The Washington herald., 1907-10-27
Market Finds film a COnSer-
Vatiye, Says Carnegie.
EXPANSION SOON TO FOLLOW
Steel King Arrives from Europe an
oPtimist-Says Plans Of the Prcsi-
tract "A Greater Volume of Foreign
Capitalize Surprise 10 Him.

Andrew Carnegie to-day described the
events Of the past few days as n clear
ing-house cyclone" and he declared that
the furry Will soon be over" that re-
cOvery Will be rapid, because of the i'm
mense resources of the country. and
warmly upheld President RooseveIts
PoHcies as essential TO the protection of
the public.
The President" he said, stands to-
day where he stood for years, and where
ii is to be hoped he will stand until our
laws protect honest investors from dis
honest officials and their swindling
schemes"
Mr.. Carnegie insisted emphaucally that
the welfare Of the country required the
reelection of President Roosevelt
Declaring that the President has been
a truly conservative force, Mr.. Carnegie
predicted a new period Of business ex-
pansion, as the result Of the Federal
plans to prevent investors being swindled'
attracting new volumes of foreign capital.
No Surprise to Him.
Mr.. Carnegie, as he came up the bay
IN the White Star liner Baltic, said:
Nothing unusual or unexpected has
occurred. On the contrary. a fall in
prices was due two years or more ago,
and it has been surprisingly small this
past week. I am delighted to hear the
good news this morning.
ITO attribute recent and present fall
in prices to the wise, and, in the truest
sense, the truly conservative resolve Of
the President and Cabinet TO enforce the
salutary laws against the abuse of their
powers by certain trusts. is only a device
To serve political intrigues
The President has been urging this
vital reform for years, during which
prices have ruled highest He stands to-
day just where he did then and where
IT is to be hoped he viii stand until our
laws protect honest investors from dis
honest officials and their swindling
schemes.
Furry VIII soon Blow Over.
This panic Will soon run its course.
as others nave and pass away, leaving
no impediment TO the return, III due sea
son. Of another period Of wholesome ex-
pansion OF our resources.
THE financial authorities have acted
boldly but wisely. And the furry viii
soon blow over. Nothing can prevent the
rapid progress Of the republic. She is all
right, and bound to distance all com
petitors in the race.
We have never had so great an ad-
vance in prices since the war, OF a rise
so long continued. That this undue ex-
pansion must have an end all students
of political economy know. The wisest
expected it before it came last year. Only
the repeated extraordinary crops post
poned il.
Speculation Causes Panics.
"Panics are now likely 10 be more fire.
quent and more destructive than before,
because industriaIsm has taken more and
more the corporate form. There remain
few Of the former partnerships of manu-
facturers which issued no stock to be
speculated in.
"Now these industrials always did and
always will vary in earning power more
than any other stocks l have said that
the steel business, for instance. was
either king OF paUper. When demand be-
comes great it takes time to build new OF
extend old works time TO mine more
minerals. and in this interval prices soar,
profits swell and the stocks Of the com
panies 90 far beyond their intrinsic value
The inexperienced read of the profits
and buy. Then comes the inevitable re-
action. The increased product not only
meets all demands, but is in excess.
Works have TO be run partially, and in
some cases closed.
Development in our country moves
much faster than in any other, so enor-
nous are our resources, and consequently
the check to this is COTTespOndingly sud-
den. The shock is more severe. but the
recovery is also far more rapid
Declines Greater but for Roosevelt.
The decline in prices would have been
much greater had the people not been as
sured that investments in the stocks and
bonds Of corporations are hereafter to be
safe-guarded to a much greater degree
than ever before. Nothing is proposed
or intended by the President in this d.
rection which is not the law to-day in
civilized States.
No railroad corporations in Europe can
increase its capital or its bonds or can
merge with another without first obtain
ing authority from a recognized tribunal
Even Canada has its commission for this
purpose. 1t is not only right, but neces-
sary 10 supervise such corporations as
we do our banks. They are creatures Of
the State enjoying many privileges. and
the interests of the nation must be pro-
tected,
Roosevelt Truly Conservative.
when this is secured it viii be seen
that the President has been a truly con-
servatlve force in the country, and that
the investor is now protected from being
swIndled by small cliques Of men who
abuse their fiduciary positions as direc-
tors
THE new period Of expansion will re-
quire capital, which will certainly flow
TO us from abroad, even more abundantly
than before. because our new laws VIII
give such security to the foreigner and
10 our own investors as has hitherto been
lacking. Nothing more is aimed at by
the President than such safeguards as
the foreign investor has at home
Nothing of this kind should be object
ed to by the honest official Nothing
less should be demanded 5y the people.
Nothing less should government give.
New York is the best market in the
world, because our country IS the most
profitable Of all countries for the invest
ment OF money and muft long be so. All
we have 10 do Is to convince the world
that our laws protect the investor as
carefully as those Of other civilized coun-
tries.
President should Be Supported.
This is the Presidents policy. He
should be supported in this by every hon
est business man. He is In action the
great peacemaker, though sometimes in