New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-02-28

security values. such losses-as the pup-
lie records will in many cases snow :. q.
ming into many millions OF d2ll a motive
impossible therefore, TO imagine a iIv I'D
on the part OF such persons as "ouiu 'e
to campaign of elf-destructlon'
Who the Heaviest Losers were
Furthermore, our observation was .l'ae
| such individuals and corporations as W.
fortunate enough. when the panic "hs
raging and when security prices were AZ
| their lowest. to hold any cohsiuei az ~
amount OF liquid resources. lnVariapi! u.
voted such resources 10 the ala oi s',
weaker members of the cofil, ,,,,irc ,heir
| funds into low priced securities for '"e
| purposes of profit. A.,
Ii has often been observed that M,
Morgan aided actively and effectivel! III
! the efforts TO Compose" the panic OF lsV ..
| Such aid as he was able to render 10 tIe
situation in New York at that time was
! due We believe. simply 10 ms ariily III
securing the prompt cooperation Oh ilihi,?
| divergent minds which represented slIpiis;;
| Independent banks. The same kihd VI
service always is TO be commanded IN this
countrI's emergencies. ...>
II we have dwelt with more circum-
| etance than perhaps your Judgment ap-
proves upon these features OF the pre-
amblc IL is because We believe that t1e
| whole framework and language OF 'he
| Congressional resolution under when you
are acting implies conception hhpoSSs,,-
| ble i'm sound theory and wholly impossipie
| Tn practice: sucn theory being that a
comparatively small group OF men, chieliE
centred In New noik ivy, "a" n. The
| obtain such complete iiia a'ns'o =, % a.
nhanciai nlhciinSi! y, ,V' 49,, ,owar In
| cause this whole country incalcuiaDle as
| tress: or. as the resolution puts II: have
| welded power over the business. com
merce credits and finances OF the couhtiy
that Is despotc ana perlious anu ~ uai' i
| becoming more perilous To the pubic WEI
| fare
EaIIacjous Statistics Presented.
....,, a., ,r,,os.
tor the naih'.hanSe "a hare be@n
| slple economic theoiH Ga horatn
! spfehu nelorc NVuI N,t'' a,rnc,orate,
tables OF so-called interlocklng d,rec'9rseeS
from when eNceeutsi! ,nas.
ences nave DteH puo,iCi' u'a u. - ,rd
tables ~ ~ SHOWN thal ~ o'' t,., 80 ~
1 bank directors serve upon tht po", We g. ~
corporations having resources aGstes" ,t ~,
S23,OOo.o0V.oVo, ana IL Is II.p'leu VIC, T.;
vast aggregate OF me couii,' : "'"''' -
III the disposal OF these lSo men
But such an implication rests soIely
! unon the uptena able theory that these
- i;,,;,a IN d;Hsrsnt narts of the
"e"' "'u"s " .nn.IIv IN .
country, w "s"J Se'S' ps -,
acquaintec win eson o."er' "u
most cases associated only IN occa-
! xionaI transactions, vote always tor
~. s,ms poIicias and control with
united purpose the directories OF the
Jap CORPORATIONS on which they serve.
Thc testimony failed 10 establish any
concerted policy or harmony of action
binding these 10 men together, and az II
matter OF fact 10 sucn p4incF 800 - COW NJ
a srI haco ~ '' NOR appaTent when one
considers that on the average these ~
rectors represent only one-quaIter Ol the
memberships OF their hoafuS' ~ ~ pITpya
ferrous 10 suppose that every Iht"rIoch-
, ganization with which he Is cohhectcu,
and that the majority OF directors "ho
are not 'interlocking are mere nSuIe
head. subject 10 the VIII ot d sinah MI
nority Of their boards.
Perhaps the greatest harm IN thc pres
entation referred To lay in the iurther
unwarranted inference. To Whicn mas h''li
given wide publicity that Inc vast sum oi
s25,~."p.o" was IN cash OF lqulu 'UI H.
subject to the selfish use or abuse or indl-
vidusls- Such an idea eNcites the puoh'
mind to demand the correction OF ran
cied situation when does ho' anu ]" o"'
belief. never can exist
In Ike manner an eno"aNot mas o''h
tiStics which alone can tell the story. but
rather th!oukt u's''' ra,,iIas g. v,n.
.alntd III ,i'e s.ap -" ~, VII 10 Tar
li,t,.ai ~ H.. c.u,.r,- lon
outN'Ilppins Wv .,,,r'os
coH'pdi "''N' ""''N''-
Precisely the contrary IS the case
The REPORTS Of the Controller OF the
Currency show not only that there has
49, M .uoh tsndanev here. but that
w N w.. nronort;on
'or so"e .1ae' ,t.I 80
OF the country oanS'ns oHpN"' ""'
resources has been declining.
The banking resources of rorty-one 90
Other states have increased since 1870
more rapidly than they have in New York
State; and whereas Ia 1900 New YORK City
banks represented ~ per c.hl 81 .ne
Danhins Ie ~Tn,nd ov ~ t ~ NJ yison
sta,onnn, INC renresent only IS9 per
cent OF such resources.
This striking tendency toward great
eli and greater diffusion OF American
banking is iu 1san urine ,aIg D! ,he Iac
;,'1Noraan, havLS in ~. "ountrv has
according 70 the best reports obtainable.
Increased from 1898 TO %. 100. o. by more
than 40 per cent. while the population in
creased by less than 20 per cent IN the
same period. mere IS coinpie,e evldenre
~ d,r.i T. Vnr' @ ~ bari,,n~ ,aci;,Ias
Wv
incomplete and Misleading Figures.
Other evidence was adduced before
your committee from which the inference
was sought to be drawn that during the
autumn. when interest rates on cali
loans in New York are likely 10 be- high.
interior banks were in the habit OF with
holding money from their local custom
ers. who needed il for agricultural and
mercantile operations. and OF sending IL
to New York 10 be loaned against Stock
Exchange collateral. The evidence on
ing.
No at..un& ,.,L...v.. ,,,. I. 4.