The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1912-05-23

left" he said. 1T is doing good work
all the time, and if you can drop in
there moment you are likely to find
them wrestling with the age-old
problem, why is a freight rate?' OF
When is a telephone not a telephone
and exempt from the jurisdiction OF
the commission
In. the same corridor. on your
right, is DR.. Crum bine-a Kansas in
stitution all by himself. The won
derful things which he and his as
sistants do to roller towels and bed
bugs and hotel keepers and other
bold, bad people are too long a story
to tell. Be sure to drop in and see
the doctor.
ION the second floor is the bank
ing department-7which is really MAX
ing a noise like a useful institution.
But the banks and loan. associations
and trust companies of Kansas are
so ably and carefully, managed by
you, ladies and gentlemen, that the
banking department has been enabled
to extend its activities into other
fields and has more or less effective
ly put the kibosh on the vendors and
brokers and commission merchants
who deal in blue sky
"As to the attorney generals de-
partment, we have for exhibition
many trophies, both of war and of the
chase. We can show you that during
the present term we have captured
more booze and booze vendors and
crooks and scallawags, male and fe-
male, than in all the history of the
department for the first half century
of it's existence. AS souvenirs of our
activities we can show you daggers,
stilettoes, pistols, dynamite and let
tiers from the Black Hand-and a few
other communications: OF course, the
State Historical society on the top
floor can show q larger assortment of
that sort of stuff, but it has made a
specially of their collection and has
in E11Gi
81 hope you will have a profitable
and pleasant session, and in behalf of
the capital city, and the state govern
ment, l greet you and welcome you.
Professor McLaughlin's Address.
Monetary reform is one of the ques-
tons of paramount importance which
is being considered by the bankers.
Professor ]. Laurence Laugh1in of the
University of Chicago spoke on this
subject this afternoon.
Every business man of Kansas who
is honestly in favor of a sound bank
ing system ought to welcome the con-
gressional investigation of the Money
Trust" said he. eff the investigation
present Capitalization of credit, then
congress will have to reform the bank
ing laws SO that this dangerous CEN
tralizatfon will be abolished. The duty
of the hour is to protect normal bust !
ness from financial sharks whether in |
New York or across the Mississippi" |
Showing how idle funds flow to New |
York, he advocated the establishment
of a National Reserve association and |
the creation of a national discount |
market as a sure method of abolishing |
this. Continuing, ne said:
Power of the money Trust"
What is the Money Trust?' We
may define it as combination of large
capitals for the purpose of controlling |
great credit operations. The man who
has a scheme to be financed will find
his desired loan rejected by every in
sttution to whom he applies, if he
does not pay the big levy demanded
by those in agreement. In fact, loans
from banking houses to float :. large
issue of railway bonds, municipal Sc
curities, stock of Industrial reOrganiza-
tions on an enormous scale, or a legion
of modern enterprises, are taken, and
amazingly big amounts of these securi-
ties are exacted by the lenders for
successful promotions Some persons,
or estates, have grown in wealth be-
yond all expectations, and their par
ticipation in loan operations is regard
ed as inspired by selfish desire for spe-
cia1 gain, at the expense of the small,
and legitimate, borrower.
ITO maintain this control over the Il
money market to give themselves
special advantages in supporting their
own enterprises, or those in which they
very likely to invest their vast wealth /
in bank share=, in railway companies Il
industrial companies and the like. By
interlocking directorates,' so called
they may selfishly influence loans tc
their own enterprises; or in time of l.
stress, provide help to favored com Il
panies, while sacrificing those not taken
into the agreement. This, in brief, may
be regarded as a fair description of the
Money Trust
Wall Streets Grip on Bank Funds.
Then, what is the relation of bank
Inc ref . |
whether this statement as to the
and character Of the Money
Trust is extreme, it is obvious that the
normal business Of the country in buy
ing and selling staple goods ought to
be protected from any sinister finan-
cial domination by immediate and suit
able legislation. Then, we ask, would
a National Reserve association give
this protection? The vast mass OF
local loans the country over is based
on the production of staple goods and
their distribution to the consumer. On
the other hand, as things now go, our
banking system encourages the flow OF
surplus funds to financial centers
where they can be used in speculation,
or in furthering great promotions.
Which should be favored? There
can be no doubt as to the answer. The
essential purpose of the National Re-
serve association is to separate these
two KINGS of operations, and to favor
pre- eminently loans to those doing a
strictly commercial business, as OPP
posed to speculation and promotions.
AS basis for loans, there Is a vast
as affecting the permanent
prosperity of the country between
commodities passing from the pro-
Queer to the consumer, and the invest
ment securities in capitalized form of
the organizations producing the COM
modities. Loans supported by the for
mer are short time and commercial:
those supported by the latter are of a |
long time and investment character |
The Money Trust is concerned with
the datter, the National Reserve asso-