The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1911-12-28
Independence of Individual Con-
Germs to Be Guarded.
Blow at Money Trust Planned
by President Taft.
EAST AGAINST PLAN
Declare 1t Will Result in 'Dum-
my Directors.
Holland Says Inspection VIII
Prevent Such Action.

New York, Dec. 2S.-One paragraph
of President Taft's recent communica-
tion to congress in which he warmly
recommends legislation by which mod
ification and perfection OF our bank
ing and currency system can be Sc
cured has focused the attention OF
some of the leading bankers of this
city The president expresses the hope
that legislation will be so perfected as
to make it possible TO maintain the abb
SOlute independence of each individual
bank and that every one of them may
be put upon footing of equality OF
opportunity with every other one. The
reason for this hope President TAFT
states in a few Words-namely. that
if there ever be any tendency under
the revised banking and currency sys-
tenn to bring about a consolidation OF
money or banking power this ten
dency may be surely blocked at the
very beginning of it.
Some of the leading bankers OF this
city are convinced that behind this
recommendation of the president lies
purpose so to legislate or so thor
oughly to establish rules in the clear
ing house associations that no bank
director will be permitted 10 serve iu
that capacity in more than one bank.
From certain rather guarded re-
marks which have recently been
made by some who have been in close
touch with members Of the national
monetary commission, IL is learned
that the commission has discovered
that there is a rapidly growing senti-
ment among the American people
that the holding OF two or more direc-
torships in national banks should be
prohibited. That sentiment Is belieN-
ed to be behind the intention to in
vestigate thoroughly the so-called
money trust
At the recent meeting Of the Ameri-
can Bankers association in New Or
4 4 Ia. fHfV
or even a greater number of director
ships by one person in national banks
was a subject of about as frequent in
formal discussion as any other tt
was learned by bankers from New
York. who We're at that convention
that in Kansas. in Texas. and IN many
parts Of the southwest the bcltet -
earnestly expressed by the people thaL
one OF the chief menaces that now
hr< in our national banking system
is the holding of two or more nationai
bank directorates by the same person
In this city there is not the slightest
doubt among bankers that the presi-
dent himself feels not merely that tnls
public sentiment is justified, but that
IL is vital to the maintenance or
banking and currency system in Which
every bank will be upon perfect epual-
itv. so far as opportunity is concerned
with every other: that the right TO
serve as a director Of n national bank
be limited to service I'm one bank
II Has Often Been Discussed.
The tendency to duplicate or trip
licate service as bank directors was
not particularly noticeable until just
after the era of great Industrial ana
financial combinations began. In the
time of Moses Taylor, who was the
real creator OF the American clearing
house association. and of John Thomp-
son. who was the father OF the nation
al bank system. and Of George $. Coe.
the banker Of New York with whom