Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-01-08
Leslie M. Shaw Tells Why 1t Is
Favored by Certain Banks.
CONTROL IN WALL STREET
Former Secretary Before House
Banking and Currency Committee.
REFERS TO CENTRAL RESERVE
Says It Is Likely to Bring Ruin to
Every One Unless It Is Under
Proper Control.

What most of the big banks want is
the Aldrich plan. which fastens Wall
street control upon the country for fifty
years." declared former Secretary of the
Treasury Leslie NJ. Shaw today before
the subcommittee of the House banking
and currency committee. which has UNI
dertaken to draft a currency system
scheme.
1T is true said Mr.. Shaw, that the
author of the plan claims TO have de-
vised a scheme by which the financial
control of the country can be wrested
from Wall street.
''IIe and all Of those associated with
him in his so-called educational cam
paign conceded that this control now
exists. The fact of control being admit
ted. l am a little surprised that all the
banks owned by the Standard Oil people
and all the banks owned or controlled by
the Standard Oil and United States Steel
people and the entire group and all
groups. whom the author OF the bill adj
mits now dominate our financial affairs,
should unite In support of the measure, if.
as it's author claims, it is going to take
that control away
Fears for Its Success.
THE central reserve association, if we
have one." continued Mr.. Shaw. will be
controlled by the brains which today
dominate the institutions which are TO be
associated, and this is the way it ought to
be. If We are to have such an institution
shall regret exceedingly If the United
States Steel people and the Standard Oil
people fail to control it. ! am not worry
ing lest they fail. The plan makes theii
control absolute.
And ii would be calamity If men OF
less caliber should get control. Unless
the most experienced and strongest imam
cial men Of the country control this in
Stitution more potential than anything
ever before conceived by man. it will re-
suit in widespread ruin. l am not certain
that even these experienced men who to-
day dominate our industrial. commercial
and financial affairs will be able to man
age it safely, even for themselves. We
must bear in mind that some Of the
strongest Of this group are getting old.
Perhaps others will arise equally poten-
tial, but their heads do not appear above
the horizon.
IF the Central Reserve Association
gets into weak hands it will not only
ruin those in control, but every one
else"
Must Have Supplementary Currency.
Mr.. Shaw told the committee the cur
rency of the United States was suffi-
cient for ordinary times, bu> that the
country must have a supplementary
currency in the same form as money
issued under ordinary conditions. other
wise bankers would have to explain to
their customers, This is what the gov
eminent gives us to use when We
are up against it"
The difficulty, he continued. would he
encountered in bringing about contrac-
ton when the supplementary currency
had served its purpose.
Questions asked by the democratic
members of the committee seem to in
dictate that the majority favors the es-
tablishment of a system Of divisional re-
serve banks, operated under close gov
eminent supervision, as a substitute for
the national monetary commissions pro-
posed central bank.