Imágenes de páginas
[ocr errors]

Mr. Mills (continuing). And Mr. Livingstone's statement was finally given to all of the papers, and it was published by some of them I know, and that ended the matter.

Mr. PECORA. Now, on this memorandum that I have just read to you there appears in handwriting the following inscription:

The officers on the floor report that the public say another 5 percent is the bunk; that the banks might as well keep it if they cannot issue more scrip than 5 percent,

Will you tell me if you recognize the handwriting in which that memorandum is made?

Mr. Mills (after looking at the paper). No; I do not know the handwriting

Mr. PECORA. It is written on the memorandum that you received from Mr. Dodge.

Mr. Mills. That is true.
Mr. Pecora. It is not your handwriting?
Mr. MILLS. No.
Mr. PECORA. Is it Mr. Dodge's handwriting?

Mr. Mills. I don't know Mr, Dodge's handwriting, because his communications to me were always typewritten. I wouldn't know his signature-oh, yes; I would know his signature, but I would not know his handwriting.

Mr. PECORA. Was the handwritten portion of this memorandum on there when you received it from Dodge?

Mr. Mills. I don't know whether it was or not. I wouldn't say that it was or that it was not. I don't know.

Mr. Pecora. Does the subject of the handwritten portion of the memorandum appeal to you as a subject in which you were interested at that time?

Mr. Mills. Oh, yes. Do you mean now the superscription!
Mr. PECORA. Yes; the handwritten portion of the memorandum.
Mr. MILLS. Yes.
Mr. PECORA. What did that refer to?

Mr. Mills. Well, you see the bank holiday in Michigan came very suddenly. People were left absolutely strapped. The first week of the holiday, in order to give some relief to stricken Detroiters. I will say, the clearing house met and determined that all the banks, and the trust companies also met, that all of the banks, or such as could, would pay out on a certain date 5 percent; permit the public to take 5 percent of their deposits.

The CHAIRMAN. In cash or in scrip?

Mr. MILLs. Oh, in cash. We had at the closing over $60,000.00 of cash or its equivalent. So 5 percent was set aside in a special

5 fund, as I recall it, for the depositors. Well, the holiday and one thing and another went on, continued. You see the holiday started on the 13th I think it was, or the 14th

The CHAIRMAN (interposing). Of February?

Mr. Mills. Yes. And cash was at quite à premium in Detroit. So they wanted more cash. There was quite a difference of opinion as to whether the banks should make another 5 percent distribution, and there was talk in the press, as I recall it-I mean in cash. And we had plenty of funds to make it. And it was later made in cash. And the talk was as to whether it would be advisable to issue clear

ing house scrip for more than 5 percent, and it was to that matter that the superscription on that memorandum evidently refers.

The CHAIRMAN. What did they do about that?

Mr. Mills. All the banks finally issued cash, paid another 5 percent in cash. There was a great deal of talk and agitation about clearing-house script, however.

The CHAIRMAN. That was not resorted to at all, was it?
Mr. Mills. It was not resorted to at all, Senator Fletcher.

Mr. PECORA. Mr. Mills, I have before me what purports to be a printed pamphlet or advertisement issued by the Peoples Wayne County Bank, dated January 1931, upon the front page of which is the reproduction of a painting entitled “The Buccaneers.” Will you look at it and tell me if it is one piece of literature or advertising matter that the bank distributed to the public?

Mr. Mills. It was before my time.
Mr. Pecora. Will you just look at it and tell me if you recognize it?

Mr. MILLS (after looking at the printed folder). No. I see what it purports to be, but it was before my time. Of course, it purports to be advertising matter.

Senator Couzens. Put out by the Peoples Wayne County Bank?
Mr. MILLS. Obviously.
Mr. PECORA. Mr. Chairman, I wish to offer it in evidence.
The CHAIRMAN. Of course we cannot reproduce the painting.

Mr. PECORA. It is not very extensive as to the printed part of it, and it might be marked for identification only, and then I will read the printed part of it.

(À printed folder, on the front of which was a reproduction of the painting “ The Buccaneers ", was marked " Committee Exhibit No. 140 for identifcation, Feb. 6, 1934 ", and will be held among he papers of the subcommittee, but Mr. Pecora read the printed portion of the printed pamphlet.)

Senator COUZENS. Mr. Mills, do you like the title “ The Buccaleers "?

Mr. Mills. I think there is more to it than the title. There is nore to it than meets the eye by looking at the reproduction of the ainting. That is the name of a painting, isn't it, Mr. Pecora?

