The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1912-06-08

comptroller of the currency not even
congress itself, could have the right
to make any inquisition into the man
agement or affairs of national banks.
There is probably not a banker in
the United States who does not feel
that the proposed amendment to the
national banking act. which, if 1t be-
comes law, will permit congressional
committees at any time to make any
kind of investigation into the man
agement and affairs of the national
banks will prove to be a serious men
ace not only to banks, but to bust
ness men. 1t will make it possible to
expose to the country all of the pri-
Vate business of every national bank
in the United States. Bankers feel
that the injury would be greater to
business than to banks themselves.
This phase of the subject has been
presented to the senate finance COM
mittee and undoubtedly explains, in
part, at least, the care with which this
committee is understood to be consid-
ering the subject. Another phase of
the proposition which has been
brought before the senate committee
parts of the country than New York
is that the proposed amendment to
the national banking act will practi-
cally paralyze the comptroller of the
currency, or at least greatly impair
his ability to do efficient work
Not a Local ISSUE
1t should be reported that the OPP
position to testify before the Pujo
committee or to submit answers to
very detailed and searching questions
is not confined to New York city. 1t
is true that the suspicion is very
strong that this investigation was be-
gun chiefly with intent to reach New
York exclusively. But it has been dis
covered that the banks of New York
and the banks of the entire country
eral questions of finance, currency
and banking are concerned that it
would be impossible to get at the con-
dition in New York without also
learning conditions in all the country.
The protests which have been made to
the methods proposed by the Pujo
committee are quite as strongly word
ed by bankers who represent what are
sometimes called the country banks
as by any banker of New York.
The Coffee Trust.
At one of the first session. held by
the committee which is investigating
the socalled money trust testimony
was given by Herman Sielcken, who
is known the world over as the ablest
authority upon coffee production,
coffee plantations and the preparation
of coffee for the markets the trade
has ever known. Mr.. Sielcken's
knowledge is encyclopedia. He is IA
miliar with the coffee plantations of
Java and Arabia and knows what the
relation of these plantations to the
coffee market of the world is. He has
expert knowledge of the coffee bust
ness of Central America and of Mexf-
co as we'll as of South America. Mr..
Sielcken testified to the socalled
money trust investigation in this city
respecting the valorization of Brazil
ian coffee. His examination was in
complete and yet his testimony, brief
as it was, has been used as a basis
for the assertion that J. P. Morgan &
Co., the National City bank and the
First National bank of New York use
their unlimited capital to curtail the
production of coffee and to raise the
price of coffee from six to fifteen
cents a pound.
Whatever criticism may justly be
made of the manner in which Brazil
IS marketing coffee in the United
states should, it is believed, be the
oasis for diplomatic correspondence
he coffee is in the ownership of the
great coffee-producing state of Sac
Paolo, Brazil. So far as the banking
houses are concerned, their trans
actions were purely financial. 1t was
4 national loan which they made. 1t
was made to the state of Sac Paolo.
It was guaranteed by the Brazilian
government The bankers accepted
eoffee brought to the United States as
collateral security for the loans, just
as they would accept cotton or wheat
Is security for a loan made upon
,hese commodities. These banks have
40 interest whatever in the coffee. If
L profit is made from the sale of COT
Tee that goes exclusively to South
America The bankers of New York
who made the loans and who sold the
securities and the public who bought
these securities are regarded as no
more responsible for the rise in the
price of coffee than the bankers who
bought the bonds of Japan at a time
IF the Japanese Russian war were re-
SponsibIe for the death of the Rus
slams who were killed with the arms
md powder purchased with the pro-
,eeds of the Japanese loan. There Is,
ground for diplomatic
correspondence between the United
States and Brazil upon the subject of
he valorization of this coffee, but the
Dan which was made by the New
z ork bankers was a national loan and
might have been made solely upon the |
credit of Brazil even though the addi- !
-ionaI security of the coffee itself had
not been offered by Brazil.
HOLLAND. |
@mkuMR~ @W~MR- ~~WmW