The Birmingham age-herald., 1913-01-17
Jacob H. Schiff Testifies
Before Money Trust
Committee
TO TAKE TESTIMONY
OF w. ROCKEFELLER
Committee Adjourns Until Next
Wednesday When Witnesses Rep
resenting Banks and Banking
Houses Will Be Heard

Washington. January 16.-Liberty CT in
dividuals to concentrate money and power
to the limit of their ability was advo-
Gated today before the House money trust
committee by Jacob II. Schiff, of the
New York banking firm of Kuhn, Loeb q
Co.
Mr.. Schiff declared that individuals
should be allowed to exert their utmost
efforts to concentrate fortunes and power.
until the laws of nature caused the
attempted monopoly to fall of its own
weight He was opposed, however, to
concentration through corporations and
holding companies. Mr. Schiff could not
say whether concentration had as yet
reached a point where it is dangerous.
The New York banking financier fol-
lowed George NJ. Reynolds of Chicago on
the stand. Mr.. Reynolds told the COM
mittee that he had studied the concentra-
lion of money and credit, and that he
believed, at the point it had now reached,
it was q menace to the progress of the
country He said that competition in
banking should be revived.
Others to Be Heard
The committee adjourned after todays
session until next Wednesday when III.
j. Dawson, F. L. Hine, George f. Baker,
Jr., and other witnesses representing
banks and banking houses in New York
and Chicago, will be heard. The commit
tee expects to conclude its public hear
ings next Friday and to begin Immediate
ly the writing of its report. When the
committee reconvenes, plans for taking
of the testimony of William Rockefeller
will be made.
In the course of Mr.. Schiff examina-
tion today he voiced the view that depos-
itors in banks were sufficiently pro-
tected under the present law ''if adopted
and kept up to the teachings of expert
ence." He said that he could see no OBJ
lection to one banking Institution selling
securities to another bank which 1t owned.
Prudence, he said, would prevent the
Officers of a bank from accepting TOO
much of a doubtful security. He thought
this matter could be safely left 10 the
self respecting men,, the board Of
directors. and that no further law was
necessary.
Then you think the less law the better
for banks and trust companies?" asked
Mr. Untermyer.
Yes asserted Mr.. Schiff Too much
law can crush the life out of bank
Few Men in Control
Mr.. Schff said that he had observed
concentration of the control of money and
credit into the hands of a few corpora
tions during the last few years and that
the control of these corporations had
been centralized in the hands of a few
men.
Has this been a subject of concern
to you?' asked Mr.. Untermyer.
mo, it has not"
Would that be a subject of concern
TO you If it continued to draft until all
control was in the same hands2'
Il can't answer that question: said
Mr.. Schiff.
Have you considered the possible eff
feet of this concentration on your own
credit?"
II do not require credit Mr.. Schiff
replied.
Mr.. schiff said that he believed it would
be better IL clearing houses were in
corporated.
DO you see any objection to enforcing
the publication of bank assets?' asked
Mr.. Untermyer.
The more publicity we can have about
banks the better" said Mr. Schiff.
Mr.. Schif further said he would not
approve of one bank owning another
Opposed to Holding Companies
''As a rule he said, II am opposed to
all holding companies"
Because they lead to concentration
which, under our law and under our con-
oitions. should not be allowed" was Mr..
Schff's reply.
The witness declared that he did -,ot
object to the concentration in the hands
OF individuals, but he did not object 10
corporation concentration.
II believe in individual freedom he
said. II believe the Individual should be
allowed to do his best. II he goes too
far the laws of nature would interfere.
The first great attempt at monopoly was
at the time of the Tower OF Babel
That fell of its own weight Every in,lf
vidual monopoly will DO the same when
II reaches that point The laws of ma
ture take care Of that and no law of man
is required
But have you ever thought what would
happen while this monopoly was grow
ing and when 1t fell of its own weight?''
mo. have never thought of ti,at.''
said Mr.. Schiff.