The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1907-11-01
wHAT CAUSED THE PANIC.

WHAT CAUSED THE PANIC.
William E. Curtis. a writer In tho
Chicago Record-Herald, presents the
best exposition OF the cause for the
panic in New York that we have
y.t seen. MI. Curtis, who is In
New York, has made an %investi-
into the conditions and he
not only writes Of the situation but
presents some interesting facts In
relation to the situation that lead up
10 the panic. Mr.. Curtis writes as
follows to The Record Herald:
The trouble on Wall street during
the past week would never have &C.
CURED II speculation on margins we're
not possible. 1t was entirely a
caused by gamblers whose confidence
was shaken by the collapse OF the
copper conspiracy and the u%tterances
Of the President and who proceeded
to get rid OF them at the best prices
possible. This lack of confidence
Was communicated to the innocent
public. The gambler sent around
With long faces and Respondent
utterances and predicted the ruin O!
the world Without thinking of
Heinze aud his crowd they denounced
the President for destroying the
private credit Of the country and for
disturbing confidence when be did
nothing more than declare that all
6lShonest men should he punished,
rich as we'll as poor.
The earning capacity Of no estab-
lishment in the United States was
affected; the dividends Of no COR
pOrati0n were reduced; there was no
cessation Of business In any line of
activity throughout the entire
country and while the gamblers we're
forcing down stocks on Wall street,
the prices Of wheat and corn and
other agricultural products were
soaring to almost unprecedented
figures. The runs on the banks in
New York were due directly to the
lamentatl0n Of the gamblers who
frightened honest depositors and sent
Them to draw out there deposits.
After the collapse OF the copper
TO the methods employed by Heinze
0A1N 0A0 0O0O0A0V0 RAOU1V&OA0S ~ V1O
could be.expected to trust. them or to
trust the banks which they had heen
manipulating.
II Heinze and his crowd bad not
been permitted to buy and sell copper
on margins the disaster that finally
-0vercame them would not have
II they had been compelled
60 pay the full value Of every snare
OF stock they bought. or II they bad
been compelled to exact the full pur.
chase price of every share Of stock
they sold, there could have been no
such omplAcation a. those In which
they became entanpled, and In which.
hundreds of thousands of Innocent
holders Of stock In copper mines
throughout the county have been
Involved. II 1T had not been for the
collapse Of the copper RING the
Knickerbockel Trust Company would
not have been compelled to close its
doors and the panic on the stock
exchange would not have occurred,
and yet the President OF the United
States is held responsible for all that
has happened because he declared in
. public speech at Nashville that
dishonest rich men should be pun
ished. There was a stinRing editorial
10 one OF the New York papers the
other day which held the President
responsible for the fall In stocks and
thes. allure of several professional
gand6alals, and It closed with the
9jaGn1ation: 7
sssHail Odmss W. who aresabout
to bust, saluoeutloe!n
.JhereYwas noFreference to the gang
Of highwaymen led by Heinze Of
Montana and the transactions which
alarmed the depositors In the banks
that they controlled.
Mr.. RidRely, comptroller of the
currency. was offered a princely
salary to take charge Of one Of those
banks, but declined instantly wien
be discovered the condition Of the
institution and the character Of the
men who controlled it. Every one
OF them had to resign their con-
nections with the bank at the orders
OF the clearinghouse committee,
which barely MANAGED to save 1t
from total wreck. And yet the Pres
1dent Is held responsible for the
troubles of that bank and all the
consequences of the fantastic tinan-
clal adventures ..and .sp%eculations Of
the copper crowd" as they are