The Barre daily times. (Barre, Vt.) 1897-1959, 1913-03-01
SAYS HOUSE MONEY
TRUST COMMITTEE
The Majority Report Wants
the Clearing Houses and
Stock Exchanges Curbed

| regulations as to the conduct OF M
tional banks, clearing houses, and stoc
exchanges were the findings of the Hous
money trust committee set forth in tn
majority report of its investigation
filed in the House late yesterday.
The report, signed by Chairman Puj
and the six other Democratic member
of the subcommittee which eonducte
the money trust probe. is a voluminou
document accompanied by two length,
bills, one to regulate stock exchange
through forbidding the mails to ex
changes which do not comply with fed
eral regulations, and the other to regu
late clearing house associations through
forbidding national banks to join sucl
associations unless federal regulation
are observed. In the latter bill, pro
posed as an amendment to the ma
tional banking act, the conduct of ma
tional bank officers and directors is close
ly restricted.
The report as submitted to the House
is largely the work of Samuel Inter
myer, counsel for the committee, who
composed the original draft of the re.
port and who drew the bills presented
On the question of the existence of a
money trust is the report specific and
detailed.
1T would, of course, be absurd" said
the report, ''to suggest that control OF
the bulk of the widely distributed wealth
of a great nation can be corralled by
snt 1f Tf that IL .bat ia
meant by gentlemen who deny the ex-
istence of money trust, your commit
tee agrees with them. Such thing
of course would be impossible and its
suggestion is ridiculous. 1t is not, how
ever, necessary that a group of men
shall directly control the small savings
in the banks nor the scattered resources
Of the country in order to monopoliy.
the great financial transactions or to be
able to dictate the credits that shall
be extended or withheld from the more
and conspicuous enterprises.
This is substantially what has been ae
and fairly represents the ex-
sting condition"
The great bank or banker with ae
,ess to the mainsprings of the concen
rated resources of other peoples mon
W" the report declares, can handle the
,ast issues of securities now demanded
" the commercial and industrial devel-
,pment of the country.
But the bank reserve system, it is
urther contended, concentrates large
,art of the funds of the smaller banks
n the only public money market of the
ountry, New York, where group of
men there have strengthened their in
crest in the various banking institu-
ions, the report says.
"If therefore, by money trust is
meant AN established and well-defined
IDENTIFY and community of interest be-
ween a few leaders of finance which
las been created and held together
through stock holdings interlocking d.
ectorates and other forms of DONNA
ion over banks, trust companies, rail
Dads, public service and industrial cor
'orations and which has resulted in
asst and growing concentration of the
ontrol of money and credit in the hands
t comparatively few men your com
nittee, as before stated, has no hesta-
ion in asserting as the result of its in
estigation up to this time that the
thus described exists in this
ountry to-day.
"To say that the domination of this
roup over the money and credit of
he country controlled BY our largest
nancial institutions and that is avail
BILE for financing large security issues |
Or the current needs of our principal |
lter-state corporations and of the in
ividuals conducting great enterprises
nd for stock exchange loans, is at |
asst as effective as for instance, is /
he control of the United States Steel |
over the steel industry, is |
. under statement of the situation, al
Rough the methods by which this con
,ol is effected and held together are
course essentially different and of
more loose and intangible charac
r."
Accepting this as the long sought
money trust" the committee outlined
lie membership as follows:
"The parties to this combination or
or community of interest
= whatever name il may be called.
ay be conveniently classified, for the
irpose of differentiation, into four sep
ate groups.
"The first, which for convenience of
atement we will call the inner group,
insists of J. p. Morgan q company.
e recognized leaders, and George r.
lker and James Stillmsn in their in
vidual capacities and in their joint adj
and control OF the First
ational bank, the National City bank,
e National Bank of Commerce, the
lase National bank, the Guaranty
-ust company and the Bankers Trust
mpany with total known resources.
these corporations alone. in excess of
800 900 900. and OF a number of small
but important financial institutions.
Ms takes no account of the personal !
rtunes of these gentlemen. /,
Closely allied with this inner or pri-
sry group and indeed relating to them
actically as partners in many Of their |
ger financial enterprises, are the pow ,
ful international banking houses OF /
e. Higginson & company, and kidder.
abody & company, with three afiiliat- !
banks in Boston. il
In New York City the international |
hiking house of Messrs. Kuhn. Loeb 4 q
mpany. with its large foreign clientele !
4 connections. whilst only qualifiedly :
led with the inner group, yet through :
close relations with the National CITY
nk and the National Bank Of Com :
rec and other financial institutions, &
"a which Il has recently allied Il G