The Richmond Virginian. (Richmond, Va.) 1910-1920, 1912-01-15
BANK INQUIRY IN
DEFINITE SHAPE
MEETING IN wAsHINGroN TODAY
WILL OUTLINE PLAN OF
INVESTIGATION.
BIG BANKERS WANT 1T
BUSINESS rs NOT TO DE UPSET,
But NEEDED REFORMS ARE
CERTAIN TO BE IN
AUGURATED.
nv THOMAS g. sHorWELD.

dental excitement might precipitate
trouble. The stock market hesitation
! 10 due chilly to American fears that
the exaggerated fears of European
bankers may cause them to sell
l. American stocks in heavy volume just
| ~ they did last summer.
But the bankin~ investigation has
| finally taken definite shape. In this
connection there have ben many mis-
understandings. Departure OF sew
eral important f1nanciers for Eurooe
has been connected In the public mind
with this investigation, but without
Justification. There was ample OPP
pnrtuntty to summons these dnanciers
il they had been wanted. They were
/ probably would not have been called
, to testify. The banking problem Ii
| entirely impersonal and the evidence
! needed II In the shape Of documents
. on file In the various banks and trust
! companies that will be involved. Far
from being personal INVESTIGATION Il
/ will not even be confined to any par
ticular Institution for II Is the system
! that II wrong and no one bank or
than any other for the remarkable
transactions carried on in recent
years.
Ranks Opcrated rs Pools
| The whole problem is stated when
one says that the banks and trust
companies have been operated very
largely AZ discretionary pools. There
is nothing Illegal or dishonorable in
a discretionary pool. Such pools have
ant business OF the country. The
only question IN whether banks and
trust companies should be permitted
by law to convert themselves into
such pools Tho laws under which
trust companies are organized make
such institutions discretionary pools
In fact and in theory. The officers
! along those lines. But national banka
are organized under entirely different
lava and II Is the contention Of those
bankers who are In favor or reform
| that verv large percentage Of the
business now transacted by the ma
tional banks and a still larger busineas
! now done by the trust companies
should be left to private banking firms
or to individuals.
The reformers believe that banks
and trust companies should be con-
nned strictly to such classes Of bust
ness as will make 1t possible for tho
directors to be regarded ~ trustees
| for the clients Of the Institutions
| reforms such as are contemplated
will. II put into effect in the near
| future. do no injury to any persons
or institutions. The individuals who
are reaping the largest profits from
the ransactions complained Of can
not take the business as firms or as
individuals and the banks and trust
) companies can go ahead developing
on new lines and finding plenty to
do.
VIII Outline Plan.
It II understood that the confer
ence which the rules committee OF
Congress will hold tomorrow Mt
Washington with Attorney General
Wtckersham, Secretary N1xef and A.
torney Samuel Untermeyer, 10 for the
purpose of outlining = plan to make
| the investigation along such lines ~
will not disturb business. The mat
ter IL one OF extreme delicacy. There
10 no question OF the solvency of any
! institution. The only reason the
| problem has become . pressing one
IL that the banks have 10 much idle
money that In order TO employ Il
they are showing 4 tendency to 20
| deeper and deeper into discretionary
burmese The very bankers who are
formost in the enterprises complained
OF are the most anxious to have the
situation corrected by law. One Of
| thcAE HlONoS an tnin 04EVck4Ou - u0U0
! in their support OF the Aldrich none
tary bill. Malicious nAwspapers have
| deliberately nisrepreseuted the atti-
tude Of tho banks In this connection,
and they are showing tendency now
TO mlsrepresent their attitude toward
| reform. II any Wild sensations grow
out of the congressional investigation
it will be the fault OF the politicians.
These is no mystery about these pools
and their underwritinee and their
stock market transactions In Wall
Street Nothing Of Importance romans
to be disclosed" All that CongreaD
can do II to take testimony ana put
/ In this AhArA ~ osHeial sinfornaataon
what everybody now knows 20 b. true.
and then. to pass laws correcting the
situation.
But investors havs learned from
| bitter experience In the past that
politicians are not always 10 Be trust
cd In years when & prssadshtIaI cam.
paiSn = under way, All ltnes dfvt4-
ing the old parties have disappearsd
and Tar from having distincf plas xoxna
neither or the old parties sesnas 70
cxlls IT. 'osrn "a III th4 dSht t0r ma
torial out o. which to construct =
platform to be used IN the presidential
contest tho banking fraternity feArs
that transactions that ara hOn11k and
proper under the construction Of the
law that has prevailed for many years
viii be misunderstood By the public
through false tnprss1ions caused b.
stump speeches ana hasty hsAdlining
IN the n~wspA pesas
Therefore,. caution y being AAvts-
"a With regard TO stock market trans
actions.
s
| PnrDnsDUno PEANUT leAA1gnT.
(neDsstea - oNgsN nsCeAe = Cel
epanish--SnAll epAh4sh arm 1T %
csnte nor busAel. 0ood demand, Juni-
30 spanish nfM 1T % eents per bushst
i vtfgtniaa--1Ancy Ju@ba eents "a
~ csnts per Dovn1. yaaay hAn1-
! 9ieksA ~ ssnts q ~ eanss 30 peunA.
Prime ~ eaAts Per pound N1aAine-
P!ekea ! esnts q p eeats ~ peunA.
bhsliing steak ~ esats 70 ~ seats
per psunA.
4 Reward = Na1sod.
I With Z FewafA ee 80 already cut
standine. Governor Mann No. oleer-
"a IN a1dl&ional 91e0 ter tAe capture
~ IA NAkktQ, NAHfnA N 41nkE QA1A.
" - = cAasEe 6 AuroeR. ~ 80
! Tswara - sltessa hy'ssum1y ssehss-
Fs;S 81 F