The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1912-01-08

that the gross resources of the state
chartered banks OF New York amounted
of the gross resources OF the national
banks of the entire United States.
The Money Trust.
Figures of this kind and the demon
stration the past year has made that su-
pervision, federal and state, over the
financial Institutions of the country has
reached a very high degree of perfection
will tend somewhat to aIlay the suspicion
have now the potential ability to control
the money of the United States or in
other words, that there is potentially, at
least, a money trust II the committee
which is to investigate the conditions in
the financial world with view to discov-
ering whether or not a real money trust
exists otherwise than in the Imagination,
is to perform its work adequately, it
must, If possible, Investigate the condi-
tons which prevail in the state-chartered
institutions of New York. For If the
banks of this state (Which are prevented
from issuing currency by the tax of 10
per cent which the federal government
nevertheless been able to accumulate re-
sources which represent 40 per cent of the
entire resources of the national banks of
the United States then II Is evident that
there can be no satisfactory investigation
of the so-cal1ed money trust or of a po-
tential money trust unless the scope of
stitutions- But as congress cannot confer
upon any investigating committee the
power TO make examination of state-char-
tered institution It is probable that the
only way in which this information can
be reached would be that which came
from clearing house associations.
It is known by bankers in this city that
the secretary of the treasury, Mr.. Mac
Veagh has become familiar with public
opinion which is strongly expressed in
some parts of the west and which IS Oc-.
casionally voiced in this city respecting
the danger which turks in the ability of
men of banking capital to secure for
ton in more than one banking Institution
Mr.. MacVeagh is understood to favor
legislation which would forbid not mere
" the direct ownership control by a
national bank OF any other institution,
but also indirect ownership or control. It
Is thought in this city that Mr. MacVeagh
means by the term indirect duplicate or
triplicate representation as bank d.
rector by the same person; in other
words, that he would absolutely forbid
the holding by the same Individual of
more than one office as bank director.
Tt is the prevailing view in this city that
if the investigation into the so-called
money power or potential money trust De
conducted on nonpoltical and strong
lines it is inevitable that the
will be compelled to report to
congress that the only practicable way
strong hands of power over credit and
money will be through radical reforma-
ton of the national banking law, and
in the direction which is to be
his week reported to congress by the
rational monetary commission. It is also
said that if the people of the country
realize that whatever danger there may |
Sc of the concentration into a few hands
IF the money power and credit power of |
our banks can be practically eliminated |
~ a thorough reformation of our |
rational banking system, reformation, |
90 with which the state banks will act |
n cooperation, then there will come a |
demand for reconstruction of the banking |
HOLLAND.