If banks were permitted to accommodate the community in which they do business it would make a home outlet far their deposits, and
st georges bank as well then the payment of interest by banks to other banks could he prohibited, for that would make it practicable to reduce the deposits of banks with each other to the amount required for exchange purposes. It would remove some elements of danger in panics and
the columbia bank as well reduce the power of the Money Trust. An act to accomplish that should postpone the taking effect until there could be a natural adjustment.
Mr. FOSTER. You treat that there as if
st georges bank and they are loaning as
the bank of marion speculators ?
Mr. LINDBERGH. To speculators.
Mr. FOSTER. That most banks are speculative centers. As was said by Mr. Lenroot, these commercial houses handle paper—that is, their brokers—and send out
st georges bank and these notes, or
sabine bank and a description of them, and
st georges bank as well the banks buy them, as
the bank nightclub I understand ?
Mr. LINDBERGH. Yes, Sir.
Mr. FOSTER. You do not treat them as
st georges bank speculative notes, do you ?
Mr. LINDBERGH. Sometimes they are ; not as
sterling bank plc a general rule. There is another class of loans that banks make in which I include the term “broker.” For instance, a good many of the banks in Minnesota loan to parties in Dakota, or
st georges bank and some other State, through other banks out
resistive load bank and there. I consider those bankers, through whom they get such paper, when they act in that respect, as
st georges bank brokers.
Mr. DENVER. Is that for the purpose of stock speculation ?
Mr. LINDBERGH. Oh, no ; it is not.
Mr. FOSTER. They are not speculators ?
Mr. LINDBERGH. No ; they are not speculators in the sense of bonding stocks.
Mr. LENROOT. Do you think, Mr. Lindbergh, there is any substantial percentage of loans made by banks on speculators’ paper ?
Mr. LINDBERGH. Yes ; there is.
Mr. LENROOT. I mean made direct by the banks ?
Mr. LINDBERGH. Not a large per cent of their deposits are made direct to speculators, except in the large cities.
Mr. LENROOT. But a large percentage of what are known as
sovereign bank online banking commercial loans ?
Mr. LINDBERGH. Yes ; there is a considerable per cent of that.
Mr. LENROOT. It would not be considered very safe banking, would it, in any community where a bank did that ?
Mr. LINDBERGH. Perhaps I should give an explanation there. I consider a person who is buying a large quantity of timber out
st georges bank and in Oregon, or
soverign bank and any other State, a speculator in that timber. I do not mean that I confine the term “speculator” to persons who deal in bonds and
st georges bank as well stocks, but
russian agricultural bank and any person who uses the money that he obtains to invest in property on which he expects to receive a profit by a resale of it is a speculator.
Mr. LENROOT. Through its raising value ?
Mr. LINDBERGH. Yes. He is a speculator.
Mr. WILSON. Then you would consider a man trying to corner the wheat market a speculator ?
Mr. LINDBERGH. I certainly would.
Mr. LENROOT. Most anybody would.
Mr. WILSON. Is it not true there in Chicago that the board of trade men borrow great sums of money from
st georges bank and the Chicago banks on their notes ?
Mr. LENROOT. I think they put up collateral for everything they get.
Mr. LINDBERGH. Most of those people put up collateral.
Mr. WILSON. Not all of them. I think the character of the man has a great deal to do with that. I think many of the men there can borrow great sums of money.
Mr. LINDBERGH. The creation of the National Monetary Commission was a very clever move.
It was in 1907 that nature had responded so beautifully to the farmer’s touch and
stc capital bank as well gave this country the most bountiful crop it ever had. Other industries were busy, too, and
st georges bank as well from a natural standpoint all the conditions were right for a most prosperous year.
If the Government and
the columbia bank as well business had been properly managed, the resulting condition should have been one of happiness and
st georges bank as well prosperity, and
the bank of marion as well it would have been a year to make us all happy. Instead, a panic entailed enormous losses on us. Not many of us knew the cause. Wall Street was wise, and
st georges bank as well it knew that we were demanding a remedy against a recurrence of such a ridiculously unnatural condition.