The San Francisco call., 1899-12-20

- buy the many trust stocks THAI listed in
- Wall street
Politicians were furiousy denouncing the trusts,
while the speculative spirit OF the people tempt
ing them into existence by eagerly taking their
stocks At that time The Call treated the multiplied
ton OF trusts a result OF speculation rather than
as permanent change in the industrial methods OF
the country Admitting that the survival OF some out
OF the many trusts so suddenly created would follow
still that would mean the permanence of such as had
genuine commercial utility In that discussion OF the
subject said also that the general rush for trust
stocks, being speculative was one OF the conditions
which implied money panic and shrinkage Of
speculative values which would affect those which
were non-speculative This forecast was justified
when the market had be relieved by the offer OF
the treasury to redeem SIS, 100000 in Government
bonds, and again by the failures and panic OF Monday
in New York
There is denying that the spirit OF speculative
gambling in this country has been cultivated by the
practice OF applying the Federal treasury for help
Those who gamble for living are more reckless
when they feel that the treasury be depended
to sustain gambling values and ease the pains Of
liquidation by pouring out money in emergencies.
This feeling the basis Of Black Friday and has
been in every speculative panic experienced since the
fiscal policy OF the country underwent the change Of
1862
Financiers have seen clearly that this process has
always entanged the public and private credit OF the
country To the reasons for Federal relief have
seemed good, because actual values and speculative
values are not Disseminated between when a panic
comes on. Gambling has been ambushed behind le-
gitimate business, which it can carry down with it.
and the Government has rallied to save legitimate
business from destruction.
II ie worth
which passed the House on Monday is the begin
ming Of the extrcaton OF the public credit from its
partnership with the private credit OF the country
When speculation can no longer resort to the
treasury for protection there will be less of it When
the treasury protect itself against depletion OF its
gold reserve that reserve may be less in volume and
such amount is released will enter into circulation
TO serve the financial needs OF the country Without
such safeguards as the House bill provides every
speculative panic proceeds tap the treasury; the
endless chain is put in motion; greenbacks flow into
the treasury and gold flows OUT and the greenbacks
Immediately reissued, Immediately return demanding
more gold, until TO the public credit bonds have
to be sold to get more gold to supply the endless
drain This amazing scheme is ended by the new
law. When gold is paid out for greenbacks they
stand cancelled to all uses except reissue for gold
again The spectators permission to eat his cake
and keep II IS ended All men who know the de-
STABILITY of divorcing public from private credit will
hail the reform.
When this bill is the law panics may still come
No financial system standard OF value. has ever
prevented them, and will Until the lottery
OF speculation IS on such basis that the holder OF
every ticket gets prize larger than the ticket cost
these panics will occur, and that means they will al
ways occur But hereafter the holders OF blanks can
rot demand that the Government cash them
The proponents OF unsound money are already in
the field citing Mondays liquidation as an effect OF
the House bill. But these same prophets ceaselesslv
jackdaw about the crime OF 1873 and paint in rosv
tints the conditions that were upon the country be-
fore the alleged demonetzing OF silver They forget
the panics OF 1887 and 1857, which in proportion TO
the volume OF business then existing to be affected
by them, destructive as the two panics that
have occurred since 1873
II may well be made known that the sound
money sentiment OF the country proposes to 90 for
ward TO the accomplishment OF its purpose though
every speculative trust stock on Wall street goes TO
the barber-shops for shaving-paper and though the
politicians who shrek against trusts stand on the
corners crying out against sound money measures as
the OF the downfall OF the trusts which they
have just denounced