The Washington herald., 1921-04-21
NO BANK NKCOMBINE
TO DEFLATE LABOR,
SAYS c. h. SABIN
Guaranty Trust President
Answers w. ]. Lauck
EmphaticaIly. &
CHARGE HELD FALSE
Financier, in CIear-Cut State
ment, Absolutely Denies
Anti-Labor Trust.

NEW YORK, April ao.-charIes
II. Sabin. president Of the Guaranty
Trust Company. in response To .
question as TO a statement made
before the United States Labor
Board by W. Jett Lauck. economic,
for the Unions, said:
so far as the Guaranty Trust
Company is concerned. the State
ment reported to have been made
by w. Jett Lauck in Chicago before
the Railroad Labor Board in regard
to the alleged combination Of New
York banks to debate labor. is abso-
luely and unqualifedly false in
every respect. This company has
never been a party. either formally
or informally. TO any such UNDER
standing. agreement or combination
and. furthermore. neither I nor any
OF my aSfociates ever heard OF such
an aIIeesd combination or any dis
custom or proposition relating 90
ii. Mr.. Lauck's statement that New
York banks have combined to cause
the spread Of unemployment is also
utterly false
Not Society STRIKE.
AS to the specious reasoning
that the industrial paralysis "
capital on strike against socie1y.'
any observer Of the general eco
nomic situation must be aware that
! the existing industrial depression
in the United States is due to post
war. worldwide conditions. and
that IL capital went on a strike
against society q would he striking
against itself and suffer quite as
much as society. Capital. which IS
composed n the savings Of al
! classes would have far more to lose
than labor in making labor come
to its knees And labor. on the
other hand, has much to lose In
needing such economic fsIlacies and
absurdities as those advanced in
the statement referred 20.
The popular recourse Of the
demaEoCue and the sgitator in at
tempting TO plead his cause is al
most invariably 10 attempt 20 set
up = mythical Wall Street oppo.i-
tiCn. and this seems 70 be Just
another instance Of that kind or
utterly unwarrsnted appeal to non
ular prejudice and Ignorance
The alleged statement is not only
untrue. but most unfair. No inSti-
tutions or organizations in the
country have struggled harder
against difficulties 20 preserve the
financial, industrial and commercial
stability Of the country through this
period Of world d-wide reaction and
economic readjUstment than the
banking institutions Of New York
in their individual capacities.
Praises Federal Re.erve,
II is largely through their efforts.
with the cooperation Of the Fed
ersl Reserve System that this coun-
try has been able TO pass through
this necessarily painful period with
such a relatively small amount OF
suffering by either business or
labor. The burden Of the situation
has, as a matter OF fact. fallen far
more heavily upon capital than upon
labor. The values Of securities and
commodities have been debated far
more than wages in the general eco
nomic reaction Of the world from
inflated war conditions.
Even = most casual survey Of the
facts would show that the banks OF
the country have extended their
credit resources 20 the utmost limit
of safety in financing industry and
commerce. sustaining business and
the employment Of labor as far as
lay within their power
so far as our own company is
concerned. IL IL has any opinions or
policies to suggest on the labor
question they will be expressed By
this institution individually and
emily on its own responsibility"