The Pensacola journal., 1913-01-17
LET INDIVIDUALS
DO AS THEY WISH
Says the Laws of Nature
Have Caused Attempted
Monopoly to Fail of It's
Own Consent = Another
Banker Says It Is a Poten-
tial Menace to Country.
81 AssocTEp PRESS.


Washington, Jan. 1.-THE liberty of
individuals to concentrate money and
power to the limit Of their ability, was
advocated today before the house
money trust committee by Jacob H.
SchiH, the New York capitalist
Sehin declared the laws of nature
had caused an attempted monopoly to
fan Of its own weight" He believed
that the less banking legislation the
better.
Schin, OF Kuhn, Loeb & Co. de-
scribed the method of issuing secure
ties for corporations as practiced by
his house. He said after his firm had
agreed to issue the securities, syndf-
Gates were formed to underwrite the
risk assumed by the bond house.
The object of the syndicate is, 70
take over the securities II you fail to
saTl them r. asked Mr.. Untermeyer
Yes, that's It." said Mr.. Schiff.
Banks and trust companies. he said.
were the participants in these under
writing syndicates.
Mr.. Schin said about rs to 125 con-
Germs were on q list OF participants
from time TO time invited to take part
IA underwriting syndicates.
What Is the ethics Of the banking
business In connection with bond is
sues7" asked Mr.. Untermeyer.
sIt Is not considered good FORM"
said Mr.. Schiff "to create undue inter-
ferencs q eonHetition By q 6aHKlng
Arm" he added that big banking
houses generally had corporations as
their clients and that no other bond
house would endeavor to take issues
from the banking firm, recognized as
the usual fiscal agent OF the corpora
ton.
MENACE TO THE COUNTRY.
That the present concentration OF
money and credit Is potential "men-
ace to the country" was asserted by
George NJ. Reynolds, president of the
Continental and Commercial Bank OF
Chicago President Reynolds said he
knew Of the trend toward 'concentra-
tion Of money and credits and that
ne thought It a dangerous thing.
II am opposed to the concentration
Of any sort of power he said, 81 be-
iieve that concentration to the point
It has already gone is a menace In
saying that, I do not wish to sit in
Judgment on the men who hold that
power"
Mr.. Reynolds said that he was op-
posed to the principal OF interlocking
directors in potentially competing con-
Germs and that he had adhered to that
principle throughout his banking ca
reer.
Mr.. Reynolds could not make any
specific recommendation as to rene
dying the concentration of money and
credit. but was sure that prevention
Of interlocking directors in competing
concerns would have good effect In
conclusion Mr. Reynolds said he be-
lieved that competition was not
dead" but he believed banking would
be improved by a return to competi-
tive conditions.
Mr., Reynolds said he would approve
Of law giving minority stockholders
in national banks the right Of repre-
sentation on the board Of directors
and would approve a law Incorporating
clearing houses so long as 1t did not
interfere with the free conduct OF
business
II am IN favor of utmost regulation
aud publicity" he said.
The Continental and Commercial
Mr.. Reynolds said, loaned money to
its owns directors and corporations with
which they were connected, but did
not loan to it's own oficers." He did
not believe the officers should be al
lowed to borrow from their own banks
Mr. Reynolds declared that the Chi
cago clearing house was the first to
employ a bank examiner.
was that because you found the
Continued on Page Three)