The herald., 1896-08-27
THE TRUE INWARDNESS

thing of the true inwardness" of the
uneasy feeling which few weeks ago
was so evident in every direction. We
were assured at the time that it was
all due to Mr.. Bryans nomination and
the popular favor with which that nom
nation was received. The Mckinley
organs and orators declared that busi-
ness confidence was impaired; the treas
ury. gold reserve was falling steadily;
gold was leaving the country every day
and the country would be fortunate
indeed if financial crisis could be de-
layed until after election. Everything
locked blue when the announcement
was made that, for a while, at least
we might breathe more easily. Danger
had been averted by Mr. j. p. Morgan
and his associates, who by superhuman
efforts had secured control of Eu-
ropean exchange to such an enormous
extent that they could and would pre-
vent gold shipments by keeping ex-
change rates at a point so low as to
render such shipments Improbable. The
plain inference was that only Mr.. Nor
gan and his syndicate stood between
the country and ruin.
We must confess to little skepticism.
We have repeatedly deprecated appeals
to class prejudice, whether bankers or
farmers, creditors or debtors, were the
object of attack. But men calling them
selves bankers and constantly engaged
in speculation did not seem likely to be
the ones who would make supreme ef
forts and run great risks for the benefit
of the country. 1t now seems that the
whole thing was a stock jobbing opera
ton and antagonistic to no class more
than the bankers, who confine them
selves to their legitimate business and
earn the confidence of every business
community by serving its interests. We
feel, therefore, that we are not attack
ing the banks by pointing out that the
feeling of apprehension which menaced
business few weeks ago was cultivated
by stock operators masquerading as
bankers.
The financial journal above referred
to is bitterly opposed to free coinage,
but in commenting in late issue upon
the condition of the stock market it
gave what seem to be inside facts
After expressing the opinion that the
extremely low prices offered a favor
able opportunity for investors, it goes on
to say: "An experienced financier, who
during the vicissitudes of the past
thirty years has been singularly sue
cessful in the purchase of discredited
securities al low prices, which were af-
terward sold at several times their cost.
lays down the following outline of the
situation and prospect: A combina-
tion of powerful capitalists and bankers
have control of foreign exchange to
the amount, it is claimed, of $3.50 0O0, 600,
and have undertaken to protect the
government gold until after the Novem-
Der election by preventing exports
which indicate that the buyer intends to
hoard gold. With these bankers are
naturally allied powerful interests of
the same class in Europe, and their con-
troll over financial affairs is perhaps
more complete than that of any similar
organization ever formed in this coun-
try. These men. while performing 2
highly commendable service to the
country, are naturally not averse to
reaping some profits from their opera
tions, particularly as those operations
might involve them in loss if carried
on without reference to any of the other
markets. 1t is the opinion of this OBJ
server that they have been at least
passive contributors to the recent big
decline in stocks. They have been en-
tirely willing that prices should go very
low, and have doubtless bought consid-
cradle quantities of stocks at a time
when they knew no outsider would dare
venture into the game. After the de-
cline had apparently about reached its
limit these men further controlled the
list by making the rates for money high,
which would give them advantage over
any outsiders as buyers. With their
command of foreign facilities they ara
able to get funds at rates very far be
low those prevailing in this country
Thus they can acquire immense quanti-
ties of stock at low prices, and once
they get all they want they will be en-
tirely willing to have prices advance.
That their time has come is natural
opinion in view Of the strength the mar
ket has shown this week.
This is decidedly interesting. All of
the forecasts of evil and faint assur-
ances of safety were only part and par
eel of the game to fool people into part
ing with securities at less than their
real value.
The responsibility is pretty clearly
fixed, and we will probably hear less
about the malign influence of a Demo-
cratic policy upon the business of the
country