The daily banner. (Cambridge, Md.) 1897-2008, 1912-12-19
new YORK GE
NATIONS CA$H
Great Sums Lent by CouIl ''y
Banks in Street |
ATTRACTED BY HIGH Raj Is
Money Trust Witness Says OF
Town Deposits Have Reached

600, 900. r
Washington, Dec 18.-Attractiau
money from small banks througl H.,
the country to New York when e.
money market showed high rate NC
loans was taken up by the mi,
money trust" investigating con!
tee. lart
J. B. Niven, an accountant, pres no
ed a mass of statistics showing !,
country" banks had on deposf -, :,
thirty-two New York banks and IN,
companies on Nov. 1 1928. 000. 900. o.
in addition had lent on stock exchf I'M :
securities $24O, 100000. At that ioh
he said, the money market was col,
On July /, with money easy, he oos
the country banks had only $141,
900 out in stock exchange loans. -.
The statement showed, he said, a.
1905 country banks maintained ov,
counts in New York. The cutoff :,
banks, he said, had $9,293,091,00f 10
capital and surplus. Their averageeon
posits in New York were about 5
100000 n,
Niven contended that if half of !, :,
money in New York that is devote 80
stock exchange purposes could be roc
leased by cutting down Wall ST. y
speeuia.ion' lheie "ouio Do uu tn,
$350,OO0,OO0 made available for
general needs of the country. Wv
Frederick Lewisohn, of the ,otb
York banking firm of Lewisohn Bl ~
ers, decided to answer question 10,
~ niiu Wy INC au sui
an incident which threatened to re ~,
in Mr.. Lewisohn being reported to =.
house as a recalcitrant witness and. =
ing hailed before the supreme couI, y, -
the District of Columbia to be
ished.
mi' "isonn eou@eo ida,
journme nt of the probers on MOI -
by refusing to reveal the profit D.
on the fotation of the California, =,
troleum company by his firm, ant .. ,
William Solomon & Co. and HaH3+h
ten & Co., the three firms forming
syndicate to float the concern. ~,
Lewisohn produced copy of -,
syndicate agreement under WI,
Hallgarten & Co. and William ~
.non ~ Snu.oo|o mi;
handled the stock of the Califo
Petroleum company. He also urodl =
a statement about certain letters -
distributed the interest In the tran
ton.
iou na'0 neSl'1'ou' ..o init
on'einyei' Eouneei LII 'no ucl
tee, "to tell the committee how M
of this stock listed on the exchaa1 :
was a profit to yourself and your ~,
sociates. Do you regard that as yt,,,
private business?" YES" replied
witness. n
But do you think that the -pu
ought to know how much of as
listed on the exchange represants-
profit of brokers and interE SD
uanua. hon,-,aaa ,1.la rAsareAA.lts-5 M =
ace Of the property to the VEIN
Lewisohn said he thought such kdgWl
edge might benefit the investing pub
lie.
J. F. Peter, of Lewisohn Brothers
tes..ied that he assisted in conduct
ing stock market operations in Cali
fornia Petroleum.
you arranged your sales and pull
chases to fit the situation as to wheth
er the public came in or not, ism
that it," suggested Untermyer. mo
we sold it as there was a demand 70
it on the part of the public" replies
Peter II
You gave out buying orders to sur
port the market?" YES"
and gu gave selling orders to ige
rid of the stock?" yes"
Peter testified that the stock wa
sold when delivered" on the curb be
fore it was listed on the New Yorl
stock exchange. The first day on tn
exchange it was quoted at sc. AM
within the next month the capita
stock was sold three and one-hal
times over.