The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1912-03-16

lions at one time upon call. Mr.. Sam
uel Untermyer has called attention y
the fact that if the loans were cailsu
upon any given day it would pc ln-
possible to meet these calls, and nnalA-
ciaI panic would certainly follow
| But the conservatism which, AFTER an
lies behind the utilization OF laIss
amounts of money would of itseit teno
to prevent any monopohstic or drastic
utilization OF the power of nose VIM
had loaned large amounts OF money
Upon call. Their own interests Wouiu
ultimately suffer.
A Great Bankers Opinion
One of the ablest and most con-
spicuous of American bankers, who was
recently speaking of the tendency OF
money to concentrate into a few hanos'
said this tendency carried It's own cor
receive, especially in country as laI sc
as ours If the United States were no
larger than England then, with our
present banking system in operation
there might be constant danger thaC
men who possess large money resources
would be tempted to corner the n1arkeI.
In the days Immediately following the
creating of the national banking sys-
tenn Commodore Vanderbilt ana Danlei
Drew could, when acting in co-opera-
ton, dominate the money market Ihey
could make it or break it, and coulo 90
that by the use of their own capltal
gate not more than so million dollars:
But the very vastness of the United
States and the fact that in all OF the
states there are many national pahks'
each independent, having no other CEN
trail authority over them than that OF
the comptroller of the currency at
Washington, would make any comblna-
ton to control the money market per
manently impracticable If not lmpos-
sible- Moreover, according TO tnls
~ to Ga
power over money resources the greater
is the tendency TO conservation.
In 1907.
Members of each of the two groups
the Morgan and the Standard Oil-did,
in the currency panic of 1907, contri oute
in various, and at times risky, methoos
to furnish the means by which barriers
against the spread of the panic could
be built up If our national banking
and currency system We're perfected in
a general way along the lines adVo-
Gated by the National League of Bust
ness Men then there would be no occa-
sion in the future for services of that
kind by individuals associated with
powerful money groups, because in all
proba bility there never could be a
money panic There may be business
Generalization and even business panic
consequent upon overspeculation; but
with a perfected national banking sys-
tenn it would be practically Impossible
for a currency panic like that of 1917
or the currency famine which took
place in the summer of 1893 again to be
experienced by the American people
They Can Be Independent.
Last summer a committee was APP
pointed by the New York Clearing
House association to investigate the
condition of some 20 trust institutions
which were DESTROYS of becoming asso-
ciated with the clearing house. Some
members of this committee were Off
GERS of institutions which were identi-
fed with the Morgan group and some
with institutions identified with the So
called Standard Oil group. 1t was OBJ
served by the officers of the trust in
situations that in all of the work of in
Vestiga ton, much of which was very
detailed, and all of which surpassed the
scrutiny with which national or state
bank examiners make their examina-
tons into our banks, there was not the
slightest Indication, either by word or
by act, that the members of this COM
mittee had any knowledge that the
banks which they were associated with
were either of the Morgan or of the
Standard Oil group.
On the other hand. the committee was
gratified to learn that in almost every
case of a trust institution which it ex-
amined the evidence was clear that the
management was carried on upon an
absolutely Independent basis.
In one case in particular, that being
of trust institution which has very
high reputation in New York, the COM
mittee discovered not only ideal man
agement and very gratifying conditions,
but Furthermore, that to all appear
ance this trust institution conducted
it's affairs as though there were no
other bank in New York city. Its re-
sources are large, its deposits are great,
its influence is farreaching. Yet it is as
absolutely independent Of either the
Morgan or the Standard Oil group as
it would be if there were no Morgan or
Standard Oil group. HOLLAND.