East Oregonian : E.O. (Pendleton, OR) 1888-current, 1906-05-01
QUAKE AFFECTS
MONEY MARKET
HENRY CLEWS REVIEWS
RESULTS OF DISASTER.
Says san Francisco Win BE Promptly
Rebuilt on Grander and More
Magnificent Scale-Says None of
the Actual Coin in san Francisco
Banks Amounting to 100000, 900,
VIII BE Destroyed.

The following circular letter, re-
garding the effect OF the San Francis
co disaster upon the stock and money
markets of the country, has just been
received by the East oregonian from
Henry Clews, the spokesman of the
New York bank interests:
The shock resulting from the San
Francisco disaster has been well re-
sisted by the stock market, but mN It
nevertheless m the long run exert a
depressing effect. The chief weight of
the disaster will fall upon an already
much strained money market.
Millions will be required to make
good the losses and for rebuilding the
city; considerable funds having al
ready been sent westward, with more
to follow. AS a result currency which
ordinarily comes TO New York during
the next few weeks will be retained
at the west and the chances for easier
money rates are still further dimin-
ished by this catastrophe.
San Francisco will unquestionably
be promptly rebuilt, and on a grander
and more substantial scale than in the
past. The opportunities of a growing
commerce both at home and with the
orient are altogether too magnificent
and enticing to be withstood. Ameri-
can enterprise will quickly come to
the rescue, and San Francisco. like
Chicago, Galveston and Baltimore and
Boston, will ere long rise TO a prouder
position as a Pacific coast city than
ever before.
On the stock exchange there was
more or less recession in values, par
ucularly among the Pacific railways
and Pacific coast securities. The fear
that stocks may be freely and imme-
diately sold by insurance companies
to meet losses should not receive too
serious consideration. Such losses are
first paid gradually out of funds in
bank or by means of temporary loans;
insurance companies not being in the
habit of sacrificing securities when il
is better financing to borrow.
Most of our insurance companies
are strong and perfectly sound insti-
tutions, and no serious embarrass-
ments to them are to be anticipated d
unless in one or two possible in.
stances.
The losses upon mercantile and in.
dustrial establishments will, however
be heavy, and possibly disastrous ir
some cases. The occasion is one
therefore, that will call for all the
consideration and patience that ouI
bankers and financiers can extend to.
ward a distressed community.
The California banks, although mos
of their buildings have been destroy.
ed, will not lose the money in theil
vaults. which aggregates about $780,.
100000, all being in gold. San Fran.
cisco did not suspend specie payment.
during our civil war. The state be-
ing a producer of gold, 1t enabled then
to adhere to gold payments, and they
have carried out that policy ever since
Whenever paper money is deposited
they quickly pay 1t out over the coun.
| ter.
The worst that can happen to theil
gold coin will be to melt it, a process!
which detracts but little from IL
value; so the banks money may b,
put down as being absolutely secure
The insurance on property in SaI
Francisco is estimated to cover a yer,
considerable portion of the loss, tn,
greater part Of which it is though
will be recoverable, half of the insur
ance being placed with foreign com
panies.
Blow at Roosevelt.
Another blow to the stock marke
was the drastic remarks Presiden
Roosevelt made in his famous muck
rake" speech last week. The presi
dents suggestion to tax large for
tunes after having reached a certail
limit, also to impose a heavy tax o
their transfer, would be a restraint O
thrift, as it would virtually amount t
a confiscation of property thus ac
} quired-a measure too despotic 70
! our form of government. Large for
tunes have not as yet reached a poin
to be seriously dangerous. We ha
better not jump that fence until W
get to it.
To tax large fortunes would tend {
drive money out Of the country 70
the benefit of other nations and to tn
detriment of our own. It is a we
} established fact in this country tha
! people who make large fortunes ar
generous both in spending and givin
away Large fortunes are deprived {
I serious danger in this country OWN
} to the fact that they cannot be willie
I to provide for more than two genera
! tons, while in England they are pei
petuated by the entail law. Exper
ence thus far has proven that tn
third generation invariably disburst
with rapidly their inheritance 500