The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1915-07-10
fowler VISIONS
|BANkCONSPIRAC
Says Federal Reserve Board
and Money Trust" Are IN
League with Allies.
PAINTS AWFUL PICTURE
Panic Will Result from Big Loans.
.. Asserts Peace Councils
Counsel. .
PAINTS AWFUL PICTURE

Congressman H. Robert Fowler. OF I'LL
nois, general counsel for Labor's National
Peace Council, the organization recently
launched to spread a propaganda against
the exporting of war munitions, yester-
day laid before the Federal Reserve
Board a long document charging that
the neutrality of the United States is
being violated by the issuance of Federal
reserve notes and the making Of loans
by national banks in transactions based
upon the expectation Of munitions.
The document laid before the reserve
board Is largely a TRADE against the firm
Of ]. p Morgan & Co, which, 1t Is
charged. Is responsible for loans by men,
Der banks amounting to 500. 00C. 900 and
the arrangement of $2O.Oo0.OO0 Of redis-
lied governments for war munition pur-
chases.
Sees Extensive Conspiracy.
1t is charged that Through the medium
Of an extensive conspiracy, composed of
certain bankers and officers and direc-
tors Of Federal reserve banks and men,
Der banks embraced in the Federal re-
serve system. acting in conjunction with
officers and agents Of the governments
of Great Britain. France and Russia, the
United States has been involved in very
grave and serious breaches of neutral
ity." The Morgan firm, says Mr.. Fowler.
has agreed with the allied governments
to secure for them in this country credits
amounting to $500. 900. to be secured by
American stocks and bonds held by them.
Representative Fowler paints an awful
picture Of the things that will happen to
the country IL the Federal Reserve Board
permits this conspiracy to continue.
In the first place. he declares. the way
ia being opened for the governments
opposing the allies to present a bill Of
indemnity for 81 O0o, 000. 900 against the
United States at the end of the war. He
predicts. further. that a bank panic will
result Through the actions of the men,
Der banks in becoming waterlogged with
loans made upon an abnormally large
scale to agents Of belligerent govern
ments."
His argument that the government is
responsible directly and indirectly for the
aid given the allies through the transac-
tons referred to Is based upon the propo-
sition that the twelve Federal reserve
banks are government institutions. a
proposition which members Of the Fed
eral Reserve Board regard as a patent
fallacy. Mr.. Fowler's contention that
the government is responsible for the
loans made by national banks on Sc
Morgan firm Is based on complicated
theories Of finance
The larger part of his complaint.
which consists Of twenty-six type
written pages. is given over to q sort
of money trust" speech in which Mr.
Fowler inveighs against the Morgan
firm and banks and corporations sub
ject to its influence for their alleged
in the creation of practi-
cally all Of the trusts which have been
attacked by the government under the
Sherman law. He makes the charge
that the Morgan firm forced the panic
of 1907 "in order to compel the owners
Of the Tennessee Coal and Iron Com
pany to turn their property over to the
steel trust, and arrogantly demanded
of the then administration. as condi-
lions precedent for allaying the panic,
the deposit of all available government
moneys in such banks as members Of
the firm Of ]. P. Morgan & Co.. would
name"
The Peace Council, in whose name
the complaint is submitted. has been
by President Gompers. OF
the American Federation Of Labor, as
an organization representative of or
ganized labor.