Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-07-04
Why Some Influential Bankers
Fight the New Currency Bill
Secretly, but Bitterly


operations yet greatly has the idea of the
supervision railroads by Government board sitting
Washington grown the popular mind and so GREATLY
HAVE THE RAILROADS PRosPERED UNDER THIS LAW
1897 only changes asked by the people have
been strengthen the law and to enlarge the powers of the
mission chief desire Of the railroads TO GET
UNDER THE PROTECTION OF THE NATIONAL BOARD
escape tyranns and operations Of various State
boards.
The Of the United States will have to accept the
of the currency system because
the power issue s6OOo of emergency notes to prevent
pancs and maintain stable rate Of interest through
out the country too great power to vest in the uncontrolled
discretion of private citizens
PRIVATE credit Is left where 1t belongs under the
system exclusively the Of the PRIVATE banker The
use Of PUBLIC credit reserved the nation The Govern
interfere with any national bank In Its
binary operations any under the system than under
the old not force any bank either to grant to refuse
credit any individual not force bank to discount
single note leaves every banks relations with its GUS
toners unchanged and unaffected
The Government added cognzance only the twelve
Banks but these to be managed by local directors
twothrds Of whom will always be chosen by their stock
hodersth banso that in all ordinary operations the banks
will be closely managed by the bankers without interference
by the Government the railroads managed by rail
road without unwaanted interference by the Government
The greatest opposition to the proposed law will
CHIEFLY FROM THOSE BANKS AND BANKERS THAT
HAVE BEEN MOST ACTIVE IN THE PAST IN CONTROL
ING THE RESERVES OF THE BANKS, THE PROMOTION
AND FLoTATIoN OF NEW TRUSTS OR CORPORATIONS,
AND THE CREDIT OF LARGE BORROWERS.
completely this control has been concentrated in few
private hands years shall show by three highest
expert authoe-hrst by President George Reynolds, of
the Continental Commercial National Bank of Chicago
This bank holding of the deposits Of other banks is the
arges the United States In address before the National
Business Congress Chicago December H. 1911 Mr. Rey
nolds said:
THE MONEY POWER OF THE COUNTRY NOW LIES
IN THE HANDS OF DOZEN MEN. PLEAD GUILTY TO
BEING IN THE LAST ANALYSIS ONE OF THESE MEN.
FOUR OR FIVE BANKERS IN NEW YORK, TWO OR THREE
IN CHICAGO, TWO OR THREE IN ST LOUIS, CAN CON
troll THE QUESTION OF WHETHER LARGE LOANS
SHALL BE MADE TO BANKING CoRRESP oNDENTS
THROUGHOUT THE COUNTRY"
The late j. p Morgan and his intimate banker
cae George Baker of the First National tesyng before
Puo Committee last winter admitted almost great
centraon Of that described by Mr. Reynolds
But both vehementy denied the existence of Money Trust
because they said substance these of other
concentrated in such vast heaps under the control
of Morgan Mr. Baker and their associates only because the
of the money trusted these bankers in their integrity
and prudence and FOUND BY EXPERIENCE THAT THE
MONEY WAS USED PRoFITABLY TO ITS OWNERS The
other banks could withdraw the funds at will There no
agreement compuon and therefore Money Trust
Everything entirely voluntary legal regular.
Mr. admitted that the concentration of capital had
gone pretty farprobaby enough and that in the hands
of bad would be extremely dangerous But he added
effect that only great and good men could retain the conf
dence of bankers such degree be inrusted with such
power by other bankers voluntarily
Without concentrations of both credit and capital the
vast underwriting and the extraordinary overcaptazaon
of many which the country has witnessed would be i'm
possible.
Undoubtedly these eminent bankers who have been and still
are in control credit handled all the money nusted
to them PRUDENTLY AND PRoFITABLY FOR THE OWN
Frs OF THE MONEY But how have operations aft eced
Che pU5hc interest?
Ii the coffee valorizaion scheme in the manipulation of
the roads the making of the Steel Corporation the small
deposits millions of Americans through the banks used
by of Credit to create overcapazed companies
to distribute watered stock the public and prices of
necessaries of life to
The peoples money has thus been used against themselves
by very trustees whom the public and private credit
temporarily intrusted.