The Calumet news., 1912-09-11
It Does Not Exist Says George
M. Reynolds in Address to
U. S. Bankers
NO OBJECTION TO THE INQUIRY
But Condolences of Bank Patrons
Must be Protected

Detroit. Sept H. Speaking TO the
subject "rhe Money trust inquiry,
George NJ Reynolds. president of the
Continental and Commercial National
Bank of Chicago. today declared, III
a banker can be forced to disclose q
confidential relationship between his
bank and it's customer. IL would re
uuire but a short step further to CAPT
talize for the qualification of prejudice
the condolences between an attorney
and his client. as well as the secrets OF
the confessional"
Mr.. Reynolds spoke before the Trust
company section OF the American
Bankers Association at it's annual CON
vention and disavowed any antagonisn
TO the congressional investigation 10y
the House Committee
Believing as / DO" said the speak
er, that open minded honest agita-
tion of any question in which the pub
lie is interested. prompted by a laud-
able purpose and kept free from ami
mus and prejudice, will tend to secure
a proper solution of that question.
desire to disaVow anv antagonism foI
or opposition to the impending investi-
cation of the so-callcd Money Trust
by the House Banking and Currency
Committee; on the contrary. ] shall
be glad to do what | can to cooperate
with the members Of that committee
so long rs their activities are -exerted
along the lines of an honest endeavor
calculated to promote better methods
and higher ideals in business"
Discusses Conditions.
Banking conditions were discussed
by the speaker. who said in part;
The fact that 95Pt of tho business
of this country rs done upon credit, and
that the use OF the actual money in
transactions has been reduced 10 the
minimum, makes 1t very easy for peo-
pie who do not properly discriminate
between credit and money itself TO
become confused in the application of
the terms: and especially is this likely
TO be the case With those who have
given so little study 90 the subject that
look upon a bank az being an institu
ton dealing in money. whereas, in
reality a bank deals in credit, and the
money IL carries In its vaults is only
an incident TO it's business. being car
ried only in an amount sufficient under
the law of averages 20 make IL possible
for the bank to pay it's obligations up
on demand under normal conditions.
This confusing of credit with men
ey, as il Is related to business. has
caused much misapprehensior on this
honest criticism by those who DO not
realize that the "Money Power" as IL
is usually applied relates TO the power
or control of the credit which may be
extended against either money or other
tangible liquid assets easily or quickly
con tertible into money; and i'm view
of the temper of the people toward
large aggregations of capital, II Is not
surprising that there has also arisen
much confusion and misconception
tUIOuEn lhe use VI tllt NpihS moH
ey Power" and Money Trust" Of
tentimes. where quotations of alleged
statements are made. the word Trust
is. either through confusion or arbi-
tyarly substituted for the word Pow
cr' making II appear as Money Trust.
thereby changing the meaning of the
statement as it was originally made.
No money Trust
Il disclaim any knowledge, to say
nothing of any connection with any
Money Trust of any character, and
feel / would be derelict in my duty II
| were not TO say TO you that do not
believe any such trust exists.
"If little more OF the spirit of
fairness were to be injected into a
consideration and discussion OF this
subject. the masses of the people
would be less inclined to hold prejudice
against or criticise banks. FOR. after
all the banks are only tho ware
houses of the credits of the community
and the credits they control are sub
jecls 10 the ebb and now incident TO the
fluctuations I'm business.
II have heard more or less criticism
of banks I'm this country upon the
theory that the Money Power is In
the hands OF too few people.
"Inasmuch as whatever control indi-
vidlals may now have of our banking
power comes 20 them under and by
virtue of the National Banking Law
as the result of a concentration cf re
serves in the central-reserve cities and
through legitimate practices in thc
ordinary trend Of business. and not
mark YOU. through any violation OF
evasion OF the law on their part, would
Il not be far more becoming to criti-
else the law which forces this condi-
tion rather than TO criticise the
men who under the law have the con
ditlop forced upon them?
Legislation Is Needed.
"As one who has been accused of adj