Manchester Democrat. [volume] (Manchester, Iowa) 1875-1930, 1903-08-26

enormous decline III the quoted value
of stock. The Napoieons of finance are
turning their eyes to Congress TO help
them and the select members of the
Finance Committee of the Senate are
preparing n bill which is intended to
be Just what the Wall street people
want Very seldom has Congress leg
iislated entirely as Wall street has die
tated, because what the stock jobbers!
ask for is just what the other people
who pay the taxes don't want, and
won't have If they can help It. As
long MS times are good In Wall street
and there are plenty Of lambs to shear,
the flnanciers make no demand for
Legislation, but when the crop Of lambs
have all been sheared and the bulls
and bears undertake to strip the hides
from each other, then the trouble be-
gins and the President is called upon
to order the Secretary of the Treasury
to laid the banks and prevent a
panic.'
Early in the fail of 1902, when the
first big break in the price Of stocks
commenced, the condition of the finan-
cial weather In Wall street was squat
ly and the Secretary of the Treasury,
under orders from President Roose-
welt, at once commenced to aid the
banks in every possible way. Bonds
were purchased at an enormous pre-
MUM, the price being virtually die
tated by the sellers. All the receipts
from internal revenue were deposited
In the favored banks and allowed to
remain there, without interest, and the
vast sum of over $50, O00, 600 Is now
loaned to the banks, on which not one
cent Of interest has ever been paid.
All this succor not being found enough
to stem the tide Of liquidation, the
banks We're allowed to withdraw their
United States bonds, which they had
deposited with the Treasury as securl-
ty for loans, and In place thereof de-
post city and railroad bonds. This
allowed the banks to use the released
United States bonds to increase their
circulation and thus to further initiate
the currency.
AT the last session of Congress the
attempt wns made to pass the Fowler
asset currency bill and the Aldrich bill,
but the proposed legislation was de
feated.
Then further cry of distress came
from the banks and Secretary Shaw
began the refunding of United States
bonds, which has just been closed with
an issue of over $4,000 COO Of 2 per
cents in exchange for like amount
Of 3 and per cents, the government
paying the enormous premium to the
banks and other bondholders of over
So, 500, Coo for the privilege of doing 50.
The statement is now made by Mr..
Seligman, one of the principal Wall
street bankers that tue administration
is prepared to take further measures
to relieve the money stringency, II
such becomes necessary, to relieve the
pressure in Wall street.
President Roosevelt is officially
quoted as favoring theafinancial legis-
lation that the banks ask for and will
issue call for an extraordinary SEES
sion of Congress, to commence Nov. 8.
for that purpose. All this shows that
President Roosevelt has authorized
mora and greater favors to the banks
and Wall street than any President
ever did and all the efforts of Republl.
can newspapers to make 1t appear that
Wall street is opposed to the Presi-
dent Is not only absurd, but not borne
out by facts.
The sDOOk that worries Wall street
is Congress, for 1t is notorious fact
that at any session Just before ma
tional election the politicians are on
their good behavior and do not, as a
rule, enact legislation that will be
questionably received by the voters
That President Roosevelt will recon-
mend financial legislation to Congress
is said to be assured, but whether Con
gress will dare to legislate further in
| the interest OF the banks and Wall
street is problematlcal.