Arizona republican., 1912-01-13

Il
tion sent the price of stocks tumbling
while the mere rumor of an investi-
cation or a suit has many times sent
financial chills running up and down
the spineS of Wall street leaders. The
comparative Indifference with which
the present inquiry is regarded might
be attributed naturally To one or two
reasons. either that the financiers are
secure in the knowledge of their own
innocence or that they feel them
selves so firmly intrenched that they
do not believe that even congress can
shake their power Neither OF these
is the true explanation. however. ac-
Cording 10 men who are in close touch
with the big bankers and are familiar
with the affairs Of their institutions.
The fact is that Wall street al
ready has discounted any possible re-
| suits Of an investigation into its re-
lations To the financial affairs of the
country said banker connected
with one of the institutions aimed at
| in the congressional resolution when
| induced To speak freely on this sub
| jet by the promise that his name
would not be used. While it is ri
Giculous To- assert that there is any
| such thing as a money trust in the
| sense in which the word is applied To
| the big Industrial corporations. or
! that any group of banks. here o.
| elsewhere. could seriously affect the
general prosperity of the country. it
Is true beyond question that the
| New York Banks have exercised. and
still exercise. an important influence
over the financial system of the
| country This is shown clearly
! enough by the fact that i'm times of
stress or panic New York s called
| upon to save the situation. which
| sometimes il is able to do and some
times rot II is also true that within
| the past few years there has been
a marked tendency to combination
and consolidation among the big
! banks. This has been due to the fact
that these institutions have been
| compelled by the very conditions of
| our banking system 70 extend their
| resources in every possible way in
| order to meet the demands certain u
be made upon them whenever pam
| icky conditions arise. PROFESSIONALLY
! the tendency Of what Professor
Laughln of Chicago has dubbed our
ifeuda system of finance. i'm which
the weaker financial institutions are
| dependent upon the stronger. is TO
bring into existence in the financial
| capital of the country a dominant.
centralized. unregulated control of
credit that is in effect. though not
necessarily in form. practically =
banking trust The incentive to this
| result is contained i'm the very con-
| structiOn Of our present banking sys-
| TEN and the movement could not be
halted by congress or any other pow
| er except by change Of this sys-
TEN.
"On the other hand. before ever
congress gave serious consideration
To the question of probing the al
legged money trust. Wall street be-
came convinced that the financial
4 system was To be changed. The
strong popular demand for banking
land currency legislation better adapt
ed To the needs of legitimate bushes;
that has been gathering force evel
since the panic Of 1907 cannot much
longer be denied. IL is practically
certain that such legislation will bC
enacted by the existing congress
either during its present session OF
at the following one. And nobody
realizes better than the Wall street
bankers that any new legislation vii
remove any possibility Of domination
of the country's financial system by
them. That is what | mean by say
ing that Wall street has discounted
the effect of the proposed congress
sionaI inquiry. FOreseeng that theil
sceptre is about To pass they antici-
pate no embarrassing results from
the approaching investigation. Per.
sonally | think that the investigation
will be a good thing if il will brins
Trailing tendency Of our presen
banking laws and 81 make mere GER
tain the enactment of measures tina
will give US greater financial stabil
. ity and so benefit every part of TIL
! country. with the possible exception
Of the small speculative element O
the stock exchanges.
In the mere matter Of size. il
spite of the rapid growth Of some o
our financial institutions. We have n
banks To compare with those Of Flu
rope II would be easy to name off
hand half a dozen or more foreigl
/ Institutions that far exceed the great
est banks in this country. In max
: ing this statement | do not refer I
e the state banks such as the Bank o
2 France or the Bank of England. bu
2 to privately controlled institution
such as are known in England a
4 JCint-Stock banks. There are no les
: than six of these in London alOn
greater than the largest in the Uni
e ted States Among these are Lloyd
= with S3S0000000 deposits. the Londo
5 County and Westminster with 1865,
4 coo. 900 the London City and Midlan
= with $345. 100000 and the Nations
Provincial with S$0O.OOO.O 900 In Franc
we find the Credit Lyonnais with de
G posits of 1865 600 900 and the Comp
= toir d E,scompte with over S2o0000,0
I while in Germany the Deutsche ban
= has S310.0000OO. Compared 10 thes
great private banks the largest {
our American institutions seems rel
e atively puny.'
= Realizing that their control owe
; the credit facilities of the country
= | certain to he taken away i'm the nea