Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1903-09-04
Widespread Panic Prevented by
Back Fire Started by Bank
ing interests
STOCKS CAUSED TO SHRINK
A System of Deliberate Manipulation
Was Employed and the Time for the
elimination Of the Decline Fixed for
July and Ausust-How the Break"
Was Checked.

| New York. Sept. "A friend once
greatly impressed me by his story OF
how the lives of his family and many
| friends, thousands of head of livestock
valuable buildings, and a vast expanse
of grazing lands We're saved from de-
struction by prairie fire. The flames
had gained a steady advantage and
We're spreading and surging onward
before u high wind. Heroic efforts to
check their fury had proved futile, and
the last desperate resort of &C back
fire. was reached. The rival blaze
started and sped onward, but was kept
under such control that it was stopped
the ruin 1t caused proved an effective
barrier to the progress of the greater
fire and left it nothing to feed on
A big man in all-street, who SCI
dom talks, told this brief story, and
added:
II have taken part in starting a
back fire this summer in Wall street,
and the success of the hazardous eX
pertinent has just been assured.
I'VE have had a blaze. there has
been some destruction. people have been
burned, but possible vast financial
contlagration has been averted.
The extraordinary experience which
he related in detail shows that the
great break in securities which cuI-
minated on Aug. 10 was part of {,
deliberate plan by great financiers to
prevent widespread panicky conditions
this autumn.
1t was carefully calculated move,
led by banking interests, by which
stocks were caused to shrink until they
reached a basis where the return on an
investment was considered reasonable.
Then deliveries We're stopped arbitrar
lily and prices We're sent up by the
same system Of deliberate manipula-
tioE.
In the meantime the shrinkage of
over $2,154 100000 in stock values In
ured to the great benefit OF John D.
Rockefeller Mr.. Rockefeller did no.
operate in harmony with the National
City, First National and the Morgan
interests in letting prices decline. He
cious bag in which dropped the stocks
which unfortunate and weak holders
had to part with.
The certainty of the course Of the
semi panicky prices was established
when banking interests decided that the
level of stock values was too high
and was menace to the general bust
ness welfare.
J. P. Morgan was hard to win over
to a policy of declining prices. 1t was
his pride to support the securities iden
titled with his name. He at first de-
clined to be a party to the plan of fall
ing values. But the argument was put
to Mr.. Morgan that his stocks, includ-
ing United States Steel shares. as Well
as other securities. were too high. The
whole fabric of prices must be gently
lowered by strong hands, they said,
otherwise there was danger of crash
which would involve the business inter-
ests Of the country.
The time for the elimination OF the
decline was fixed for July and August,
the reasoning being that 1t would not do
to have Wall street In semi panicky
conditions in the fall, when the smooth
operation of the money market was
desired to provide crop moving funds.
Mr.. Morgan, who was hard to convince,
yielded pride to reason. Props such Is
Wall street is familiar with were drawn
from under the market. Maturing
loans were hard to renew. Fresh cred
its for speculative movements We're
withheld Some notable collapses fol-
lowed, one being the failure of Tai
bot j. Taylor & Co. Mr.. Taylors father
in-law, James r. Keene, bewailed, as lie
considered it, the senseless fall in
prices. But the decline went still fur
ther until good railroad stocks re-
turned the investor and 6 per cent
on market prices.
Then the bankers decided the fall
could be stopped safely. Securities
brought in fair return based on money
rates. The people generally could be
told that stocks We're worth buying.
A number Of leading issues We're Sc
lected for support, it being the under
standing that one interest should take
care of one security and another in
terest another security.
FULL MODEL OF A WARSHlP.