the country is being
sent, to these centers and especially
New York. and is there used by a |
few gamblers under the direction of