Daily capital journal. (Salem, Oregon) 1903-1919, 1915-06-03
"PLUGGED PIPE LINE"


following interesting comment upon the Riggs bank
In spite of President Wilson's refusal to read politi
cal issue into the Riggs bank case the issue distinctly
political.
The Riggs bank which has long maintained close rela
tons with the National City Bank of New York. and
formerly maintained close relations with the United
States treasury asserted that the secretary of the treas
uy and the comptroller of the currency had been acuated
by malice and vndicvenesS in their regulation of the
banks methods Of doing business
The National City Bank has long been the financial
leader Of the anti-adminStratiOn forces in Wall Street
When the Riggs bank began its proceeding against Mr.
McAdOO and Mr. Williams the head of the National City
Bank sent letters to every national bank in the country
urging support. cean-cut issue was drawn between
the Wilson administration and the banking methods
which the Riggs bank eXemped and the National City
Bank champiOned.
In spite of the refusal of the president to find political
significance in this proceeding, it loaded with political
dynamite. Ii it had been proved that the presidents
secretary OF the treasury and the presidents comptroller
OF the currency had been acuaed by personal malice and
personal vindctveneSS in dealing with powerful but
politically hostile aggregation of banking capital the con-
sequences would have been serious indeed to the admin
StratlOn Its good faith would have been mpeached its
financial policies discredited and the country would have
reached the reluctant conclusion that the great authority
OF the treasury was used an instrument of financial
persecution against bankers hostile in politics to the parv
in power
What has happened, however, is quite the reverse The
court holds tha the good faith Of Mr. McAdoo and the
further that the bank perssenty violated the law long
before Mr. Williams was comptroller and these violations
continue to the present day" The only question that re-
mains at issue is whether the comptroller had the tech
meal power under the statute to impose fine for these
particular violations of the law If he had so chosen he
had full legal power to close the bank and ask for thp
appointment of receiver The opinion of the court as
to Riggs banking methods shows that such drastic action
might easily have been justified in law if not in eX
pediency.
Inc one great fact that stands out in these proceedings
Is that the United States government under the Wilson
administration is not in partnership with Wall Street.
lmance and that the pipe line that used to run into the
United States treasury is plugged That is condition of
affairs that ought to be no less gratifying to honest hank
ers than to all other honest citizens
War news yesterday was unusually fatal Turks 1ost
I0OOOO German trenches full of dead and wounded tens
OF thousands OF Russians officially reported killed bv Ger
mans ana 26SO00 taken prisoners Italian and Austrian
armies grpped in bloody embrace The newspapers With
Their war reports are supplying so much blood and
thunder that the small need not longer spend his nannioo
buying literature of the "Dead-Eye Dick" variety Tbo
tamy newspaper ought to give him all the necessary
lS ana ne doesn't nave to read it on the sly in order to
escape lecture from the stern parent w
/
AL jennings famous as train-lobber and politician
not that these vocations similar in all reSpectshas
turned evangelist He gives promise of being Blv SIN
days first real rival in ability to secure plenty Of adver
tsng without paying for it, and if Billy knows inst how
TO put them over the plate and reduce the devils batno
average away below the major league standard All viii
ooaoy oe aDe to get the drop the old boy and make
him stand and deliver the goods ~ '''" '''''>'
Mount Lassen has been quiet for two days probabvh
trying to be neutral '' ''''''S