The sun. [volume] (New York [N.Y.]) 1833-1916, 1911-07-28
TO HUNT FOR MONEY TRUST
Congress SEAR( HLiGHT TO BE
III RNED ON VAIL STREET.
I.intibcrEh Of Minnesota says There Is a
BANKING Combination which Has
Power to Control Credit aud BrinE
on business Depression anti panics.

on business UcprcsslON anu Vaulcs.
W,suiNG1 -. July ~ The "monev
trust" of Wall Street is TO he invrsii-
gated by Congress. In order to deter
mine whether there is great banking
combination which has the power to
control credit. exchanges aud deposits
and to bring on business depression and
panics. as charged by Representative
Lindbergh Of Minnesota before the
House Committee on Rules to-day, the
committee at its next meeting w i'll report
a resolution directing an exhaustive in-
vestiGation of the subject.
No decision has been reached as to
whether the inquiry shall he conducted
bv the Monetary Commission or bv the
House Committee on Banking and Cur
rencv. Mr.. Iindbergh doesn't care who
makes the investiga. ion so long a. 1t
does something.
Representative Weeks Of Massachusetts,
who is a member of the Monetary Com
mission and a bankcr. also appeared
before the Rules Committee to-day on
the Lindbcrgh resolution. While he did
not oppose the inruirr and indeed
rather urged that the Monetary Com
mission he instructed To make IT, he
scohed at the idea that there was such Il
thing a. n money trust
III had the time" he said. II could
show this committee that such. n thing
rs an efficient combinat ion Of capital IN
banking matters could not e>ist
But suggested REPRESENTATIVE Nelson
of Nisconsin. member of the Rules
Committee. could "uch Il money trust
not go beyond banking and vet ohect
banking"
Mr.. Weeks admitted that this nigh; be
the Crsc
The Lindherch resolution recites that
"our present system Of money exchange
and credit entails on the people enormous
losses. due presumably to speculation.
gambling aud manipulation. and de-
clares that these prsctices are directed
throug gh well detned centres. the greftest
Of which. II ia believed does actually
have the power of controlling credit.
eNchsnges and deposits TO the - 'tent nj
being TCtu1ly able IL bring on bus:ress
depressl>rs and even business disaster"
Representative | indhcrgh. who l. q
radical Republican ilsiirceOt. in rrcu'nC
. IN fPvor OF his resolution. referred to the
recent organization Of the National City
Company a subsidiary corporation of
, the National city Bank Of New York.
with the avowed intent Of making tn"
National City Company a holding con
cern. This. he thought. was most sig
nifiCant. and indicated that the subsidiary
corporation might tTa1lc III tne STOCKS OF
other banks.
do you think that is in violation of the
Sherman antitrust law" Mr.. Hardwck
inquired
Il think So" Mr. Lindbergh replied
and vet that National City Company is
State corporation. and nothing has
come out yet in an official way To indi-
cate that ii will operate in other States
Mr. Lindbergh also referred to the
recent gathering of steel interests in
Europe and suggested tina, all these things.
ind eating the eNStence of money trust,
should he inquired into.
! Discussing the present financial system
Mr.. Iindbergh said 1t was now possible
| for q group OF men to organize Il bank.
/ pay in ~ per cent. of its capital and
then borrow sufficient money from the
deposits to start another bank. This
| process could he repeated indefinitely he
said. and he knew of cases where it had
been done.
( Representative Weeks interrupted at
this point to suggest If MIR I.indberCh
had Information of his sort in his posses
sion he should not delay minute in bring
ing it to the attention of the Comptroller
3 of the Currencv
MIR Weeks said he appeared leiore
/ the Rules Committee rs a member of
, the Monetary Commission. hut without
authority from that body. which had not
/ held meeting since the Introduction Of
the LindberCh resolution. He thought.
/ however there had been some misap-
prehension ~ to the scope of the work
of the commission. and he wanted to tell
the committee that the commission =
work covered everything in the Iindbergh
resolution with the possible exception Of
! the proposed inquiry to determine the
| existence of money trust
will II inquire into the reserve prob
! lem?" MIR. Hardwick asked.
! "Oh. yes" replied Mr. Weeks. The
trouble with the reserve as at present
constituted is that it is not availlble in
time of financial stress. The Monetary
Commission will offer a solution OF this
problem. The commission is bipartisan
and is doing its work absolutely outside
of political lines. The questions Of money
and banking never have been so thor
| oughly inquired into. either in this coun-
try or elsewhere. as by the Monetary
Commission"
Mr. Weeks sdoied that the commiss ion
certainly would look into the creation
| of the $1,000, 900 subsidiary corporal ion
by the National City Bank.
In reply 10 quest ion by Mr., Hardw ick
concerning the alleged money trust" :"
Mr. Weeks said that the trouble was that
the banks of the country did not CO.
operate. They acted individually AID in
dcpendsntly until panic times and then
he'd To get together for protection. There
was no money trust, he was sure, but real