The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1912-12-22
THE MONEY TRUST INQUIRY.

The so-called money trust tnvesti-
CATION has been condemned by large
number of bankers and business men
on two grounds. They claim that the
methods of inquiry have been obnox-
ious. and that there has been too strong
n tendency TO seek after that which Is
sensational and politically profitable
Although there Is considerable basis
for this criticism. 1t cannot be denied
that the Investigation has disclosed
and focused attention upon problems
of banking credit and intercorporate re-
lationships which are exceedingly sis-
niecant and which will require the
hest thought and patriotism Of the coun-
try properly to solve. AL the hear
ines of this subcommittee have consul
tinted cumulative evidence of the grave
defect in our banking system which
causes the idle funds of the country 10
accumulate In New York to be used as
a basis for Wall Street speculation and
which prevents the periodical expan-
sion and contraction OF credit TO meet
legitimate commercial and Industrial
needs. The elaborate statistical eS-
hibits prepared by the experts OF the
committee to show that high rates FOR
call loans lead interior banks to keep
their funds in New York. and not to use
them for the local movement OF crops
and other purposes. are without aoe-
ouata foundation The real explana-
tion &c that banks in agricultural sec
tons when crops are to be moved
withdraw their funds from New YORK
and thus cause q curtaiiment or loans
and an advance in the interest charges
for call loans. These high rates or
interest. in turn, attract funds from
other interior bankers, who are not
located in agricultural districts, and
who wish to profit by the stringency
in the New York money market AS
consequence the funds offered IN New
York in times Of strain In the money
market by the country banks are from
a different group Of banks than those
which originally recalled their New
York deposits. Even with these quail
acations. however, the necessity OF re
forming our banking laws TO prevent
this deplorabIe situation IS obvious
The main fact TO be borne in mind is
that these conditions do not arise from
the existence OF sinister money trust,
but from defects in our antiquated ma
tionsl banking system
Probably the most important feature
Of the inquiry ia to be found In the
facts developed relative to intercorpor-
ate relationships. Manufacturing. min
!nE and transportation companies. BY
interiocking directorstes. have been
shown TO be closely allied with each
other and 20 Be ultimately dependent
upon a certain group % financial In
situations. These facts are significant
not Only because they indicate cen
frsl!zatloa CT control Of capital and
credit. but for the additional reason
that they show a concentration In the
direction % Industrial and commercial
activity and IN the power 20 limit
competition and freedom Of opDortun-
ity. - consequences. the problem OF
interviewing dsrsotorstes 10 the mos;
grave and difficult with vhich the
country is confronted st the present
time.
During the decade, Isss-Isss, the hrs'
attempt on isrEs scs;s % throttis
cempstitisa was made ~ ~Esrtismen's
ssrssnsssr regsistiHg TIE Srsdastiss
ana ssis 80 commodities. The noEt
step in creating monopoly consisted tn
the ostabTshmsut a large corporations
under state charters Atths time when