The Indianapolis journal., 1903-09-02
WOULD HISTORY REPEAT2


Wall Street Journal.
The lines of the campaign having for it's
object the defeat of President Roosevelt
for a second term do not seem to be very
definitely laid down far as some of the
forces who oppose him are concerned. Our
brilliant and forceful contemporary, the
Sun, representing as it does so ably the
views of the high finance" in this mat
ter, is probably the best guide to those
seeking information on the point. About
twice week it prints double-leaded edi-
torial criticising the President on some
ground or other. but it has apparently not
yet chosen its final battle ground. A few
days ago, for instance, it printed an article
on "The Proclivities Of Genius" the inter-
pretation of which is still disputed among
competent exegetists. The general impress
sion that 1t gave was that some gentle
men were not geniuses and some geniuses
not gentlemen, with the indicated inference
that the President was neither. The OBJ
scurity of the article-which might be ac-
couted for by the writer's general unfamil-
iarity with his subject-was notable. More
recently, however, it printed another article
recitins some of the things that the Presi-
dent has done which he should not have
done. and wondering II he would do them
again under the same circumstances. This
line of thought is interesting. and appears
peculiarly applicable to the situation In
the financial world, which has given and is
giving people all over the country so much
food for thought at the present time. We
may we'll wonder whether the leaders of the
high finance would, if they had the chance
over again, do all the things that they
have done in the past few years.
The exigencies of space prevent us from
going into very much detail on this point
| But the general features of the record
| stand out clearly and distinctly and mark
| the period one of financial excesess
never before approached in this country.
] Beginning with the era of speculative in
| dustriaI promotion and coming down
| through the era of railroad consolidation,
| conducted by the issue of purchase money
bonds of fixed liability in payment for
| stocks of contingent liability, until finally
We reach the steel conversion plan, the
Louisville & Nashville purchase, and the
! International Mercantile Marine combina-
ton, We have before us record of a
| speculative activity involving the very
| highest financial circles that abundantly
| explains the conditions now existing in the
| financial world. There has been too large
| an output of legitimate securities in the
! first place-too large, that is, in proper
! tion to the available cash awaiting invest
ment-aud in the second place. there has
| been an enormous output of securities that
| are not legitimate in the proper sense of the
| word. Mr.. Morgan's statement with re-
spect to ''undigested'' securities was cor
rect as far as it went, but the statment
/
| securities to make it complete.
| Would the leaders of the high finance
| (who are now so bitterly opposing the
reelection of the PresidenD If they had
| the chance over again, do all the things
that they have done? If Mr.. Gates, for
instance, were TO walk into Mr.. Morgan S
Office to-day with control Of Louisville &
Nashville In his pocket, would Mr.. Morgan
buy il of him once more at $50 share?
| If the executive committee of the United
| States Steel Corporation had the question
| before them to-day, does any one suppose
| that they would to-day vote to put In force
the preferred stock conversion plan? Does
any one suppose that the gentlemen who
| requested Mr. Morgan 10 act as their
| broker in forming the International Mer-
camille Marine Company would do it again
to-day?
We think not Time will probably show
that a good many lessons have beer
learned by the leaders of the high finance
in the past two years. The public has
already paid a good deal toward the tut
ton fees for these lessons. No one knows
vet what the cost will be. but the amount
that has already been paid account /.
very considerable. The country at large
is moreover at this time trying TO reckon
up how much more il Will have TO pay il
the shape of diminished business. shrunkeI
confidence and contracted credit.
1t has been era OF great things ns
IL is natural that as the time for pay
ing the bill comes along there should b,
| anxiety to shift responsibility to some on.
| else That the country, however, will In
fallibly place upon the shoulders of Wal
! street in general the principal blame 70
! whatever depression there is in store 70
us in trade as whole is reasonably clear
The probability Is that Wall street viii
have to carry more Of 1t than it Is fairl,
entitled 10. Q