Evening star., 1932-07-28
Criminal Syndicalism.

Evidence of a radical plot against the
banks OF this country has been dis
covered in Pontiac, Mich, where the
headquarters of a group known to be
hostile to the existing system of gov
ernment in the United States have been
raided, with the seizure of quantity
of letters that disclose a systematic at
tempt to incite runs on banks. The
chief promoter Of this scheme barely
missed arrest and is now being sought.
That many banks have been driven
into difficulties and even into hquida-
tion by the circulation of false reports
OF their weakness Is too evident to be
successfully disputed by those who
deprecate attribution of subversive pur-
poses to the Communists in this coun-
try. There are too many specific in
stances CT runs that have been started
by false rumors and have continued to
the point OF forcing the closing of
doors.
International conditions are adverse,
as they have been during the past two
and half years in this country. The
banks are exposed to the mischievous
enterprise of rumor mongers Some
times they are simply nervous people
who express their fears. Again they
are malicious persons who hope to see
runs started just as some mentally un-
settled folks turn in false fire alarms
to set the engines running.
1t requires no stretch of imagination
to conceive a radical conspiracy to de-
stroy public confidence in the fiscal
institutions and to cause their COL
lapse. That there is closely organized
party Of radicals who seek to under
mine the existing form of government
in this country is well known. Their
purposes are manifested constantly at
meetings addressed by speakers who
plainly urge the overthrow of the Amer
lean system Of administration.
The papers seized in the Pontiac raid
afford evidence that the plot against
the banks was carefully laid and had
been conducted with some degree Of
success. A system of telephone calls to
bank depositors had been established,
names being chosen from telephone d.
rectories, and messages sent to them
warning them of the weakness of GER
tain banks. This was done on the
chance that the false reports would be
spread.
These conspirators against the bank
ing institutions and through them
against the public security have worked
upon the principle that the average
person will spread bad news freely.
Rumors of bank weakness travel with
sometimes disastrous swiftness. In
this city recently such reports raced
through the community with practically
no warrant. though four small institu-
tons were in trouble" owing mainly to
mismanagement. But for speedy action
by the other banks this whispering
campaign" might have led to a grievous
disaster. In one of the Government
offices, 1t is understood. veritable mass
meeting was held, at which speakers
declaimed against the banks in general
and advised all to withdraw their de-
posits forthwith. Fortunately ca1mer
judgment prevailed and this mischiev-
Gus propaganda was of no material
effect. But the danger was there
nevertheless.
In most of the States the laws pro-
vide severe penalties for the incita-
ton of runs on banks through the
spreading of false reports. The hope
Is that those who have been engaged
in this wicked work of instigating panic
will be caught and given the limit Of
punishment.