The Irish standard., 1915-07-24
BANKS IN PLOT TO AID ALLIES
CHARGED.
Federal Reserve System Accused by
Attorney for Labor's Peace Council
Morgan Firm ls Blamed.

Washington, D. C.-Ex-Representa
tive H. Robert Fowler of Illinois, gen.
eral counsel for Labor's National
Peace Council, the organization re-
Gently launched to spread propaganda
against the exporting of war NUM-
tions, laid before the Federal Reserve
Board today long document charging
that the neutrality of the United
States is being violated by the issu-
ance of Federal 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 blast against the
firm of ]. P. Morgan & Co., which, it
is charged, is responsible for loans by
member bank amounting to $200,000,-
900, and for the arrangement of $780,
100000 of rediscounts on securities Of
fered by the allied Governments for
war munitions purchases.
1t is charged that through the me-
dunn of an extensive conspiracy, COM
posed of certain bankers and officers
and directors of Federal reserve banks
and member banks embraced in the
Federal reserve system, acting in con-
junction with officers and agents of
the Governments of Great Britain,
Tror nd o6
has been involved in very great and
serious breaches of neutrality"
$5oo,ooo,ooo in Credits.
The Morgan firm, says Mr.. Fowler,
has agreed with the allied govern
ments to secure for them in this coun-
try credits amounting to s500,000,000
to be secured by American stocks and
bonds held by them.
Mr.. Fowler paints dismal picture
of the things that will happen to the
country if the Federal Reserve Board
permits this conspiracy" to con-
tinue.
In the first place, he declares, the
way is being opened for the Govern
ments opposing the Allies to present
a bill of indemnity for $1,000, 100000
against the United States at the end
of the war.
He predicts further that a bank pan
ic will result through the actions of
the member banks in becoming water
logged with loans made upon an alb
normally large scale to agents of bel
ligerent Governments"
His argument that the Government
is responsible, directly and indirectly,
for the aid given the Allies through
the transactions referred to is based
upon the assumption that the twelve
Federal reserve banks are Govern
ment institutions, proposition which
members of the Federal Reserve
Board regard as absurd.
The larger part Of Mr.. Fowler's
complaint, which consists of twenty
six typewriter pages, is given over to
a sort of money trust" speech, in
which he inveighs against the Morgan
firm and banks and corporations sub
ject to its influence for their alleged
responsibility in the creation of vir-
tually all the trusts which have been
attacked by the Government under the
Sherman law.
Blame for Panic Of 1907.
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 Republi-
can Administration as precedent to al
laying the panic the deposit of all
Government moneys in such banks as
members of the firm of P. ]. Morgan
& Co. would name."