185

"I went into Myron T. Herrick’s office in Paris, and told him that I came 

there to study 

 

cooperative banking. He said to me, ‘as you go over the 

countries of Europe, you will find that the United States is the only 

civilized country in the world that by law is prohibiting its people from 

organizing a cooperative system.’ I went up to New York and talked to 

about two hundred people. After talking cooperation and standing 

around waiting for my train--I did not specifically mention cooperative 

banking, it was cooperation in general--a man called me off to one 

side and said, ‘I think Paul Warburg is the greatest financier we have 

ever produced. He believes a lot more of your cooperative ideas than 

you think he does, and if you want to consult anybody about the 

business of cooperation, he is the man to consult, because he believes 

in you, and you can rely on him.’ A few minutes later I was steered up 

against Mr. Warburg himself, and he said to me, ‘You are absolutely 

right about this cooperative idea. I want to let you know that the big 

bankers are with you. I want to let you know that now, so that you will 

not start anything on cooperative banking and turn them against you.’ 

I said, ‘Mr. Warburg, I have already prepared and tomorrow 

I am going to offer an amendment to the Lant Bill authorizing the 

establishment of cooperative 

 

 

national banks.’ That was the 

intermediate credit act which was then pending to authorize the

establishment of cooperative national banks. That was the extent of 

my conversation with Mr. Warburg, and we have not had any since."

Mr. Wingo testified that in April, May, June and July of 1920, the 

manufacturers and merchants were allowed a very large increase in 

credits. This was to tide them through the contraction of credit which