New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-10-23
SLUMP AND PROSPERITY.
a Plain Talk at the Bankers
o. COnuenfioR.
rEyr TELEGRAPH TO THE TRIBUNE

L
rlause l,y his peroration. in which he declared
,ba. the course OF business to-day depended
,.rrsl,- on the bankers. II the bankers acted
wisely and conser1ratively they could avert any
thing Ike serious trouble. The speculations pro
motions and comb nations that had run 'heit
wild course he declared. were caused by ana
were not th, cause OF. prosperity, but the ad-
vance OF country should not and would not
cease because che speculative attempts 10
discount the future and overcapitalize earn
sng mower has met with foreordained and inev-
stsble failure"
A series OF hve-1nirBute talks by delegates from
.fe various States. in which each reported on the
financial condition Of his territory bore out the
s,ptinistic tone OF Controller Eidgelys ADDRESS
From Maine to California and from the Great
lakes TO the Gulf delegates gave accounts OF
the great increase in the productive power OF
their state industries and OF the consequent
prosperity Of the banks The convention was
greatly Impressed with this testimony from
body Of trained experts. and as each sat down
after adding his mite TO the general report OF
prosperity and growing business there was
hearty applause
That the fidelity insurance system was not
defeated permanently yesterday was shown TO-
sav when a resolution was introduced for per-
retuating the fidelity insurance investigation
committee. The executive council recommended
r,roFl
This assures the matter coming before the con-
vention next year when the advocates OF the
system promise that all the delegates Will be
Thoroughly Informed in regard TO the merits
OF the plan.
Every day since the convention has been in
session the telegraph has brought the report
If a failure OF some large Eastern bank. This
serial story OF bank failures has become
standing Joke among the delegates. But all
admit that the failures have been due TO bad
business methods and not to any decrease Of
prosperity W. O. Jones. OF the National Park
Bank OF New-YorlI. in commenting on the latest
failure to-day said that John Thompson, pres
sdent OF the defunct First National of Allie
gheny. had tried to get charter for Pitts0urg.
but had failed Then he went TO Allegheny
and bought UP the charter Of a small bank
and developed it into the First National Mr..
Jones said that he had attended eighteen bank
ers' conventions in different States this year
Tomorrow viii see the close Of the convention
with an address by United States Treasurer
Ellis II. Roberts on The Effects OF the Inflow
OF cold" Then several days viii be given up
70 excursions and about half the party VIII
return by way Of Los Angeles. The New-Nork
delegates have had good time nere' as lhey
have been the guests at many social affairs.
Controller Ridgely's speech was in part as
follows:
ana Rs The wars e 81 a 6 SSS the s oou
recover from the depression following the panic
IN he ftda-nental condition Of our people and
dnced and saved. Our prosperity in business has
been based on the very best foundation. II has
been the result OF the most legitimate causes ana
forces and all these only stin in operation
NAYS the case ho%eVef in such times this move
ment Of activity has been accompanied by a large
OF speculation. not only in stocks, bonds
and securities but many other lines and credits
have become more and more expanded.
in stock speculation and promotion especially we
$500 are fcc-,i1e aisrInad AMI ag111jnr 20 asL
end hC yvho r1OE- ~
perity This causes doubt and increasing hesitation
financial and currency legislation or governmental
AID in meeting the situation as IT exists at the
ali less connected and interviewer, the bust
q currency or nanca Causes and it IS not to
" legislation we should look for permanent relief.
and placing the blame for present business oondi-
lions on some one else Tor one section OF the coun-
try TO blame another FOR the West 10 say il is all
foolish people say they are glad TO the specu-
lators lose. because they alone are TO blame and
hardly be any more mistaken view than this. The
81 business IN an parts OF the world
the money market IN any large way reaches US all
much of wild and foolish: some Of it fraudulent
and bame the specaator He always follows S% sS aad
participates 10 such q movement and always will
great fradinc and doaIin IN SOCKS s5 st OF ne
IN Wall Street. which is a necessary part on mod
eIn business DO NOT misuaderStand me as defend
pre s9 g9e men q Se S9 m Ps business and
during The last few years NJ rapidly advancing
90 IL and you. as bankers, can do much dis
courage II not TO prevent II as any one can.
means chief OF leading factor in the situation
The whole movement since the revival In business
came has been more or less speculative. and just
Sc business mas been unduly depressed and prices
the other extreme Wall Street and the SPECTATORS
sTe PERHAPS nor 50 very much more TO blame than
bank entirely free cast the first stone9
Exchange.
underwrite promotions. but It viii be hard 10 find
the bank whose officers or chief customers are not
many cases neThrS Tor = is Co.,, ~, * ~, 80 III
services a hank car render fts ~, % -. IIS Det
encourage local enterprises which are legitimate
This is time Tor any feeling or discussion be-
tween different sections Of the country, classes OF
people. lines trade as TO who is most 10
blame or who can stand il best. We are an face
20 face with the situation and equally Interested
- - 70 uJne lot passion or excitement. panic
year but TOT quiet. calm consideration. courage
Eervatism. Considerinc an the 'circtngfarHes ana
the pace At which business has been going FOR the
has been such decline in The prices Of securi-
III %, u fasne nc Inst ne country has stood IL
little trouble with the banks and 50 few failures
inherent strength Of our conditions and ~ he
absolute confidence in currency and government
beginning with the stock panic in May. 1901 there
nsEe been &c feIeated and tremendous slumps in the
Dr. OF st,yhs ahd securities. collapses and fail
ures n railroad and industrial syndicates com
our situation been less strong would have proo
duced a bad panic and disastrous commercial
best possible ground for the belief that it need 90
49,. ~ ,i sete IS no reason for its
great depression As Secretary Shaw has SO VII
said There exists to-day no one fact and no
combination Of facts. the logical sequence ~
which suggests disaster j disaster comes II will
be psychological and not logical The microbe IL
81 exists is in the mind: il IS not elsew here
For about Year there has been steady almost
unlnterfnItea cecine IN me prices Of all stocks
and bonds. u has. however, teen 50 comparatively