The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-07-10
BANKS IN A PLOT TO
AID ALLIES CHARGED
Federal Reserve system Ac-
cused by Attorney for La
boris Peace Council.
MORGAN FIRM Is BLAMED

WAsHrNGroN. July a.-Ex-Represen-
tative r. Robert Fowler OF Illinois.
general counsel for Labor's National
Peace Council. the organization recently
launched TO spread propaganda
against the exporting of war munitions,
laid before the Federal Reserve Board
to-day n long document charging that
the neutrality OF the United States is
being violated by the issuance OF Fed
eral reserve notes and the making OF
loans by national banks in transactions
based on the expectation of munitions.
The document filed with the reserve
board is largely Il blast against the firm
OF !. J.. Morgan 4 Co.. which. 1t Is
charged. is responsible for loans by
member banks amounting to 5000 ,0oO.-
600, and for the arrangement or $2O,-
I 600, 900 of rediscounts on securities Of
fered by the allied Governments for wal
munitions purchases.
1t Is charged that Through the
medium of an extensive conspiracy, COM
posed OF certain bankers and officers
and directors of Federal reserve banks
and member banks embraced In the Fed
eral reserve system. acting In c%onjunc-
tlOn with OIHCeTS anu dGents VI 'hS
Governments of Great Britain, France
and Russia. the United States has been
involved in very great and serious
breaches uf neutrality"
The Morgan ti.s;,. says Mr.. Fowler,
has agreed with the allied governments
to secure for them in this country
credits amounting to $500. 000, 600 TO be
secured by American stocks and bonds
held by them.
Mr.. Fowler paints a dismal picture OF
the things that will happen to the coun-
try IL the Federal Reserve Board per-
mits this conspiracy" to continue.
The larger part OF MIR. Fowler's com
plant, which consists of twenty-six type
written pages. is given over to "A sort
of money trust speech. in which he
inveighs against the Morgan firm and
banks and corporations subject to its
influence for their alleged responsibility
in the creation of virtually all the
trusts which have been attacked by the
Government under the Sherman law.
He charges that the Morgan firm
forced the panic OF 1907 lin order to
compel the owners Of the Tennessee
Coal and Iron Company to turn their
property over to the steel trust. and
arrogantly demanded of the Republican
Administration as precedent to al
laying the panic the deposit of all
available Government moneys in such
banks as members OF the firm OF J. T.
Morgan a. Co. would name"
Thu document prepared by Mr.. Fowler
Is regarded as "A texture OF absurdities
and few persons expect it will receive
serious consideration at the hands OF
the Federal Reserve Board.
The Peace Council. in whose name the
complaint is submitted. has been re-
nudiated by President Gompefs OF the
American Federation of Labor. AS the
activities Of this council increase Gu.
: riosity in Washington as to its hacker.
and purposes is becoming more intense.
1t was noted tonight. for instance
that Hermann J. Schulteis was witt
Representative Fowler. assisting in the
distribution of the complaint which the
council has filed with the Federal Re
serve Board. Henry n. Martin OF thi.
I civ has also been observed taking ar
? active interest in the affairs OF the Peace
Council
Mr.. Schulteis and Mr.. Martin were th'
. prime movers in Washington of an or
sanization known rs the Anti-Trus
League, which is or was warmly sup
I ported by David Lamar, the Wolf o
Wall Street" who was convicted no
r long ago Of having lmpersonated ex
Representative. now Justice A. Mitchell
0 Palmer.
G Lamar is now out on bail pending a
appeal from his conviction and sentence