Mr. PECORA. I will presume so, but not being an art critic I will ot attempt to answer more definitely. Mr. MiLLs. Well, it so indicates. Mr. PECORA. The printed matter in this exhibit no. 140 for identiation, reads as follows: Years ago pirates were called “ Buccaneers." They went about in ships, and 'y people near the sea were robbed. [Laughter.] Foclay pirates are called “crooks." They go about in automobiles. They A dollar in your savings account is better than two dollars in somebody's promise.

more money with their tongues than pirates of olden days got with their ordis. Why? t is not their cleverness does it-it is yours. cou are clever in your own field of work, and that deceived you into thinking, know a good thing when I see it." to crook can sell a worthless saw to a carpenter. But he can sell it to a er or lawyer–because it is not their business to know saws. o crook can sell poor land to a farmer. But he can sell it to a doctor i mechanic.

crook cannot sell worthless “investments" to a reliable bank or bonden because they know investments, just as a carpenter knows saws.

Keep your money making money where pirates cannot get it-in your sat. ings account here.

Peoples Wayne County Bank

Detroit, Michigan
Total Resources Over 400 Million
3% Interest Paid on Savings Deposits, Compounded

Branches Throughout Detroit

Member Federal Reserve Bank Mr. Mills, according to the semiannual report to the stockholders of the Detroit Bankers Co. as of June 30, 1931, you are listed as chairman of the board and chairman of the executive committee of the People's Wayne County Bank.

Mr. Mills. That is for June 1931!
Mr. PECORA. June 30, 1931.
Mr. Mills. I was at that time.

Mr. PECORA. When did you first become connected with the bank in any capacity, either as officer or director!

Mr. Mills. I testified that when the Bank of Michigan was merged, and I was a director of the Bank of Michigan, and when that was consolidated with the People's Wayne County Bank, I was one of those carried over as a director.

Mr. PECORA. Was that prior to January 1, 1931 ?
Mr. Mills. Oh, yes.

Mr. PECORA. Then you were connected with this bank in January of 1931 when this pamphlet was issued.

Mr. Mills. I was a director, but not an officer.

Mr. PECORA. Now, is this pamphlet typical of the kind of advertising pamphlets issued by the People's Wayne County Bank? The one I gave you was issued as bearing date in January of 1931.

Mr. Mills. They had advertised for a long time, and a few montlis after I went in we changed the general advertising.

Mr. PECORA. Will you please look at the printed pamphlet I now hand you, and tell me what about it, being dated June 1931

Mr. Mills. This is one bearing a reproduction of the painting The Pioneer woman, and was the type of advertising being done then, and it was later stopped.

Senator Couzens. Why was it stopped ?

Mr. Mills. Because it was too expensive. I am not referring to it as a work of art, but for actual results it was considered too expensive, and we did not think it was good for that reason.

Mr. PECORA. Did the First Wayne National Bank ever adopt the radio as an advertising medium?

Mr. Mills. The First Wayne National Bank?
Mr. PECORA. Yes.

Mr. Mills. I don't know whether they adopted the radio or not. I know that after the Michigan bank holiday they went on the air.

Mr. Pecora. Well, before the Michigan bank holiday, say, during the year 1932.

Mr. Mills. Oh, there was talk of doing it. Whether it was actually adopted or not, I don't know. I do not believe it was. I know there was talk of doing it, and there was a demonstration there one day of the possibilities of it.

[ocr errors]

Mr. Pecora. Reference was made in his testimony last week by Mr. Stair to a radio priest. I presume reference was made to Father Coughlin, wasn't it?

Mr. Mills. You better ask Mr. Stair.
Mr. PECORA. Didn't you hear it?
Mr. MILLS. Yes; I heard it.

Mr. PECORA. As a matter of fact, didn't the bank have considerable concern before the Michigan bank holiday was declared by the Governor of Michigan I mean, with regard to the effect it was thought Father Coughlin's radio broadcasts were producing on the bank's depositors?

Mr. Mills. It did. Mr. PECORA. In connection with that did you receive this memorandum from Mr. Donald N. Sweeny, a photostatic copy of which I now show you?

Mr. Mills (after reading the memorandum). Yes; I think I received the original of that from Mr. Sweeny, or that he spoke to me about it. I do not doubt that I received it.

Mr. PECORA. Mr. Chairman, I offer it in evidence.
The CHAIRMAN. Let it be admitted.

