The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1913-03-06
This is Conclusion of
Congressional Com
mittee.
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CONTROLS CREDIT
Bills introduced to Make
Banks Independent and to
End Stock Gambling.

w u6utlk tUlt.D. - nat IL ilOJtl
trust does exist and that its powers
should be curbed by stringent federal
regulations us to the conduct of ma
tional banks, clearing houses, and
stock exchanges. were the findings of
the House money trust committee
set forth In the majority report of
its Investigations filed in the House
late today.
The report signed by Chairman
Pujo and the six other democratic
members of the subcommittee which
conducted the money trust probe, is
a voluminous document accompan-
led by two lengthy bills, one to reg
ulate stock exchanges through for
bidding the mails to exchanges which
do not comply with federal regula-
tions. and the other to regulate clear
ing house associations through for
bidding NATIONAL banks to join such
associations unless federal 'regula-
lions are observed. In the latter bill,
proposed as an amendment to the ma
ti0nal banking act,- the conduct of
national bank officers and directors
Is closely restricted. III.
Written by Untermyer.
The report rs submitted to the
House is largely the work OF Samuel
Untermyer, counsel for the commit
tee, who composed the original draft
OF the report and who drew the bills
presented. On the question Of the ex-
istence of a money trust, the report
is specific and detailed.
1T would of course be absurd"
said the report. ito suggest that con-
troll of the bulk of the widely dis
tributed wealth of a great nation
can be corralled by any set of men.
II that:fs what is meant by gentle
men who deny the existence of a
o trust, committee agrees
with them. SlcA Il thing, aocf course
would be ,imposshijHitbes and sifs .stlggses-
ton is ridicufbus. HIS not, however,
necessary that a group OF meii shall
directly coneT6ls the small savfngs-in
the banks o the scattered resources
Of the countNAn order 70 mon9polize
the greet NEUTRALITY-SUSPICIOUS. or 70
be alberto direct the credits that
shall ha@.extended- or withheld from
the more important. and conspicuous
busineigs te83terprtsesssa This isssubstahl
TALLY NshE has Been acconiplislIed
and fairN EEh h seStatins'
What Reserve System Does.
TheX9rHat u bank or baikerit"with
accessX Nntthe ts~Mainspringsd of the
conce1& f$teh tres6urces ofoothets peo-
pies hShey,,sff the report declares,
can handle TIE vast issues OF securi-
ties now demanded by the CONNER
cial and industrial development of
the country. ! But the bank reserve
system. it is further commended, con-
centrates Il large part of the funds
of the smaller banks in the only pub
lie money market of the country, New
York, where a group of men there
have strengthened their interests in
the various banking institutions, the
report said.
IF, therefore, by ii money trust
is meant AN established and we'll de-
fined identity and community of in
terest between a few leaders OF fin
ance which has been created and held
together through stoc%kholdings, in
t%erlocking ~directorates and other
forms of domination over banks,
trust companies, railroads. public
service and industrial corporations,
and which have resulted in a vast
and growing concentration Of the
control OF money and credit in the
hands OF u comparatively few men,
your committee, as before stated, has
no hesitation In asserting as the re-
suit of it's investigation up to this
time that the condition thus describ-
ed exists In this country today.
AS Effective AS Steel Trust
To say that the domination of
this group over the money and credit
OF the country controlled by our larg-
est financial institutions and that is
available for financing large secur-
1ty ISSUES for the current needs of u
principal interstate corporations and
of the individuals conducting great
enterprises and for stock exchange
loans, is at least as effective as for
instance, is the control of the United
States Steel Corporation over the
steel industry. is an under-statement
of the situation, although the meth
DDS by which this control is effected
and held together are of course es-
sentially different and of a more
loose and intangible character"
Accepting this as the long sought
money trust" the committee out
lined the membership as follows:
THE parties to this combination
or understanding or community of
interest by whatever name it may be
called. may be conveniently classified
for the purpose of differentiation.
into Tour separate groups.
Morgan al the Head.
"The first, which for convenience.
Of statement we will call the inner
group, consists of j.. P. Morgan G.
Company. the recognized leaders,
and George Fisher and James Still
man in their individual capacities and
In their joint administration and con
troll of the First National bank. the
National City bank, the National
Bank of Commerce, the Chase Nat
iOnal bank, the Guaranty Trust com
pany and the Bankers Trust COM
;pany with total known resources, in
these corporations alone. in excess
" 81. 300, 000, 1000, and of a number
~ smaller but important financial
l-AfA.,kSorr The fal,ne .-.