The daily sentinel., 1913-08-19
Financial Triumvirate.

VI SOCitty anu suOulu Dc projected
and encouraged to expand his activ-
tiles.
Financial Triumvirate.
Under the existing banking system
money oligarchy has developed in
the great industrial centers of the
country. The hearings before the
Pujo committee demonstrated the ex-
istence of well-organized money
trust. Morgan, Baker and Stillman
three bankers of New York-were
shown to dominate the finances of
this nation. Morgan was hailed as
the uncrowned emperor of the realms
OF Mammon. This condition was
brought about largely by the opera
ton of the national bank act which
concentrated the bank reserves of the
nation in New York where they were
used for stock gambling in Wall
street. When the money kings want
ed to discipline the country they
made money tight and hard times
followed. When they were disposed
to have things boom, they loosened
their purse strings and money was
easy"
Under the Wilson Bryan bill these
potentates are dethroned. The coun-
try is divided into twelve districts,
or regions, and central bank is Or
ganized in each district of which the
banks of that district are stockhol-
ders. These big banks are known
as regional reserve banks and they
care for that portion of the reserves
of the little banks which used to be
sent to New York. Thus, instead of
these reserves becoming concentrated
in Wall street they are kept in the
various regions where they are
available for commercial, industrial
and agricultural purposes.
A Panic Preventer.
The controlling power in the
new system is the federal reserve
board, which as | said before is nam
ed by the president and therefore al
ways answerable to the people. This
board has very extensive powers.
Perhaps the most important is what
might be described as the panic pre-
venter." This is very simple, but
very effective device. The federal
reserve board will have at it disposal
five hundred million dollars in cur
rency. In times of stress when the
regional reserve banks are unable to
take care of the situation, the federal
reserve board will release to the re-
gional reserve banks put up as secur-
ity prime commercial paper to the
full value of the loan, and in addi-
ton one-third the amount of the loan
in lawful money of the United States.
We never had panic in the his
tory of this country which could not
have been squelched at its inception
by the proper distribution of one hun
dred million dollars. Take the hand
made panic of 1907. All the banks
OF the west and south asked at that
time was that the New York banks
pay them what they owed them. But
the New York banks We're frightened
to death and would not release dol
lar
Under the Wilson-Bryan bill We
could not have repetition of that
experience. In the first place the
country banks would not have their
money tied up in New York, and in
addition they could get all the cur
rency they wanted by depositing Sc
curities in Washington with the fed
eral reserve board.
Forbids Cashiers Certificates.
With the overthrow of the money
combine the cashiers certificate
also disappears. You remember
those bits of paper which took the
place OF real money during the panic
of l9072 You will see them no more
for under the Wilson-Bryan bill the
banks must meet their obligations
with coin of the republic or close
their doors.
Another feature of the bill which
will eventually prove one of its most
beneficial provisions is what Is known
as the "redicount section This en-
ables the country banks TO redicount
the paper of farmers and stock rails
ers with the regional banks, and in
the opinion of experts will nave a
strong tendency TO not only make