The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1900-01-12


which the government deposits in the
national repositories.
The banks controlled by the Standard
Oil syndicate are the reins which it
holds over the money market. It's rep
resentatives are in eight New York
| City banks and ten local trust COM
panies.
The trust controls banks in Balti-
more, Boston, Philadelphia, Chicago
| dncluding the First National bank,
of which Secretary Gage was president)
Cleveland, New Orleans and San Fran
cisco. In every state are many minor
banks tributary to the great ones. In
| Texas, for example, the trust controls
eighteen banks.
The New York banks are City, New
Amsterdam, Chase, Park, Second
Union, North America and Hanover
The trust companies are the Union,
Farmers, Central, United States, Fifth
Avenue, Guaranty, Atlantic, New York
Security and Trust, New York Realty
Bank Exchange and Trust, and Inter
national Banking and Trust.
The combined capital of these eigh-
teen institutions is $7O,527. $3.50; their de-
posits, 1920, 100000; their loans $443,-
1890
| Through these connections the Money
Trust knows the details of every mans
| business that it desires to know. 1t
can tell just how heavy a loan of stocks
a great bull operator carries, and how
much "short of the market the bear
| leaders Of the street are at any given
| time. The trust knows how hard a
| blow is needed to make or mar the
| fortunes of either. 1t holds the balance
of power in the street, and knows how
| to use it.
The Christmas panic, so-called, in
| Wall street extended to London, to
| Paris, to Berlin. The Bourse Of Ger
many was the last to recover after the
money trust had willed recovery. This
panic, in which money needed by bor-
rowers for a short time, sold at the
| rate of 1856 per cent interest per annum,
was disaster even to the rich. Stop
ped in time. at the will of the money
trust 1t otherwise would have result
ed in universal blight upon credit.
| Without credit the factory, the rail-
road, the mine become inert; the
workingman finds no labor, the
merchant sells no wares, poverty over
takes the farmer and the rich man,
perforce a miser. fears to embark his
money in enterprise. A panic finding
no bottom of courage and industry to
rest upon might starve, craze and drive
to suicide more victims than an Attila
or Genghis Khan boasted.
| What the money trust did to cause
| this panic is simple to explain. The
| great business Of the world is done on
borrowed money. Surplus capital seeks
borrowers or partnerships to become
productive. The money unplaced in
the more profitable industries lies in
the hands of bankers, who employ it
in loans from day to day, on quickly
realized collateral securities, such as
stocks, bonds, staples like grain, and
cotton and merchandise in transit.
Such money as this is named "call
money"
| When call money is cheap, If times
otherwise favorable, speculation in
stocks and staples increases. The
speculator who seeks a profit in ex-
pected rises in value, is enabled by the
system of buying on margin" to hold
his purchases by risking 10 per cent of
their price, or even less.
Railroad shares can be disposed of
in ordinary times at a moments notice
at a price within 25 cents a share of
the last quotation. This makes them
| good security for "call'' loans at the
banks. The purchaser of one hundred
shares, worth $4,000, leaves ST. 900 with
his broker, who can borrow the other
$4,000 at the bank, often at as low a
rate OF interest as per cent per an
mum. If the price of the shares advan-
ces $40, the speculator has won or
earned $1,000. If it falls $40, the specu-
| Ia tnr'c 41 10 win ha el,o
are sold. and the bank RECEIVERS IS, 900.
ACTIVE BUSINESS MAKES
MONEY LIGHT.
The more active general business and
industry is the scarcer is surplus money
and the higher the call loan rate. The
speculation of gamblers is checked as
the rate rises, and prices decline slowly.
Let an artificial scarcity of call
money be produced suddenly and the
loans on stocks are called in by the
banks. The holder of margined stock
must find a new loan or sell. If no
loan is to be had or If rates are prohi-
bitive, many load of stocks must be
dumped upon the market and sold at
ruinous sacrifices Then is panic.
This happened in a week before last
Christmas, causing it's "rich mans
panic."
| The money trust artificially brought
about the scarcity of surplus money 1t
controls the resources of many banks
1t locked up ready money in their
vaults The conditions of business de-
manded a larger proportion of the
worlds capital than usual in the
long time loans of industry and trade
The taxes of the United States were
exceeding the expenses of the govern
ment, and surplus, drawn from the
channels of commerce. was impounded
n the treasury, which can pay out cash
only as appropriated or in redemption
OF its debts.
The treasury offered to buy the
governments bonds. The money trust