The evening world. [volume] (New York, N.Y.) 1887-1931, 1913-07-30
Old Bonds Severed by Wilson
Administration and Treasury
Run for People Nnow.
BOND DROP REASON.
Statement Stands That Prices
Of u. S. Securities Were
Deliberately Depressed.
~ SAMUEL M. WILLIAMS.
(OeoG OesssepsaAsas q ne 1vsaaAg
voTA.N


charge made BY Secretary Of the Treas
ury NoAAuo that United States . per
cent bonds we're being depressed by
banks there comes . dehaits parting
a the ways between the Treasury and
tho New York banks. For half . CEN
tuy the influence Of banks has been
strongly dominant In financial opera
tloos Of the Treasury. Particularly In
more recent y@rs the group Of New
Ysrk banks has been . sort Of power
esAind the throne In Government imam
slal operations.
Il was shown In the bond issues Of the
Cleveland Administration. when formal
eeatracss we're entered into between the
Treasury and the Aorgsn-Bslmont syn.
Aicats to maintain the sold reserve. II
,wss shown later when the National City
Bank maintained both public and secret
rslations with the Treasury. Secretaries
ana Assistant Secretaries Of Treasury
shaped their courses % that after their
term Of public duty ended they could
stsp into high salarisd positions - the
hanks.
TN6AsURv 10 NOW Nun ron THE
GOVERNMENT, NOT DANke.
Dat since March last. when the
whoa Administration came into power.
xAere has teen an exactly oppostts line
~ poiscy FOR the TrsAsury. Secretary
IoeAdoo and his assistant. John ekel.
~ Williams. have ~ out 70 run the
Stsaswsy Tor he Government and not
~ the baAka
1Asy Aavs upsst hong praeticss. dis
0isBea certain employees and ~
ostioas rather than By words have
Ovsa che bantsrs 10 understand that
~ = Q Government Treasury. not .
o0akse6 protective institution. 70 b
AroWa uDon - help out privats sDsc-
ulaeioas AaA peivats proAtA
/1oP the past two months there has
eoop . steadily inersasing strain In the
soSatioAs BETWEEN the banks and the
TteaSury. One after another the
1ssAsssy began clipping on psrqui.
Gloes - eaforeinS 10 the striet letter
q Ne NV regulations governing IMAM
e1al operations. The anger Of the
eanAing group began rising. and finally
g would appear ~ though retaliation
had bssa decided upon 70 chew the
TREASURY hat the money power was
H. 0troagss.
!. .1hs psiee Of Government per cent.
Sea1s. % vhieh national bank cur
seasy 10 essed, began to fall In the
go massst. u went below par and
hsDe % fallinS. Do very few Of these
bonls ere belt, enteiaa national banks
thAe u woald sem incfedibls that the
1D11vidual pebble holders should want
- uAleaA all at the sams time.
9Asrsatea osoFstary AcAdo Issued
~ dishonest q yesterday that the o.
s1lne Was due almost Wholly 70 what
soOeass 70 - . camcaign wassd with
svosv indicaxion Of concerted action on
Yeek CITY Sa1ks 20 cause apprshsnsiou
- unsasinsss about chess bonds Ia
Nsg1sr - As,p them In their efforts 70 d.
yaat che currency Gill;"
40 NgcoNos OF sGcRET ogAls
~ WALL STREET.
H. NcAdoo was asked to-day by Thl
1vsaing World for further details OF
watch he based his statement and th,
names Of hanks involved. He replied:
Il cave nothing 70 add or to subtract
e the present time from my ststsmen
q yesterday"
In the Senate to-day. Mr.. Lewis o
Ininois. introduced hamboyant resoiu
ton aimed at the alleged banking con
spiracy and authorizing the Secretary 4
w3ehdraw deposits or revoke charter
This 10 DIT Of gallery play a. such a
sxtrsms course 10 impracticabis and un
desirable. The resolution will bs pigeon
Aolsd.
Aktsntou wss called to-day to tn
tase that Secretary McAdoo did no
spscl6caliy charge that . conspirac,
existed among the banks but that Their
appearsd to oe campaign waSed Wit
every indication on concerted action.
TAs manipuiations and movements O
New York bankers lie underneath
desD sub-strata OF htdden and tndiret
tn0uencss. There are no records. n
Ausha1i letters Of the secret details l
Well street. The pubic sees only tn
surface results. But the Treasury be
ways and means Of ascsrtaining fact
4 bland confidence psrvadsd tts nal
te-1ay and from top to bottom a
soauts stand pat silence was mair
tai0sd on the MoAdoo statement.