The Richmond Virginian. (Richmond, Va.) 1910-1920, 1912-06-08

power. tho power itself is impressive Al
though there is so far no practical suggestion
IS to how the unofficial association OF great
banks may be destroyed their potential ca
pacity to Cypress or corrupt is so tremendous
as 10 6c a menace for its mere existence. On
mere than one occasion this community of
interest Of many millions have saved the sit
nation Ii follows that, in extreme circum-
stances. It might be used to ruin as we'll as
20 preserve.
Yesterdays TWgtalGn carried in connection
with meeting OF the Congressional sub-com-
R.ittee in New York an impressive analysis
81 this power. Six men directly control the
policy. and therefore the resources, Of over
cal institutions in New York Indirectly,
these great institutions contyol tlc banks of
the country Bat indirectly also. the six
men who are in charge of the financial bat
reries of the metropolis are themselves con-
tfolied by practically half that number Of in
terests The six control the hundred banks,
The hundred banks control the thousands. all
are controlled by J. Pierpont Morgan, by
Thomas E--R4aH,- hr-tbe-s standard oil
q crowd, By George +. Baker. Or this con-
troll the Clearing House is the most visible
signs. and of its operations the testimony of
William Sherer, for twenty years its mana
ger. to the effect that:
The New Yo-l, clearing house is a law unto
G*eit' Ih"re Is no legal check on It's great and
extraordinary powers. Il actually issues gold
and silver certificates in imitation Of the pauer
rurl'ucy OF the country. which ia used by the
members Of the association practically TO in
gEE4se- the Circulating medium La times ~
MI it issues clearing house certificates at
viii to brace up the credit Of its members or
such * them rs It pieases and other financial
institutions that may not be members.
The eli airing house committee. without let
or hindfance, ruin any bank or trust COM
u ny whether ii be member Of the association
or merely hy clearing through members h" dc
ming It The privilege of clearing directly or in
directly Mr.. Sherer admitted that bank
% trust company In New York--not eVen the
strou gest-couN assemble sufficient supply Of
money with which to withstand sudden run,
speh as would follow expulsion from The clear
ing house.
Should even thc strongest bank or trust
company in the civ be taken over by new Own
er4 1t would not necessarily retain its ncnher-
sfip in the association The clearing house
committee could refuse without 10 permit
the aid member tina; had fallen 5nto new hands
TO remain member.
All of this is. Of course, disappearing. T.
is good campaign material, and its makes the
average man ada-te his discomfort At poverty
q dull rage against riches. But the erpoSe
ITSELF Is not remotely suggestive of remedy.
The Investigation is only succeeding in con
frmng q popular impression. Money is
power and the big banks in question have
the money. The big men have the banks.
You cannot take one from either. without i'm.
mediately taking from all. These banks are
powerful and potentially evil because they
control the circulating medium, and they con-
troll that because there is no financial system
in this country which provides. as is provided
in all other countries. an elastic currency res
ponsive to the ebb and flow OF commercial de-
rand There have been number Of money
bills, hut beyond commission which made
q report foredoomed to failure legislation,
or serious effort at legislation, TO remove the
cause that makes the Money Trust possible.
We would hope for more from the investi-
CATION, If there were any promise that it
Is being made with any sincere purpose to
relieve the condition it seeks to disclose.