New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-08-03
Oklahoma Senator Issues Open
Letter DenounCing Danger
GUS Power of Bankers.
STANDS BY FEDERAL BOARD
Iowa Representative Challenges
Secretary of the Treasury's
Charges and Quotes
Bond Figures.
IRON The Tribune Rureaul


conspiracy raised by Secretary McAdoo
against the New York bankers. by issu-
Ing an open letter in reply to criticism
of the federal reserve board feature OF
the pending bill. The Oklahoma Senator
charges that the objection has been raised
by "a very few ambitious gentlemen In
this country who wish to retain In their
own hands the dangerous power they
have acquired to control the finance
commerce and industry Of the United
States.
IF an exhaustive investigation were
made Of the panic Of 1907" the Senator
adds. Ito ascertain who were the bene-
fciaries OF that panic, this country would
learn a much needed lesson in finance as
10 the responsibility for, and the bene-
hciaries of. panics in this country"
The open letter Of Senator owen is de-
voted primarily TO the purpose of re-
assuring country bankers that they will
not lose by the requirement Of deposting
a part of their reserves with the reserve
banks and that they viii benefit by the
privilege of putting out one-fourth OF
their capital on farm loans. He suggests
that further advantages might be given
when the national bank act "is codiied
next winter"
No Reason for Control.
There is no more reason" the Senator
concludes. why the banks should have
control OF the federal reserve system, in
whole or in part, than that they should
do so in the great reserve banks of
France, Germany or Great Britain. No
body has ever had the shamelessness TO
charge the reserve banks of France, Ger
many or Great Britain with being used
for partisan or political purposes. That
suggestion has remained to be prophesied
by a very few ambitious gentlemen in
this country, who wish to retain in their
own hands the dangerous power they
have TO control the finance, commerce
and industry Of the United States. They
wrote asking me. as chairman Of this
committee, this question:
Shall the control and nomination of
the banking business Of the United States
including note issues, bank credits and
the cash reserve of the United States, be
surrendered Internationally TO the hands
of a board Of seven members appointed
by the President?
Surrendered by whom? My answer is
that it must be surrendered by the few
who have gained control of IL, at least to
the extent which is essential for the pro-
lection OF the great mass Of our people
engaged in commerce and industry. At
present this enormous power is measur
ably controlled in the hands Of a half
dozen men. who can shake this country to
its foundation by panics whenever they
please, and they can do IL so artfully and
so subtly as TO make it almost impossible
TO demonstrate their guilty contrivance"
Challenging Secretary McAdoo's bank
conspiracy charges" Representative
Woods. of Iowa, minority member Of
the House Banking and Currency Com
mittee, issued a statement to-day in which
he furnishes figures to show that the
New York banks did not attempt 10 un-
load their per cent bond holdings after
the introduction of the Democratic cur
rency bill.
Mr.. Woods says It appears that the
statement of the Secretary Of the Treas
ury is entirely unwarranted, unless It was
made from a purely political point Of
view.
The Iowa Republican asserts that when
he read the statement of the Secretary
charging that the New York banks were
depressing United States bonds" he wrote
the national banks OF New York City
asking them to list the amount Of bonds
held on the day the currency bill was
introduced June 25) and on the day Of
tho McAdoo interview DULY 29).
II have received answers from prac-
tcally all Of the large national banks, and
many of the smaller ones in New York
City" said Mr.. Woods. 'In fact have
received answers from twenty-seven ma
tonal banks, and among these twenty
seven is one bank that decreased its hold
ings OF bonds about $500 The in
creased holdings of the other national
banks heard from amount TO about $685.
600. making a net increase of approx
rnately $4,000 from June IS TO July 20.
inclusive.
There are some nine or ten OF the
smaller banks of the city that have not
yet heard from. These may have pur-
chased or sold bonds in small amounts.
But tho fact that the holdings of these
bords I'm all the large banks but one were
as much or more on July .. the date of
the McAdoo statement. as they were on
June 20. when the currency bill was in
troduced. Is conclusive evidence there was
no concerted effort on the part of a num-
Der Of New York national banks to de-
press the selling price of those bonds"
Mr. Ragsdale and Mr.. Henry are ex-
pected TO open the fight soon after the
caucus meets, on August II, and they will
put members from agricultural districts
in a hole" by demanding rollcall votes
on their amendments. These amendments
provide for the issuance Of emergency
currency. under certain safeguards.
against warehouse receipts covering cot
ton. wheat and corn. and the farmer
members" of the House are approaching
the issue with no little trepidation.
One MeAdoo Plan Endorsed.
The plan OF the Secretary of the Treas
ury 10 transfer from S25,0OOOOO to $4,000,
900 from the Treasury TO national banks
I'm the West and South to facilitate the
movement of crops has received the in
dorsement Of many banks and bankers.
A New York financier having large in
ierests both in the West and South tele-
graphed Secretary McAdoo:
your department has made master
stroke. IT makes tears of'Joy come to my
eyes in gratitude to our Creator for CIV
ing us such as you TO preserve the honor