The Washington herald., 1915-04-18
Politics and the Banks.


politics in it In the first place. every one knows
that the Riggs Bank has been competent and
valuable adjunct of the National City Bank of
New York, over which presdes Mr.. Frank S.
Vanderlip, "a former Republican Assistant Secre-
tary of the Treasury. The National City Bank
has never been in favor with the Democratic ad-
mnistration. In addition to this, Mr.. Charles c.
Glover the president of the Riggs National Bank,
and the man to whom the great success of the
latter institution is dcservcdly accredited a
large contributor to the campaign fund Of the
Republican Congressional Committee last year.
His appears in the published reports of the
! contributors, that there is secret concern
ing his support. He gave ST 1000. There is no
question, therefore, that the administration has
no love for the banks at which the Treasury Of
ficials are striking.
| But the matter has much wider scope than
a contest between local bank and gov
eminent officials. Viewed in this larger aspect it
means that it is in the power OF the administra-
ton to embarrass and annoy any financial inst-
tuition that falls within its displeasure.4 1t has
the machinery and it can employ all the talent
that is necessary. Mr.. BrandeiS comes from Bos-
ton in response urgent telegram; special
counsel are employed; the United States district
attorney appointce OF the administration lends
his aid; and the entire machinery OF the govern
ment and its resources called into action. All
this is done at public expense. No official is
called upon to foot the bill, although the bank
which is attacked is compelled to pay out OF its
own funds the legal expenses incurred With
Congress which is in sympathy with the admins
tration, and which may be relied upon to pigeon
! hole all resolutions OF inquiry, similar rcSolll-
tions have been buried in the past it is not likely
that this expenditure OF public funds will be
4
gress conditions would be vastly changed.
The important question, however, is: What arc
the banks throughout the country going do
about it, And the banks a power. 1t is true
that they have lost much, il all, OF their indie
pcndencc. They arc longer Individual inSttu-
tons. but part OF system which is con-
trollcd by Federal Reserve Board composed OF
seven Democrats, all the appontceS OF the Prcs-
dent. The whole financial system OF the country
is now directly under the direction and super
vision of the government and this, in its last
analy sis, means the President. This j. true,
whether tho President be a Republican or al
Democrat. Any bank which fails to keep in favor
with the administration easily be made sub
ject 10 espionage to USE no stronger word
which might work to its absolute injury Any
flaw in the conduct OF lis affairs matter how
trivial or technical. can be made the occasion OF
serious mistake in the provisions OF the new
currency act. that tremendous power for good
or evil is lodged in the Executive OF the nation
This power can be exercised to destroy any bank
that incurs tho cnmity OF tho powers that be
1t was different years age" Then, in the days |
OF Andrew Jackson, the Democrats fought til
money power typifcd in the Bank OF the |
United States 1t is not necessary here to re- |
hcarse the details OF that memorable contest |
Suffice it TO say that Jackson pointed out the |
dangers that would threaten in the money |!
power was not destroyed. He did not orCSce tho |
day when equally dangerous element, the pOliti-
cal power. might be unduly exercised. Political
power wrongly excrtcd is as bad as money power
corruptly used. The present situation indicates |
that have gone, usual from extreme to |
the other.
The last great fight OF the moncycd interests
in this country in 1896. Perhaps Mr. Bryan
has forgotten the strenuous methods used by the
banks in that memorable year to defeat his cleo
ton to the Presidency and perhaps he has for
given them. Perhaps the other hand, he may
still remember the part they played in bringing
his ambitions naught and he may even view
with certain satisfaction the present attitude of
the administration OF which he forms prominent
part. Everybody remembers how the banks were
reluctant to accommodate those who agreed with
the effort to place this country upon a bimctaliic
basis and helped those whose synpathies were
with the gold standard. Every bank big and lit
lie, center for anti-Bryanisnl. The years
which have gone by have proved that they were
in the right. The country maintained its national
credit upon the gold standard and even Mr..
Bryan has abandoned the ideas for which he so
earnestly contendcd. 1t was the banks and the
business interests which defeated the Democratic
party in 1906. Perhaps the memory of that defeat
yet rankles in the Democratic bosom.
And the Riggs National Bank has laid
its case before the other national banks of the
country and has asked their moral support. 1t
is to be expected, however. that if this support
is given it will be secret than open. 1t
was we'll known to the Republican managers in
the last Congressional campaign that many OF
the officials of banks in the larger cities asked to
be excused from making contributions to the
Republican campaign committee because they
feared to incur the enmity OF the administration
They argued, and with much reason that if they
allied themselves to the opposition they might
expect TO be harasScd with requests for unusual