Courier Democrat. (Langdon, N.D.) 1891-1920, 1906-01-25
FINANCIAL CONDITIONS
The Russian Revolution NAV
Produce q Panic.
MENACE OF FRENZIED FINANCE

SSSlC" ouCTS
No Protection to Dank Depositors.
A Good Time For the Man of Small
Means to Econonizc and
For q Rainy Day.
AS u rule, the spectators and bust
ness men can protect their own inter
ests in times Of financial stress. and
therefore advice to them is srDerdu-
GUS. But the farmers, storekeepers
and workingmen have but a 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 a 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
order and good government We're Ger
tain tomorroW-which is far from the
case-the Russian people would be I'M
able to pay the taxes necessary to sup
port the government and pay interest
on the public debt. The people will re-
quire time to recuperate from the dev-
astation that they themselves have
caused in their fury against their IL
centious rulers.
Over $2,000,OOO,OOO in Russian bonds
are held outside Of Russia, of which
the greater proportion have been pur-
chased by the people of France and
Germany. If the interest or these
bonds is not paid it will bring disaster
to many Of the holders and probably a
panic on the Paris and Berlin stock
exchanges. AS far as borrowing more
money is concerned, Russia is about
at the end of her string, and to try to
borrow to pay interest would only ag-
gravate the unfortunate conditions.
There is also the danger of Reputation
Of the debt If the revolutionary party
succeeds. Fortunately there are but
few Russian bonds held in America or
England, but foreign finances are so in
e%xtricably mixed in this age in all the
financial c%enters, including our own,
that what affects foreign money mar
kets affects the United States also.
But the avarice Of the frenzied fnan-
ciers of Wall street and other none
tary centers is Of much greater danger
to u people than the Russian revolu-
ton. 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 a great bank
and it's allied financial trust company
and savings bank is all example Of
what may happen elsewhere. These
financial institutions were considered
safe and reliable, but it was discov-
cred when the crash anne that the
peoples money had been used by the
chief official for speculative operations.
The other banks, to save themselves
and Wall street, have come to the res
cue and offer to pay the depositors, but
that only makes the other banks so
much the weaker, and such indOrse-
ment could not be extended to other in
situations in like predicament.
Thinking over all that may happen,
it will be wise to be careful and con-
sentative lin expenditures and, above
all, keep out Of debt until these foreign
clouds blow over and the frenZied
hnanciers Of Wall street and elsewhere
have recovered their senses.
The Republican system of finance
offers no protection to the people from
the rapaclty Of the banks and their
frenzied efforts at money making. The
government bank examiners but sell
dom discover that a bank is rotten un-
til the crash has ON Nearly every
national bank in New York has had
less cash on hand than the law requires
for weeks and has been obliged to
get it's friends the trust companies
to take over many large loans to be in
nc worse condition, but the United
States treasury officials c~omplacently
shut their eyes to the fact, and Secre-
tary Shaw condones the %otfense. The
execution Of the law by these Repub-
lican officials is all in favor Of the
bankers. who supply campaign funds
TO keep these partisan friends in pow
er, for all these bank examiners are
partisan Republicans appointed on the
recommendation OF Republican lead
ers. This is therefore a good time for
the man Of small means to avoid eX-
travagance and save money for the
rainy day that may come much quicker
than is expected.