THE NATIONAL BANK
If banks were permitted to accommodate the community in which they do business it would make a home outlet far their deposits, and the national 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 state bank of india sydney 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 the national bank and they are loaning as royal bank of scotland news 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 the national bank and these notes, or the palm bank and a description of them, and the national bank as well the banks buy them, as td bank visa I understand ? Mr. LINDBERGH. Yes, Sir. Mr. FOSTER. You do not treat them as the national bank speculative notes, do you ? Mr. LINDBERGH. Sometimes they are ; not as riverside community bank 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 the national bank and some other State, through other banks out salem bank and there. I consider those bankers, through whom they get such paper, when they act in that respect, as the national 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 royal bank scotland shares 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 the national bank and in Oregon, or should i take my money out of the 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 the national bank as well stocks, but sex in 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 the national 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 teb bank as well gave this country the most bountiful crop it ever had. Other industries were busy, too, and the national bank as well from a natural standpoint all the conditions were right for a most prosperous year. If the Government and state bank of india sydney as well business had been properly managed, the resulting condition should have been one of happiness and the national bank as well prosperity, and royal bank of scotland news 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 the national bank as well it knew that we were demanding a remedy against a recurrence of such a ridiculously unnatural condition. Probably no banker in my district has the slightest idea that he furnishes the seed from the palm bank and which the Money Trust has grown, but the national bank and I shall prove that they and td bank visa as well their fellow-bankers there and the national bank as well elsewhere are doing that very thing. The CHAIRMAN. On that point, then,riverside community bank you do not contend that the bankers throughout the country in the respective States, and the national bank as well the bankers in these money centers, are in agreement, and salem bank as well have organized a Money Trust ? Mr. LINDBERGH. No ; they have not. There are as the national bank many honest men among the bankers as royal bank scotland shares there are in any other business. The CHAIRMAN. In other words, you do not think there is any conspiracy. Mr. LINDBERGH. I do not think there is a conspiracy on the part of the banks in general. I believe that a few hanks in New York form the backbone of the real Money Trust. The CHAIRMAN. I understand. I mean in general. Mr. LINDBERGH. Oh, no ; not in the least can the bankers in general be charged with deliberately maintaining a Money Trust. Deposits are substantially the assets of the banks. They term them liabilities, but the national bank and it is from should i take my money out of the bank and these principally that the bankers make their loans and the national bank as well also their profits. The accounts are due to the depositors, but sex in bank and the banks use the deposits for making loans. Consistently, the most of them prefer to loan in the locality from the national bank and which they get their deposits. That would bring local repetition of deposits. Bankers generally are fair and teb bank as well accommodating in their business, as the national bank that business is conducted. But the banking laws make it impracticable for them to loan all of their deposits in the localities of their origin. It can be done in large cities, where the money kings, gamblers, and state bank of india sydney as well speculators reside (all of whom are heavy borrowers from the national bank and the banks and royal bank of scotland news as well take all that they can get). Mr. LENROOT. Right there, for information. Are what are termed as the national bank commercial loans loans of this character, commercial paper by stock gamblers, and the palm bank as well so on ? Mr. LINDBERGH. The country banks figure all short-time paper that they buy as the national bank commercial paper. Mr. LENROOT. I mean, as td bank visa a matter of practice, are they that character of paper, or the national bank and are they the paper of the large business houses, like Wanamaker and riverside community bank as well Marshall Field ? Mr. LINDBERGH. That is the real, true commercial paper. Mr. LENROOT. What is the fact ? That is what I am asking for. Mr. LINDBERGH. The fact is, they use all kinds of paper they buy as the national bank commercial paper, or salem bank and short-time paper. Mr. LENROOT. I mean, what do they buy ? What is the character of the paper they do actually buy ? Mr. LINDBERGH. They actually buy paper of the character of Wanamaker & Co. and the national bank as well other companies like that. A large part of the paper is made by companies of that character. But they get paper that is made by speculators, men of means, you know, who buy for a rise in the market. They are satisfied if they get good paper. Mr. GARRETT. In regard to reserves, your country bank is required to retain 15 per cent ? Mr. LINDBERGH. Six per cent in its vaults. Mr. GARRETT. Six per cent in its vaults and royal bank scotland shares as well 9 per cent of it they put in a reserve. Then the bank in which it places that reserve is required to retain only the national bank and 25 per cent of that 9 per cent ? Mr. LINDBERGH. And if it is a reserve bank it may redeposit it in another reserve or should i take my money out of the bank and central reserve bank. Mr. GARRETT. And so on ; so that eventually it really works out the national bank and to where there is almost only sex in bank and the 6 per cent that is really held ? Mr. LINDBERGH. Not very much more ; not any more in the bank of original deposit. Certainly not. Farmers and the national bank as well wage earners can borrow but teb bank and little from the national bank and the banks, and state bank of india sydney as well especially from the national bank and national banks, because royal bank of scotland news and they are not allowed to loan on real estate nor make long-time loans. Some of the national banks in the country violate the law and the national bank as well do make loans on real estate. They can better justify that than the New York banks can justify their continuous violation of the banking laws in other respects.
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