The daily banner. (Cambridge, Md.) 1897-2008, 1913-02-28
MORGAN DENIES
HAND IN PANIC
Tells House PrOberS There is
No Money Trust
BLAMES CURRENCY LAW
Declare Concentration OF Money Ii
Due to Antquated System and De-
tends Bank Mergers.

OGCldTG SOItSSIht CsiS'' ~
Due to Anticipated System and De-
tends Bank Mergers.
Washington, Feb. 2S.-A general de-
NAL of the existence or possibility OF
a money trust" was presented TO the
house money trust committee III
long letter from ]. P. Morgan & 20"
at the invitation of the committee.
Upon the receipt of the Morgan let
ter Chairman Pujo gave out a letter
written to Morgan & Co., saying tnal
the invitation to Morgan & co. 1ao
been extended Jan. 81 and that the
committee had been at work on us
report for a month. Your memoran'
dunn" the reply closed, "manifestly
comes too late to be of value"
The Morgan letter laid at the door
of the present banking and currency
laws the responsibility for any con
centration" of money and credit that
may exist.
In Its conclusions as to the COMMIT
tees activities, the letter said:
1--WE venture to submit the consld'
Grafton that in a strong public opln'
ion, such as evists in this country,
there lies the greatest safeguard Of
the community-always assuming that
congress will evolve basis system OF
banking which Is scientific and SOUND
as at the present time ours admit
tedly is not The public, that is, the
depositors, are the ones who entrust
bankers with such influence and power
as they today have in every civilized
land, and the house is unlikely to en-
trust that power to weak or evil
hands.
"Your counsel asks more than one
witness whether the present power
held by bankers in this country would
not be menace If it lay In evil hands
Such inquiry answers itself. All pow
er, physical, intellectual, financial or
political, is dangerous in evil hands
eff congress were to fall into evil
hands the results might be deplorable
But to us it seems as little likely that
the citizens of this country will fill
congress with rascals as it is that they
will entrust the leadership Of their
business and financial affairs to a set
Of clever rogues."
The letter says that such concentra'
ton of money in New York as has oc
Cured is due to the "antiquated bank
ing system" and the natural law
which sin every country creates some
IA fbn ornot financial
ter"
That part of the money trust resolu
ton declaring that it is generally be-
lieved" that groups of financiers
create, avert and compose panics,'
was particularly attacked by the let
ter. Morgan & Co. set forth that any
Withholding of money or credit by one
man in any market would be prompt
ly relieved by the automatic flow OF
credits from some altogether foreign
source"
1--WE regret" said the letter, "that a
belief so incredible, so abhorrent and
so harmful to the country could for q
moment have found lodgment any
where. Aid we welcome your invita-
ton as an opportunity for us to state
that, to the extent of our observations
and experience, there is not even a
vestige of truth in the idea that In
whole or in part the financial convul-
sion of 1907 was brought on through
the design of any man or men,"
The letter further pointed out that
the individuals "to whom is attribute ed
the power to create panics' were the
ones to suffer most by the severe
shrinkage in values of securities dur
ing the 1907 panic.
To support the contention that e
control of money and credits exists:
the letter said, the committee has con
sidered tables of "so-called interlock
ing directorates from which exceed
ingly mistaken differences have been
publicly drawn" The letter said that
these directors represent only one
quarter of the boards upon which they
serve.
ut is preposterous to suppose" said
the letter, that every interlocking
director has full control in every or.
ganization with which he is connect
ed"
perhaps the greatest HARM" the
letter continued, ''in the presentation
referred to lay in the further unwar
ranted inference, to which has been
given wide publicity, that the vast
sum of $25,OOO,0OO,OOO was in cash OF
liquid form, subject to the selfish use
or abuse of individuals. Such an idea
excites the public mind to demand the
correction of fancied situation
which in nur mind does not and can