The Washington times., 1924-02-04
BANKER PARLEY
.FATEFULFOR
c. D. P.
concIave Opening Here on
Aiding Northwest to Have
Political Consequences.
By WILLIAM HARD

manufacturers and merchants and
lawyers and other dignitaries from
the great Northwest to try to
puzzle out the problem of how to
save the Northwest from financial
bankruptcy and how at the same
time to save the Republican party
from defeat in the Northwest next
November.
Two things have particularly
grieved and worried the Republi.
can leaders. One has been the oil
scandals. and the other has been
the condition of the Northwest
This gathering here today is an ad-
mission to the effect that the
Farmer.Laborites and other North.
western radicals have not exagger-
ated the adversely prevalent in the
Northwest and that the Admins
tration at last feels the absolute
political necessity of forming a
rescue party to get the Northwest
out of the pit into which 1t has
fallen.
As Important as Oil.
It is believed here that the fate
of the Republican Party next No
vember may hang as much on the
outcome of today's events regard
ing the Northwest as on the out
come of the handling Of the oil
scandals in the courts. President
Coolidge is being earnestly con-
graduated by his friends on taking
the northwestern situation firmly
in hand in spite of all the efforts
leading eastern financial interests to
persuade him that in the Northwest
the part Of wisdom would be to
let nature take its course and that
nothing.
Contrary to this advice, President
Coolidge has now decided that in
the Northwest the right thing to
do is something; and inquiries re-
garding that something are indi-
eating today that it will include a
strong pressure by Governmental
officials upon private bankers to
come forward and do their share
in reviving the fortunes of the
country banks and Of the other
local financial agencies of the
Northwest
Shipstead Takes Laurels.
BY a strange irony it appears that
Senator Henrik Shipstead, senior
Senator from Min
nesota, is today the chief hero in
the saving Of the Northwestern
banking situation. His speech of
last Friday denouncing the. high
rate of interest paid by the Secre
tary of the Treasury on short-term
out the disastrous effect of this high
rate of interest in attracting money
in the Northwest toward investment
in Federal securities instead Of
toward deposit in local banks was
carried to the Treasury Department
several days in advance Of it's deliv-
cry on the floor of the Senate.
Senator Shipstead's charge that
Mr.. Mellon thus was taking money
out of the Northwestern local banks
and pulling it into the United States
Treasury and actually damaging the
Northwestern financial situation at
the very time when it most was in
need of help is now candidly ad-
mitted by the Treasury Department
through it's decision to withdraw all
Treasury savings certificates from.
sale in postoffices in numerous
Western and Northwestern States.
Shipstead Gets Credit.
The credit for this accomplish
ment on behalf of the northwestern
local country banks, which now pre-
sumably will get the local money
formerly going into Mr.. Melons
Treasury savings certificates, is
generally here awarded in full
measure to Senator Shipstead who
thus, as a Farmer-Laborite, gains
his first great legislative success
through taking part in the rescu-
ing Of bankers and in the restora-
tion of financial stability in the
Northwest.
In the meantime, while Senator
Shipstead, Farmer Laborite, has
been laboring to help the banks of
his region. the big bankers of the
Middle West have been holding
back from making any contribution
out of their resources to the sta
bilizing of the northwestern rural
banking financial situation. At
meeting in Chicago a certain con-
siderable number Of them firmly
resolved to keep their resources to
themselves and to let the north.
western country banks sink or
swim by their own local efforts.
The result is political scandal
OF the highest dangerousness.
Ordinary people in numerous West.
ern and Northwestern States are
now by act Of the Treasury De-
partment deprived of their op-
portunity to invest their money in
Treasury savings certificates. They
are forced into depositing their
money in local banks which in
large numbers have been failing.
Meanwhile the big bankers in
adjacent big cities are refusing to
risk their resources in any vigorous
rush to the sustaining of the banks
thus suspected of being about to
perish.
Big Bankers Fear Risk.
The, big bankers, it is argued, are
standing aside while little investors
are being forced into coming for
ward to take the risk involved in
being the rescue party.
In today's gathering It will be
strongly represented to bankers
present that in the rescuing Of the
Northwest it is politically most de.
sirable that there should be some
by the largest big
banking interests throughout the
country. The President does not
believe in governmental action ex.
cept when private action has failed.
What he would like to see would be
vigorous action now by private ii.
nancial interests in the restoring Of
the Northwest to financial security.
He realizes, it is now believed,
be vigorous private action or else