The Irish standard., 1907-11-02

oity 10 that We are undergoing a hnan-
eial transition in America, which has
not been closely watched. There was
q time when all the Gold in America
was conferred in some half dozen of
eastern cities. It was 80 at the out
break Of the War for the Union, when
the bankers of three such cities placed
ut the service of the government the
whole gold supply of the country. 1t
continued SO after the war, and while
some Of it went west at certain times
Of the year. ito move the crops" 1t
found It's way back within short
time. But this is no longer tho case.
The West and even the South are hold
ling on to the gold they get. in a way
which is embarrassing the monetary
eenters Of the world. They are ceasing
to be merely agricultural districts. de-
pendent upon Europe and the East for
all sorts Of supplies. and consequent
ly sinking deeper in debt to both
through their dependence. They are
becoming the home Of varied indus
tries. with balance of trade in their
favor. and are not only paying off their
debts, but are saving their cash for the
sxpan sion of those industries In 9TH
or words. they are going through the
experience which the whole country un-
derwent when it ceased to export its
gold to pay the regularly adverse bal
anoes Of trade due to Europe.
But the great tall in the value Of
securities has been due to other caus-
ss besides the scarcity Of money. Re
cent revelations Of the nismanagement
Of great corporations has shaken the
sdihce Of public confidsnce. as it has
not been shaken since 1878. First the
great Life Insurance companies were
exposed as managing their affairs
moro for the beneflt Of their high off,
oials than that Of their policy-holders.
Then came the discovery Of the way
In which Mr., Hartman purchased the
Alton Railroad. and then sold 1t to
himself ana his friends as directors Of
another railroad. who pocketed the
hugo difference between tho two prices.
And now we have the wonderful pur-
chase Of 4 New York street railroad.
and its sale to the Metropolitan COM
pany for we'll on to ssrnillion. the diff
ference going to the directors Of that
comp; any. Also the discovery that the
Metropolitan company has been SO we'll
drained that 1t has had no net earnings
for years. but has paid its dividends out
OF capital.
II the public were sure that this is
all there is to tell, the effect would be
smaller. But 1t is asked what securi-
ty have we that such prsptices az these
have not been common in the manage
ment Of the great corporations Of this
class? What assurance have We that
any consolidation Of companies has
been more honestly managed than this
Of the Metropolitan company. or that
any purchase Of another railroad has
not been conducted as to put mil
lions into the pockets of the directors.
and 80 load up the combined railroad
with a capitalization, on which IL can
not earn dividends7 The men interest
Cd In this New York purchase are di-
fectors and high officials Of other large
corporations. Is it wonderful that the
stocks Of these companies have gone
tumblins. because people have lost con-
aldence in such managers? Such Of
fences infiict widsaoread injury upon
tho whole business community. by de-
stroyiug the foundation on which busi-
ness reas. They make investors tim
i'd, chOek the needed expansion Of en-
tsr1J1se. and imperil the prosperity of
IL whole country. They are breaches
tae general trust men put in each 9TH
sr, and not merely Of the special trust
put in these particular men.
The attempt has been made to load
Npon the President tho responsibility
For the depression Of corporate inter.
ssts. and especially Of railroad inter-
ssta. which has been observable for
ysar past. The Alton and the Metro.
politan exposures have checked sone-
what this loose talk. From the first
the country has been with Mr.. Roose-
welt in his demand for "a square DEAL"
and we'll satisfied to see the national
Department Of Justice and the Inter-
STATE Commerce Commission use his
big stick" We have not lost our hold
upon tho Commandment, Thou shalt
not steal"; and we are resolved that
As tar rs tho law can put a stop to the
corporate practices by which favoritism
amounting to theft has been made al
most the rule-this shall be done. In
doing this. we are laying the founda-
tions Of national prosperity upon the
NVAy1y un%A