The weekly chieftain. [volume] (Vinita, Craig County, Okla.) 1905-1913, 1912-12-20
1907 PANIC HOW
BROUGHT ABOUT
Henry Allen Explains the Money
Trusts Power and How Il
Rules the Nation.
lBy Henry j. Allen.l


in 1907 word flashed that the banks
would pay out no money the next day
we heard all about the money trust.
When on Tuesday morning we went
humbly and Obediently into the bank
to dray the So in currency which was
the maximum limitation the banker
had assumed to set upon what we
lcould have from our own money, he
talked to us about Wall Street, the
money center, and the need of moving
it further west. II we remember cor
Irectly some indignant western bank
ers declared that we would move it
west to where a few speculative men,
bers of the money trust could not tie
Iup all the cash and bring on q money
lpanic, with all its attendant tragedies,
in the very high tide of prosperous
times.
The ordinary depositor came out of
the depressing episode with a mem
Iory of clearing house certificates. of
Ivague terms like elasticity of the cur
Irency and also a fixed animosity to-
Iward the money trust, concerning the
definite existence OF which he had few
rational ideas. He intended to look
it up some day and get an intelligent
idea of what it was all about.
Then He Called it Politics"
Then the banker resumed his nor
lnal habit of honoring individual
Ichecks and in the time even the over.
draft was performing again its mel.
Iancholy functions with no more than
tits customary reluctance. Normal
times having returned, the ordinary
business man lost interest in the
money trust and when he heard it
mentioned he called it politics. When
it was talked about by the progress
sives in the last campaign he remem-
bered that the standpatters had warn
ed hi mthat ambitious demagogues
lwere always trying to make political
capital by attacking the rich.
Yet the money trust has been doing
business at the old stand ever since
the bankers panic-iust as it did be-
fore. The disclosures of the congress
sional investigation now going on
Ipromise to be sufficiently sensational
to reawaken even the interest of the
ordinary business man in the money
trust
Five Men Control 400 Millions.
The testimony already has shown
that 400 million dollars of bank funds
in New York are absolutely controlled
by five men. These men, led by Nor
gan, dominate the New York clear
ling house committee. Water Frew of
the New York Corn Exchange Bank,
chairman of the celaring house COM
mittee, after skillfully lodging for two
hours, finally admitted that the 1907
panic, precipitated by the failure of
the Knickerbocker Trust company
tional Bank Of Commerce to clear for
Knickerbocker Trust company. Mr.
Frew admitted that the Knickerbocker
Trust company would have been
cleared if it had belonged to the New
York Clearing Association, that it was
solvent and afterwards paid all its
debts and had a good sized reserve.
lie admitted that the safety of the
business community would have been
better cared for if the Knickerbocker
Trust company had been a member
OF the clearing association and that
lit properly was entitled to member.
ship, but that it had not been admitted
because, to quote the only reason Mr..
Frew gave, 1T had been thought best
to limit the number of institutions in
the association"
Throughout the day, while Mr.. Frew
lodged from one subterfuge 10 an
other, he was obliged to make many
admissions and the sum total of all of
them is that the New York Clearing
House committee has autocratic pow
ers in the money world of New York,
which means the real money center of
the country.
How Wall Street Attracts Cash.
Mr.. Untermeyer succeeded in making
Mr.. Frew admit that in the fall Of the
year, when money is needed through.
out the country to move crops, the
price of call money in Wall Street, the
only open money market. in the coun
try is bid up in order that cash may
be attracted to Wall Street for specula
tive purposes.
Mr.. Frew testified reluctantly that
on November l of this year, when call
money was at per cent, the ninety
four out Of town correspondents oi
the Corn Exchange Bank had a bal
ance of $3,044OO0 on deposit with thai
: bank, while on June / last, wheI