(A memorandum dated Jan. 31, 1933, to Wilson W. Mills, from Donald N. Sweeny, was marked “Committee Exhibit No. 141, Feb. 6, 1934 ", and will be found immediately following where read by Mr. Pecora.)

Mr. PECORA. This memorandum which has been received in evi, dence as committee exhibit no. 141, is written on a printed memorandum heading of the First National Bank in Detroit, and is as follows: to Mr. Wilson W. Mills from Donald N. Sweeny, Date Jan. 31, 1933 ubject:

Accompanying this memorandum is a printed copy of “ Eight Discourses y Father Coughlin. If you were to read this consecutively you would note a rowing tendency to radicalism as he progresses and develops his theme. This ompilation extends only up to the first sermon delivered in 1933. While in their context and on the printed booklet attached, it is difficult find fault with many of the statements of Father Coughlin, three fundamental its must not be overlooked : 1. He is talking to an audience, most of whom are incapable of drawing nice fferentiations or follow carefully worded arguments. For example, in his scourse on page 45, “Rubber Credit Money", he intends to differentiate tween international banks and commercial banks, and yet throughout the tire address he uses one term, “bankers", for both. 2. Only those who have heard him over the radio, can realize the intense amatics which he imparts to these speeches. The term “ Bloody Bonds" ems rather innocuous when printed in cold type, but to hear him enunciate is sufficient to incite a bank run. 5. The entire trend of his argument is for the revaluation of the gold ounce, i by this inference a suggestion that people defer payment of their debts order that they may be able to pay them later at less actual cost to mselves.

have marked many of the paragraphs in this booklet, and refer you parllarly to the following: age 48, last line, wherein he imputes dishonest methods to Detroit bankers. identally this refutes Bishop Gallagher's statement that Father Coughlin not mention Detroit banks.

Page 64, three (3) paragraphs marked, in which he sets up his notion that the Government should establish branches of the Federal Reserve Bank to accept private deposits in an attempt to drive out competing privately owned national banks.

Page 70, in which he cites the Union Guardian Trust Company of Detroit, and other banks which have received loans from the R.F.C.

DONALD N. SWEENY Did this memorandum confirm the subject of any discussion or action taken by the bank, or its board or officials!

Mr. Mills. I do not know whether that memorandum did or not.

Mr. PECORA. Well, was there any action taken by the bank with respect to the general subject matter of the memorandum?

Mr. Mills. Yes. We considered using the radio. I think every banker, and many others in Detroit, felt very much as Mr. Sweens felt there, that Father Coughlin was not being constructive in his criticisms of banks. I, for instance, had a talk with Father Coughlin myself one evening, at a dinner at Fred Fisher's, and he told me at that time that in using the word " banker” he was referring to international bankers.

Mr. Pecora. In Mr. Sweeny's memorandum I note that he says. referring to Father Coughlin's eight discussions, a printed copy of which accompanied this memorandum:

While in their text and on the printed booklet attached, it is difficult to find fault with many of the statements of Father Coughlin, yet the fundam-otal facts must not be overlooked.

One of the very fundamental facts of the booklet is the dramatics which he imparts to those subjects, is it?

Mr. Mills. He is most dramatic.

Mr. PECORA. The principal fault that Mr. Sweeny was finding was not to the contents or substance of his subject, but more particularly to his diction?

Mr. Mills. No, sir.
Mr. PECORA. To his meaning or expression?

Mr. Mills. He was finding fault with that, and also with certain views expressed by Father Coughlin. I think Mr. Sweeny, for instance, would not agree with Father Coughlin's view as mentioned there in regard to the revaluation of the dollar.

Senator COUZENS. Of the gold dollar?
Mr. PECORA. He merely says on that:
The entire trend of his arguments is revaluation of the gold ounce.

Mr. Mills. I happen to know that Mr. Sweeny did not agree with that doctrine.

Senator Couzens. What part of Father Coughlin's speech didn't he find fault with? He says a large part of what he said you could not find fault with. Do you know what that was?

Mr. Mills. No. I have listened to Father Coughlin, I think, twice in my life. In one of his talks probably half of it, I had nothing to find fault with, nothing that I disagreed with. The other half of that particular one I disagreed with strongly. The other address I did not agree with at all.

The CHAIRMAN. The subcommittee will now take a recess until 2 o'clock.

(Thereupon, at 1 p.m., Tuesday, Feb. 6, 1934, the subcommittee recessed to meet again at 2 o'clock the same day, at the same place.)

« AnteriorContinuar »