Missouri Valley times. [volume] (Missouri Valley, Iowa) 1874-1931, 1912-09-12
CREDIT Of NATION
IN too FEW HANDS
BIC BANKER AYERS
George M. Reynolds. Chicago.
Admits Present Currency
Laws Are Sadly In Need
Of Remodeling.
WELCOMES INVESTIGATION
Money Should In Some Way Be
Decentralized He Declares
Hopes Congress Will
Follow His Ideas.
WELCOMES INVESTIGATION

Detroit. Mich. Sept. -. In discuss
ing the proposed Investigation by con.
gress OF the so-called money trust here
today. George Nj. Reynolds. president
of the Continental and Commercial Ma
tional bank. of Chicago. declared that
so far as he personally is concerned
he welcomes the Investigation. He
adds, however. that he homes the com
nittee will not undertake tn disclose
the confidential relationship between
bankers and their customers
Mr. Reynolds admitted that the
credit of the nation is in too few hands.
He declared that the major portion
of the country S business is conducted
on credit basis and that some lcgis-
lation should be enacted which would
bring about the derentraliZation Of the
nations money. that the matter of fix
ing credits might be placed i'll the
hands oil a greater number of bankers
than under the present system.
Mr. Reynolds spoke before the trust
Bankers association at its annual con-
vention. and disavowed amy antagon-
ism To the congressional Investigation
by the House committee.
Solution Will Come.
"lselieving. as do. said the speaker
that open minded, honest agitation
of amy question in which the publ,
is interested. prompted by laudal,i,
purpose and kept free from animus and
prejudice. will tend to secure a proper
solution of that question. desire IL
disavow amy aptagonism for or opposi-
tion tn the impending investigation o'
the so-called money trust by the
House banking and currency commit
tee. ON the contrary shall be glad
to do what ! can to operate with
the members of that committee SO long
as their activities are eXerted along tht
lines of an honest endeaNor sn}calated
to promote better methods and higher
ideals in business.
Credit Misapplied.
Banking conditions We're discussed
by the speaker, who said in part
'.Ihe fact that 81 pei ceni of tht
credit and that the use of actua
money in transactions has been re-
dnced to the minimum. makes II VERY
easy for people who do not properly
discriminate between credit and none,
itself to become confused in the appli-
alton of the terms; and especially IL
this likely to be the case With thos,
who have given so little study to tn,
subject that they look upon Il bank a.
being an institution dealing in money
whereas In reality Il bank deals IN
credit. and the money it carries in it's
vaults is only an incident to its husi.
ness. being carried only in an amour
sufficient under the law of averages
to make il possible for the bank to pay
its obligations upon demand undef MOI
NAL conditions.
"Power" and "Trust."
This confusing of credit viii
nlones. as il is related to business. )ia>
caused mach misrepresentation ON thi:
subject aud resulted in more OF less
honest criticism by those who do no1
realize that the 'moneH power as IL Is
lisuailv applied. relates tu the l,uMel
or control Of the credit which may "
extended AGAINST either money or 9th
ei' tangibls liquid assets easily o.
quickly convertible into money aiae
IN view of the temper of the peopl.
toM ard larger agtsregat tion of capital, il
i. not surprising that there has ais
arisen much confusion and Inisconcep-
tion through the use of the words
money po"cr' and money trust. oft
entines, where quotations of alleSet
statements are made, the word 'ur9st
IL, either through confusion or afbi-
trariis-. substituted for the word pow
er, making it appear as money trust
thereby changing the meaning of tn,
s'dtHiHelll as III WdS oflglndliH Hliut.
No Trust, He Says.
II disclam any knowledge. To say
nothing of any connections With any
mooney trust of any character, and
feel 1 would be derclict in my duty il
/ We're not To say To yoii that | do not
believe any such trust exists.
ii little more of the spirit of fair
ness wee. to be injected into consid
fi,t, f,f MI if.ri
the masses of the pe opIe would be less
inclined TO hold prejudice against oi
rritieiz. banks. for. after all. the banks
are oiiy the warehouses; of the cred
its of the community, and the credits
they control are subject to the ebl
and flow incident To the tluctuations il
business.
Of banks In this country upon the the
tory that the money power is in tbs
hands Of too few people.
"Inasmuoh as whatever control indi-
yiduals may nov have of our banking
power comes to them under and BY
virtue Of the national banking law as
the result of a concentration of re-
serves in the central reserve cities anU
through legitimate practices in the or
dinal,y trend of business and not, marx
you through any violation or evasion
~ tli'- Id w VII AiI'iI part Npilti II NV
he far more becoming to crItic:se tbs
l.w which forces this condition rather
than to criti,.ise the men who under
th.t law have The condition forced upor
tnein?
Too Few In Control
AS one who has been accused OF
admitting that The money power u,i-
der existing conditions, or the powe,
10 extend credit in times Of crises rests
i'll the hands Of a few bankers in tais
country whose institutions carry the
surplus booking reserves. have foi
three years past been making plea
to the peopc OF this country to assi5;
in securing legislation providing for .
system OF banking and currency, W hich
it is believed, will v>rS materially de
centralize he money power by placing
il within the control of several thou
sand banks rather than to have il
literally controlled by the bankers in
the central reserve cities, as at pres
ent.
$50 far as ! know and believe the
of the bankers in the central
reserve cities recognize the enormity
OF the responsibility which rests upon