FINANCE HISTORY

Wanganui Chronicle, Volume LXXXIII, Issue 19868, 16 June 1927, Page 6

FINANCE HISTORY

Sir, —Your correspondent "Interested” questions the assertion in my previous letters; that the great U.S.A. Government were brought to heel by the Associated Banks of America. Many of your readers, no doubt, will remember when President Roosevelt waged war against the power of the trusts and secured verdicts against the Standard Oil Trust amounting to 29,000,000 dollars. Immediately, the three powerful financial kings, Rockefeller, Morgan and Armour, representing respectively the Standard Oil Trust banks, the Steel Trust banks, and the Beef Trust banks, entered into a triple alliance. This alliance of offence immediately made its financial power felt. They dominated, by a majority, the Clearing House Associations of all the largest cities. On October 20, 1907, ail those banks which would not fall into line were expelled; three days was all that was necessary for every bank which had refused to capitulate and, after making ample apology, they were re-admit-ted to membership. At a certain date and hour, the Associated Baziks from the Atlantic to the Pacific refused to pay out in gold, but, instead sprung a surprise to tho nation by the suddenness of their preparation and attack in paying out with paper currency of their own creation, known as “clearing house certificates” with several denominations down to two dollars. On October 25, 1907, Pierpont Morgan proclaimed to all the world the Banking Association’s ultimatum:—• “We will continue to trade in paper currency and pay no more gold until we get from President Roosevelt the necessary guarantee against adverse legislation. The people can take paper money or leave it—they will get nothing else. The mills, mines and other industries controlled by ourselves or allied interests will slacken down or close until we get effective guarantees against anti-trust prosecutions.”

The banks now had the United States by the throat. They refused to pay out gold, but demanded and enforced payment in gold. Banking facilities were withheld from those who could not comply and thousands were ruined. This method brought every ounce of gold in the U.S.A, into the vaults of the banks. The Contemporary Review of January, 1908, wrote:—“lt was a time of exceptional prosperity.” Lord Welby, of the British Treasury, stated: “The stock of gold in the United States is enormous.” When the banks went on strike in .1907, the prosperity of the country had. never been equalled in its history, yet the gold claims of tho Bank Trust brought about a terrible depression, and industrial collapse, unemployment became rife, thousands were ruined. The United States Attorney-General denounced the Banking Trusts as follows: “Pirates, whose operations are worse than those of the notorious Tweed gang.” The position, .financially, became so acute that the anti-trust journals sent out “5.0.5.” appeals to President Roosevelt to submit to Pierpont Morgan’s terms.

I would advise “Interested” to refer to the files of the leading newspapers of that time, The London Standard of December 7, 1907, reported: — “Mr Pierpont Morgan is in virtual control. He has made it too strenuous, even for Mr Roosevelt. Mr Roosevelt sent an invitation to Mr Morgan to come to White House and discuss the situation. Mr Morgan consented to go only when Mr Roosevelt sent him a personal letter promising a different attitude towards financial interests in the future.” Mr Roosevelt humbly apologised and bowed the knee to Mammon’s representative. The main points of Morgan's terms were:— Firstly, that the President was to drop his anti-trust campaign; secondly, that no effort was to be made to collect the Standard Oil fines; thirdly, that no further action bo taken against trusts or combines controlled by Morgan, Rockefeller and Armour; fourthly, all portions of the Sherman Anti-Trust Act be suspended; fifthly, that gold previously paid into the Federal Treasury for bonds be left on deposit in tho private banks.

The New York Herald of November 25, 1907, wrote: —“Roosevelt bas received his lesson. We shall hear no more of his attacks on the trusts.” The London Daily News of December 16, 1907, said:—“The trust magnates hardly seem to have moved a finger, yet they have made their power felt throughout the civilised world. They have made no sacrifice, but on tho contrary, will emerge wealthier men tlih-n before. They have brought the most powerful Government in the world to its knees; they have forced it to suspend certain laws and made it promise to interfere with them no

more. ” Your correspondent in Tuesday’s issue, S. J. Dark, takes to task tho American people concerning the arbitary position of the U.S.A, attitude towards Britain and the war debts. Your correspondent’s remark that “America has the monopoly of gold,” is hardly correct. The American people have not the gold; it belongs to a very few, a mere handful, that can so use its powers that even the Government *of this great Republic, as well as Britain and other nations, have to use their fleets and armies when called upon. As a nation, we console ourselves with the idea that we are democratic. What a fallacy when the very life blood of our community, its currency and credit, are monopolised by a * power that is stronger, more cruel, more callous, more soulless, than any modern monarch who has ever wielded power! Until such times as the people will bestir themselves, democratise their own credit, then, until such times, tho shackles of economic slavery will only grow stronger and stronger, which eventually will cause a terrible upheaval and revolution against the powers that be. To keep the world safe for democracy is first to democratise its life blood —currency and credit. PERAMBULATOR. June 15.