The Madison journal., 1913-08-16
THE MONEY POWER AGAIN.

/ tariff and banking laws, and the Demo
cratic party was given power with dl-
rect and plain mandate from the people
to effect these reforms.
The Republican high tariff, with its
complete surrender Of governmental func-
tions to certain privileged CLASSES who
were permitted to tax the people for their
private benefit, was, perhaps, more dis
crsscd in the campaign, but the other
great sSuc-.refurm of the currency and
consequence to the nation, for those who
control the money of the country, con-
troll the country.
| The Congress first took up the tarlif
question; the House has passed tarlil
revision bill, materially reducing the
burdens of the people by reduction Of
duties; the measure is now before the
Senate, AMI we small soon see the fulfill
ment OF that part OF the Democratic
pledges OF relief to the people.
But, it seems that the forces OF special
privilege, defeated at the polls, and con-
demned by the American people, propose
to make their last stand in an effort tn
thwart the will Of the people by defeat
ing the banking and currency legislation
proposed 10y the Administration and urged
10y President Wilson in special message
to Congress. And, Enthusiastically, this
insidious power is not making its fight
in the open. Realizing that the same I'M
broken front presented by the Democrats
to all assaults on the pending tariff bill
would, normally, assure the passage OF
the banking and currency legislation pro
posed 10y the President and designed To
curb and regulate the Money Power, that
power is now resorting to underground
methods to pcrpetuate its grasp Oh the
nation.
The Secretary OF the Treasury, Mr..
McAdOo, has this week Issued Il state
ment. elected by existing conditions in
the money market. That able and re-
sponsible official states that the present
low record Of % reached 10y United States
two per cent bonds and the present strn-
gency in the money markets and curtaiI-
ment OF bank credits, are abnormal, ar
tiiicial and not warranted by existing
business conditions.
| Mr.. McAdoo further states that the two
per cents are to-day worth par; that the
country is prosperous and business good;
calls attention to the abundant haryests
OF the year, and charges that the decline
in the two per cents and present curtail-
ments of bank credits are due "almust
wholly to what appears to he Il campaign
wagad with every indication of concerted
action on the part of j number of intu-
ential New York City banks to cause APP
prehension and uneasiness about these
bonds in order to help them in their ef-
forts to defeat the currency bill"
Coming from such Il source, this is
grave and startling statement, out, in
view OF the facts brought ont by the
Pujo committee in its investigation of the
so-called money trust, the country ought
not to be surprised, for that inyestiga-
ton proved, beyond the shadow of Il
doubt, that the money and credits of the
country are controlled 10y Il handful of
men, heads of the great New York City
banks, the same institutions referred to
in the Secretary's statement. Indeed, one
of these money kings admitted the fact
on the witness stand in the course of this
investigation.
Now, these same banks do not want
the proposed currency legislation and the
President and the people do want it. So
they begin to turn the screw and away
oil here i'll Louisiana, and in every ham
let in the land, the pressure is already
being felt. How? Every bank in the
land, outside Of New York, and perhaps
one OF two in Chicago, has to 90, at
| times, tn that great financial center for
money. So, when the individual b rrrou-
er goes to his local country bank for his
usual and legitimate accommodations ne
may find that Inc can't get them. Why?I
lie has the security to offer, and the To-
| cal bank wants his business, hut they. in
turn, are, of course, at times, borrowers,
usually here in Louisiana from New Or
leans banks, who, in their turn, borrow
from the New York institutions.
See, then, how deity but surely the
pressure is exerted through this chain OF
inter-depenlent borrowers by the New
York banks to whom, after all, they
must all appeal. All the New York con
Germs have to do to create AN artificial
money stringcncy, particularly at this
season when large sums are in demand
to move the great crops of the country,
Is to refuse accommodations to the in
ierlor banking centers, like New Orleans,
thereby forcing the latter to curtail cred |
Its to their country customers, and, i'm
medIately, Mr.. Smith, the planter who
needs money to move his crops, or Mr.. |
Jones, the merchant, who seeks accom-
modations in his business, feels the pres
sur,'-feels the pinch OF the iron shoe.
The Secretary's statement, or warning,
Is Timely. Those, if there bc such, Who'll
nave thought that the battle against
special privilege WAS won when Woodrow
wilson took office, are sadly mistaken.