Fair play., 1906-01-13
FINANCIAL CONDITIONS.
Republican System Offers No Pro
lection Against Rapacity
of Banks.

AS a rule the spectators and busi- |
ness men can protect their own inter-
ests in times of financial stress. and
therefore advice to them is superfiu-
GUS. But the farmers, storekeepers
and workingmen have but small
chance of getting reliable information
of the great affairs Of the world that
may lead to financial disaster In this
country. From the trend Of events
there is danger of world panic, al
though now the times are what are
called prosperous. The danger comes
from our frenzied financiers and the
revolution in Russia. Property is be-
ing destroyed In Russia OF millions OF
value, and the crops have In some
provinces been poor and neglected. II
order and good government was Ger.
tain tomorrow, which is far from the
case, the people of Russia would be
unable to pay the taxes necessary to
support the government and pay in
terest on the public debt. The people
will require time to recuperate from
the devastation that they themselves
nave NduStu III litil luls dEdihot NhNit
licentious rulers.
Over two billions of Russian bonds
are held outside of Russia of which
the greater proportion have been pur-
chased by the people of France and
Germany. II the interest on these
bonds is not paid it will bring dlsas-
ter to many of the holders, and prob
ably a panic on the Paris and Berlin
stock exchanges AS far as borrow
| ing more money Is concerned, Russia
| is about at the end of her string, and
| to try to borrow to pay interest would
| only aggravate the unfortunate condi-
tions. There is also the danger OF re-
! pudiation of the debt II the revolu-
| tionary party succeeds. Fortunately.
there are but few Russian bonds held
in America or England, but foreign
finances are so inextricably mixed In
this age in all the financial centers,
including our own. that what affects
foreign money markets affects the
United States also.
But the avarice of the frenzied
financiers of Wall street and other
monetary centers is of much greater
danger to our people than the Russian
revolution. Many of the great banks
and trust companies are loaded to the
guards with watered stocks and other
Securities" which they have loaned
upon at the present fictitious values
The failure in Chicago of great bank
and it's allied financial trust company
and savings bank is an example OF
what may happen elsewhere, These
financial institutions were considered
safe and reliable but It was discov-
cred when the crash came that the
peoples money had been used by the
chief official for speculative opera
tions. The other banks, to save them
selves and Wall street, have come to
the rescue and offer to pay the depos-
itors, but that only makes the other
banks so much the weaker, and such
other institutions in like predicament
Thinking over all that may happen
1t will be wise to be careful and con-
servative in expenditures, and above
all keep out of debt until these foreign
clouds blow over and the frenziet
financiers of Wall street and else
where has recovered their senses.
The Republican system of finance
offers no protection to the peopl'
from the rapacity OF the banks anC
their frenzied efforts at money max
ing. The government bank examiner
but seldom discover that a bank 4
rotten until the crash has come. Near
ly every national bank in New Yorl
has had less cash on hand than tn
law requires for weeks and have beeI
obliged to get their friends, the trus
companies, to take over many larg
loans to be in no worse condition, bu
the United States treasury official
! complacently shut their eyes to tn
. fact, and Secretary Shaw condones tn
: offense. The execution of the law b
3 these Republican officials is all Il
, favor of the bankers, who supply cam
q paign funds 10 keep these partisa
r friends in power, for all these ban
9 examiners are partisan Republicans
appointed on. the recommendation c
: Republican leaders. This is therefor
n a good time for the man OF sma
d means to avoid extravaganza and say
@ money for the rainy day that ma
g come much quicker than is expected