Smyrna times., 1933-06-07
WALL STREET
BANKERS WAR
w. w. AIdrich, the "Man of
the Hour, Defies House
of Morgan
PRIVATE INVESTMENTS

A new man OF the nOur mas
arisen to challenge the supremacy
of the great house of Morgan, long
king pin of the country's banking
system and nearby observers are
predicting the greatest struggle of
money titans in the history of
American finance before the smoke
of battle has cleared away. A
flight to a finish" is the foreword.
The author of the startling def is
winthrop w. Aldrich. chairman of
the governing board of the biggest
individual bank in the world, the
Chase National, and a front rank
captain of the Rockefeller indus
trial-financial dynasty, generally
acknowledge as the only worthy
competitors of the Morgans on this
side of the Atlantic. The challenge
was couched in the form of a pro-
gram designed to purge the CONNER
cial banking business of the taint
of speculative leadership, aiming at
the complete separation of deposit
banking and investment banking
even to the extent of forbidding pri-
yate bankers to take deposits or to
be directors of banks of deposit.
Aimed at Morgan.
1t did not take a second glance
for Wall Street to recognize the
Aldrich program which was promul-
gated directly in the wake Of some
of the most sensational exposures
of the states investigation into
banking practices here as a blow
aimed directly at the position Of
J. p. Morgan & Co., the members
of which are directors Of some Of
the largest commercial banks of the
city and who hold important for
eign and domestic deposits.
Three measures for curbing the
power of the large private invest
ment banking firms were proposed
by Aldrich. ]. BY depriving private
investment banking firms Of the
right to accept deposits, make it
necessary for the private banks to
obtain credit from the commercial
banks In financing their security
fotations. 2. BY doing away with
the security affiliates of the com
mercial banks, the proposed regula-
tions would take away from the pri-
yate banks outlets for the syndi-
eating Of their securities which in
the past have been of such tremen-
dous Importance. 8. BY removing
all private bankers from their posi-
lions as directors Of the CONNER
cial banks the changes would great
ly reduce the prestige, influence. and
AInside information" available to the
partners Of investment houses at
present.
Well informed students Of the sit
uation say that legislation applying
these innovations TO Morgan & Co.
and similar private bankers would
Virtually strip them Of the control
they have so long welded over the
commercial banking system.
]. p. Morgan & Co. does not ac-
cept individual deposits but special
izes rather in big corporation ac-
counts for foreign governments. At
one time it is reputed to have held
as much as a billion of United States
Steel corporation money. Other So
called Morgan banks, like the Guar
anty Trust company, Bankers Trust
company, and the First National al
80 attract big deposits and WELD
tremendous power in the financial
world.
Obviously the Morgan crowd"
viii not lack ammunition for any
defense 1t may be called upon to
make of its politics, at least none
that money can command.
Backed by Rockefeller.
Nor will its opponents 60 into
the fray-if one there is to be-
shabbily equipped. IN its last an
nual statement, the Chase National
bank reported resources totaling
I,S56, 100000 as of December 81
last, with deposits to the amount Of
s1,4e6, 100000.
In addition to these mighty re-
sources Of the bank itself must be
reckoned the vast wealth Of the
Rockefellers, including their hold
fngs In the great Standard Oil con-
Germs.
Wall Street gossip has it that the
Rockefellers have been girding "for
eventualities," such es that envi-
stoned in the present situation for
the last two years. They have been
liquidating doubtful assets and con-
yerting the proceeds into good hard
cash or government bonds.
On the other hand the value Of
the so-called Morgan stocks" have
been melting down steadily in the
long receding sweep Of the share
market for the last two and one
half years.
Winthrop Aldrich was born in the
purple of Americas plutocracy. His
father was the late Nelson w. AID
rich, senator from Rhode Island
from 1881 to 1911 and popularity