n
The Commoner
5
NOVEMBER U. 1804
tion. That this hank had made extension of loans
bo as to bring as large a portion of tho people as
possible under Its power, and Influence, was a fact
pointed out In this address; and it was also said
that "it has been disclosed that some of the largest
loans wore granted on very unusual terms to the
conductors of tho public press."
According to Jackson: "Having taken these
preliminary steps to obtain control over public
opinion, the bank came into congress and asked
a new charter. The object avowed by many of
the advocates of the bank was to put the president
to the test, that tho country might know his final
determination relative to the bank prior to tho
ensuing election. Many documents and articles
were printed and circulated at tho expense of the
bank to bring the people to a favorable decision
upon its pretensions. Those whom tho bank ap
pears to have made Its debtors for tho special oc
casion were warned of tho ruin which awaited
them should tho president toe sustained, and at
tempts were made to alarm the whole people by
painting the depression in the price of property
and produce and the general loss, inconvenience,
and distress which it was represented would im
mediately follow the re-election of the president
in opposition to the bank."
Jackson added: "He (the president) met tho
challenge and willingly took' the position into
which his adversaries sought to force him and
frankly declared his unalterable opposition to tho
bank as being both unconstitutional and inex
pedient." The methods referred to in this address by
President Jackson are the methods that are re
sorted to by the representatives of special Inter
ests whenever an appeal for relief is made by the
people. Enormous literary bureaus are constructed
for the purpose of influencing public sentiment,
newspapers are brought under the control of these
interests, debtors are warned of the ruin which
awaits them should any 'plan intended to protect
public interests be carried out; and in various
ways, In this day. as in Jackson's time, attempts
are made to alarm the whole people by painting
the depression In the price of property and produce
and tho general loss, inconvenience and distress
which it is represented would immediately follow
any executive act or legislative act to which tho
representatives of these special interests do not
heartily subscribe.
In one of his messages Jackson said -that he
had "unquestionable proof that the bank of tho
United States was converted into a permanent
electioneering engine;' and he referred to the
efforts of the bank to control public opinion
through the distress of some and the fear of others.
The special interescs of today have "a per
manent electioneering engine."
In his farewell address, Jackson warned the
American people against the money trust. Ho
reminded them that it would require "steady and
perservering exertions" on their part to check the
spirit of. monopoly; he warned them that "so many
interests are united to resist all reform on this
subject, that you must not hope the conflict will be
a short one nor success easy." He congratulated
himself that Ills humble efforts had not been
spared "to restore the constitutional currency of
gold and silver;" he told tho people that in spite
of all that had been done "enough yet remains to
require all your energy and perseverance;" and
he assured the people that "the power, however,
is in your hands and the remedy must and. will
bo applied" if you determine upon it."
The evils against which Jaclcson struggled are
more pronounced in this day than they were in
Jackson's time; and today, as In the days of Jack
son, the. power is in the people's hands and- the
remedy, will.be applied, only when they, determine
upon it -.,'"
Are We Drifting Towards a United States Bank?
Speaking before tho Maryland Bankers asso
ciation recently. John M. Nelson, a Baltimore
banker, discussed at some longth the growth of
banking concentration. Mr. Nelson took tho five
great banks in Now York, tho National City and
the Hanover, representing the Rockefeller-Standard
Oil group and the Bank of Commerco, the First
National and the Chase National representing (ho
Morgan-InBiirance Company group, and showed
that tho combined deposits In these banks amount
to $623,000,000, and the combined loans and dis
counts to $430,000,000, or 57 per cont of all the
deposits In tho national banks of New York and
53 per cent of all their loans and discounts.
Mr. Nelson said that the great danger of this
concentration Is that It gives power to a few men
to control tho money and stock markets. Then
ho pointed out that thero was a strong tempta
tion for those in control to unload the securities
In which they are interested upon the banks, tho
trust companies and tho Insurance companies allied
with this banking concentration.
Mr. Nelson said that this concentration sug
gests tho question: "Are we gravitating to a bank
of the United States?"
Tho Wall Street Journal comments upon Mr.
Nelson's statements in such an Interesting way
that it may be well to quote liberally from the
Journal's article.
The Journal says: "So important is it that
every phase of this subject should be discussed,
that It is well to consider for a moment tho sig
nificance of this inquiry. We think that the reply
can best be made by approaching the subject from
the standpoint of the tendency of concentration in
general. The banking concentration does not dlffor
essentially in principle from the, industrial con
centration or that of tho railroads. The main
difference lies in the fact that it is more dangerous
than tho other, in as much as any concentration of
banking will put the power of tho money market
in the hands of a few men, and these few men,
by reason of their control of credits, which are
the vital air of commerce, will thus control prac
tically the business of the enUre country.
"Now there can bo no doubt, looking at con
centration in general, that it points absolutely In
one direction. There Is some basis of truth in
the statement made not long ago by an Intelligent
socialist that Mr. Rockefeller and Mr. Morgan wero
"the advance agents of socialism," although they
did not know It themselves. What he meant was
that in forming the great railroad and industrial
combinations and in facilitating the concentration
of capital, these men were breaking down the
"competitive system," were building up a monopo
listic system, and that when competition is de
stroyed the next step is socialism. In other words,
when combinations becomes so great and the con
centration so powerful that they control the busi
ness of the country, then the people he said will
step in and take up these combinations, turn them
oyer to the government and inaugurate an era of
state socialism.
"Now a bank of the United States would be in
lino with such an evolution as this. A great cen
tral bank of the" United States would be a form of
socialism. In banking ic would be the same thing
as government ownership of railroads would be
in that line of enterprise. Now, we do not believe
that the growth of concentration, whether in bank
ing or in industries, need necessarily lead to so
cialism. On the contrary, we still believe that it
is possible for these great business organizations
which, whatever may be their evils in other re
spects, at least have the advantage of increasing
economic, efficiency, can be so regulated and. kept
within -proper bounds by governmental supervision
as to save the country from tho oxtreme of so
cialism on ouo side, nnd tho evils of government
ownership on tho other. But if those in control
of tho great combinations of capital, whether in
industry or in banking, psrabit in unduly extend
ing the era of concentration, and at tho same time
resist tho demand for publicity, squaro dealing
and reasonable government regulation, then thoy
may bring on the very calamity which, of nil
others, would destroy tho social order. Wo are
astounded that so many of our great leaders in
the flnnnclal world, men who display such wonder
ful sagacity and foresight In other things, do not
realizo tho plain logic of the sltuntion growiug out
of theso conditions. As to a central government
bank, thero has for many years existed a strong
public prejudice against such an Institution, ad
vantageous, as In some respects, it might be. But
the people might welcome it If the other alterna
tive wero a private aud Irresponsible monopoly
of credits."
The Proof at Hand
The Philadelphia North American says: "Tho
cost of the neccsHaric3 and many of the luxuries
of life is lower than it ever was. This cannot bo
successfully disputed." But It can, and the proof
is right hand. Look at yoilr grocery, mat and
coal bills. Look at your rent receipts. Look at
.your rondy-mado clothing bills. The North
American must think its rcadors a precious lot o
ignoramuses if it expects them to accept as trutk
such statements as tho one quoted above. w
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