The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1913-02-28
FINANCIER'S NOTE IS
TOO LATE FOR USE
Report of Investigators Is
Completed and Will Be
Submitted to House To-
day-Seven Democrats In
dorse Findings, but -Four
Republicans Differ on
Some Minor Points In
volved in the Suggestions


mittee on the concentration of money
and credits in the United States
formally was agreed upon tonight at an
executive session of the committee. The
report will be submitted to the house
late tomorrow. The seven democrats
will sign the report and the four re-
publicans will submit brief minority
views on several points involved.
The fun committee. with Counsel
Samuel Untermyer concluded its work
inal as framed by Mr.. Untermyer was
amended in several particulars. and the
final draft was the result of numerous
compromises and concessions.
The report deals with the question Of
regulation Of stock exchanges and
clearing houses. and recommends
reyision Of the laws relating to ma
anal banks Two bills embracing the
remedial legislation recommended by
the committee, will accompany the re-
port.
House OF MORGAN DENIES
A general denial of the existence or
possibility of a money trust" was
presented the committee today in a
long letter sent by J. P. Morgan & Co.
at the invitation Of the committee
Upon the receipt of the Morgan let
ter. Chairman Pujo gave out letter
written by Morgan & Co. saying that
the invitation TO the firm had been ex-
tended January 27. and that the COM
mittee had been at work on its report
for a month
Your memorandum" the reply con-
be of value"
The Morgan letter laid at the door
of the present banking and currency
laws the responsibility for any con
centration" of money and credit that
may exist
IN its conclusions as to the commit.
tees activities the Morgan firm says
PUBLIC BEST SAFEGUARD
We venture to submit that in
strong public opinion there lies the
greatest Safeguard of the community.
The public are the ones who intrust
bankers with such influence and power
as they today have in every civilized
land. and the public is unlikely to
intrust that power to weak or evil
hands
Your counsel asked witnesses
whether the present power held by
bankers in this country would not be
q menace if it lay in evil hands. If
congress were to fall into evil hands
the results might be deplorable But
to US it seems as little likely that the
citizens of this country will fill con-
gress with rascaIs as 1t is that they
will entrust the leadership of their
business and financial affairs to a set
of cieve~ fogues."
The lStter adds that such concentra-
tion of money in New York as has oc-
CURED is due to the "antiquated bank
ing system" and the natural law which
'in every country creates some one
city as the great financial center"
ATTACK GENERAL BELIEF
That part of the money trust resolu-
tion declaring that it is generally
believed" that groups of financiers
create. avert and compose panics was
particularly attacked. Morgan & Co.
set forth that any Withholding of
money or credit by one man in any
market would be promptly relieved by
the automatic flow of credit from some
altogether foreign source"
we regret" said the communication,
that a belief so incredible. so abhor-
rent and so harmful to the country
should for a moment have found lodg-
ment anywhere. And we welcome your
Invitation as an opportunity for us to
state, to the extent of our observa-
tions and experience. there is not even
a vestige of truth in the idea that in
whole or in part the financial convul-
sion of 1907 was brought on through
the design of any man or men,
The letter further pointed out that
the individuals TO whom is attributed
the power to create panics" were the
ones to suffer more by the severe
shrinkage in values Of securities dur
ing the 1907 panic.
TO support the contention that
control of money and credits existed
Morgan & Co. said the committee lwas
considered tables of so called inter-