The Washington times., 1912-02-11

| NEW YORK, Feb. 11.-Another of
Wall Streets restraining influences, the
fear of an investigation of the so-cahed
| Money trust" by radicals conducted
along radical lines, was eliminated from
the situation during the week, but the
| stock market made no particular re-
| sponse to this happy deliverance, and SO
/ far as activity and price changes were
| concerned, no one would ever have
known that this feature had been re-
| garded AS highly disturbing factor.
/ Opening quotations on Thursday, fol
lowing the Democratic caucus of the
preceding evening, were a shade firmer,
but there was no increase in the volume
| of business and, before the end of the
, day, the market developed a heavy ten
dency except for the Copper stocks,
which were favorably affected by de-
Velopment peculiar to that special
group.
| 1t Is, of course, conceivable that the
failure of speculative issues to develop
| aggressive strength, as a result of the
| Washington news, arose out of the fact
| that while the radical program of Con-
| gressman Henry for a special inVesti'
| cation by a select committee was voted
down there Is to be, nevertheless, ar
investigation of banking institutions
and methods by the regular House
| Committee on Banking and Currency
But Wall Street never had expressed
| alarm over an investigation of this
character. What 1t had feared was g
hara ssing, keel-hauling inquiry alone
the lines proposed by the Bryan-Henry
Lindbergh combination. guided, pos
sibly, by an astute lawyer like Mr.
| Untermeycr.
Encouraging Conservatism.
All the recent discussions in the
financial district concerning this sub
ject have concentrated upon an inquiry
of radical nature and one might have
expected more enthusiasm over the sue
| cess of the conservative element in the
Democratic party under the Leadership
Of Mr.. Underwood. However, for al
that the Stock Market continued inert
the outcome of the caucus Is by NJ
means unfavorable and, no doubt, mor'
will be heard of it as an encouraging
feature as the country draws neare
to the time OF the national convention
or to election day. The financial dis
| triCt has for so long a time been
stranger TO developments of a conserva
|
unquestionably will bear the presen
manifestation in mind.
AS for the investigation itself there i
an abundant field for one conducted
in a sober manner by a sane committee
For one thing it should certainly Ia!
at rest the wild ideas that prevail ii
I some quarters concerning the machina
lions of the money devil" II, as
-. t--,A A.,,
shown that through holding companies
stock ownership in other banks. an'
similar devices. any group of men eX
ercise a control over the Instrumental
ties OF commerce sufficient to constitut
money trust" the quicker it is dis
closed and done away with the bette
for all hands, including Wall Street
But is will be difficult to dcmonstrat
that anything of the kind exists.
May Clear the Atmosphere.
Perhaps the result of the committee
work will be to clear the atmospher
of the lurking suspicion that there
something rotten in banking and finan
cial methods. No one. for instance, ca
read the report recently made by tn
Hadley committee on railway stock an
bond issues without realizing that tina
body performed a real service in put
ting the question of railway Capitaliza
| tion fairly before the country, and
would be a grand, good thing II the in
quiry into "the banking and Currenc
conditions of the country for the pun
pose of determining what legislation
needed" should result in an overthrow
of some idle superstitiOns Concernn
Wall Street and the money power.
In the hands of the swindling fisCs
agency promoter the alleged "mone
trust" becomes a Mumbo Jumbo. 1t
used in the lying prospectuscs of nearl
every thieVinS, gct-rCh-quick Compan
to turn the hap!ess victim away frOT
decent securitles-brought out by Wa
Street and the ''mOney tIust"-in OrdC
to rob and plunder him, through worth
less shares in wildcat mine and o
companies, EverGlade land, or wate
swindle, and a wide variety of visiOnar
undertakings foredOomed to failure. A
.rou and steel enterprise in the Wes
promoted by man with a dubious rec
ord failed recently because it could nc
procure capital. and the collapse Wa
laid to the money trust" promote
who bankrupted one railroad and tw
financial institutions cannot sell hi
bonds in A new enterprise because II
and his schemes are distrustcd, and, {
course, he charges his difficulties
the money trust
Some Desirable Banking Reforms.
II an investigation of the banking an
currency situation should result in Sc
ting matters like the above in the
proper light, 1t will be of incstimab
good to the country and inestimab
good may result of the inquiry. Also,
the way Is paved for proper bankin
system, built on the lines Of the Aldric
bill. What makes a money trust pO
sible, If such a thing exists, Is the vai
! accumulation of money ir New Yorl
due to the operation of the anachronist
national banking system. If the inquiI
should result In checking the practiC
of New York banks and trust COmpanit
in buying a portion of their depos
from OF t-Of-tOwn banking institution
il may accomplish a world of good.
1t is due, in part, to faulty working
OF the national banking act; and,
mart. to the practice of New York banl
allowing interest on out-of-toWn bar
balances that vast sums of none
which are called reserves, but which
not reserves. and huge deposits subje
| to Withdrawal on demand, reach Il
! metropolis. All business, all SpeCu
tion, adjusts itself to these great Il
huXCs of money. Then something com
along Business springs mp In the We
Or South or there comes a demand f
funds to move the crops. The interi
draws on New York and money rat
advance: II draws more, and still MOI
and loans are called right and left; /
terest rates advance enormously, StOC