Daily capital journal. (Salem, Oregon) 1903-1919, 1905-04-15
degree as to how their money sham be

The farmers and the independent
artisans Of the towns generation ago
held the bulk of the nations private
property, but now the combined agri-
cultural interests are overshadowed by
the corporations. 1t is officially re-
ported that the corporations Of the
country are now capitalized at $s2,-
000,0OO,000, while the agricultural in
terests only aggregate $19,00O,o00, 900.
Then through the banks there is OPP
portunity for the corporate authorities
to control that portion of the country's
wealth which is supposed TO belong to
the people of moderate means.
The result will be thai the average
American, instead Of depending on his
own intelligence for success will be-
come dependent on others Thousands
who have means will come to rely sole
ly on the great financial institutions,
and those who possess only the capaci-
ty for labor will come to depend on
the great industrial combinations. This
is form of paternalism which must
inevitably sap the self-respect and self
reliance of the people.
There can be no doubt that the in
vestment of mans savings in banks
or in bonds makes the owner moro der
pendent than if he managed the same
capital in small shof or factory Of
his own 1t is true that there still re-
mains in the country great vitality
among certain small industries, and
that many small stores, owned
by individuals or partnerships, with
moderate capital, still do prosperous
business. But the tendency is other
wise, and legislation, even in the line
of free rural delivery and other useful
and apparently innocent innovations,
leads further in the same direction.
In 1850 the deposits in the banks of
the country amounted to little over
two and quarter billions of dollars. In
1904 these deposits had grown to about
eleven billions. Thus while the popu-
lation increased about 8 per cent and
the general wealth of the country 6
per cent, the money withdrawn to a
considerable extent by small business
men and wage earners from active pro-
prietorship to be left on deposit in
banking institutions and lent to those
skilled in the ways of corporations,
grew over 500 per cent. If this is not
an alarming tendency, we do not know
the meaning of that term.
The remedy is not far TO seek, but
may be hard to realize. What is need.
ed is a diffusion of the proprietorship
of the country's industries-the capi-
tai needs TO be placed again in the
hands of the smaller investor, and un-
der his direct control. How are we to
secure this desirable endi In no way
conceivable except by the national con-
troll of corporations, and the working
of an economic law that will effect a
cure for this tendency toward central
ization.
| Publicity as to the doings of the
managers; honesty in every department
of administration; safety and security
to the smallest as well as to tho largest
owner of shares in the enterprise. BY
these means proprietorship will be grad
ually transferred to millions Of hold.
ers, each interested in the development
Of the enterprise, and none depend
ent on the will o; selfish magnate.
This in some measure involves what
is called corporation, " and co-opera-
tion in many eases has, in the past,
proved disastrous financial failure.
There ought TO be wisdom enough,
however in our financial experts, to
devise some honest plan by which
measure, at least, Of cooperation can
be secured and successfully worked
out. At any rate, there is plainly a
need of stimulat.=S demand for
truth and honesty in the management
Of corporate enterprises, and also Of
broadening the basis of direct owner
ship and control. The obvious way TO
do this is TO make investment in cor
porate stock safe and attractive by
suppressing stock jobbing and all other
forms Of "frenzied finance" This
would not only promote the thrift and
prosperity Of the people, but would as
sist in the solution Of many OF the
economic and social problems Of the
day. THE SENTRY.