Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1907-11-26

A friend oi tine Ncns ASKS io, SOM"
information as t0 thc cause. oi lh'
present panic. we l-Ne endoaNoiro IT'D
cover chat subject before. but "ih s'N
again hat BE- is generally cousider.a
duc to thc mo. thst many l.r'sitors
ia bank. $50 of "a sudden w.thdf
their deposits tbus rendering tne cii'u-
latino medium inadequate l0r Che ln-
mcnso volume OF business OF me co""-
Try. Several occurrences lcd up lo tHi'.
Newspaper and magJziuo writer's
alarmed the public by showing ihe '"-
ncnso power Jhe large corporations
yield for the exploitation of tho pup
lic The insurance exposures tho Soc
called revelations concerning certain
railroad transactions. the campaign Of
retaliation chat followed. and the cone
sequent dlstrust oft a kinds of 5r-
cuudas. were only urolimluaries to thr
dynamic action of copper stock specu-
lator who suddenly threw violent
strain upon he already Unstable struc-
turo of credit which Che latter was too
weak to resist and 20 collapsed. This,
together with tho revelation of peculiar
banking practices not heretofore Dee
nevet to bc possible scattered &c is
said the Huo confidence left 90 the
winds and the average dcpOsitor be-
uevinr Dis money to be safe only IN
his own possession. hastily Withdrew
it from the bank
This is the explanation offered hy eX-
perts. But the more important ques-
ton concerns the remedy How can fun
confidence be restored most speedily
elimination and rocriuinatiou are fu-
ulc Mr. Horny A. Wise Wood in
letter Co the News on this subject
well says
"lt ihc present debaclc. as would
seem Co DEE the case. marks the passing
of our industrial life from period
OF laWlessnc5s into one which can sue
cessfully conform to adequate laws o.
property and conduct and thrive there
in. then few should complain OF the
price which s being paid. But Iet us
not pay the price Foo vain. Let us take
care 90 secure ourselves. bv so adjust
ing and enforcing our laws. that % re-
turn Go past conditions of Ialylcssucsa
snail Doe simply Impossible. and bv
ordering our Industrial activities that
hey snail seek. and bcucdt by in.
s,ead or suffer from The rigid appuca-
one of me important questions in thi.
connection is whether au industri,|
crisis is TO follow Reports from ali
over the country show that Industrial
plants arc being closed or that their
activity is being greatly limited As
consequence, worhngmen find them
selves without employment. and hum
dreds. or thousands are leaving the
country sor their former homes across
the ocean The extent TO which en-.
ployment is being curtailed may be
judged from the fact that. according
20 @ Chicago dispatch $4,000 railroad
men employed la construction work
etc. have been laid OF west Of that city.
From an parts of the country come
similar reports. Texas lumber mills
have adopted four-day schedule. TIE
largest ship and car building works n
Wilmington, Del, have reduced the
payroll from $4,000 TO 5000 a week
And thus il goes.
But Notwithstanding such uufavor-
able signs. the opinions are divided az
20 the seriousness Of the situation.
Some r..,e5,Iy.4 a,r,-rte l.fi.... tt..t
'''''
huhihess VIII snow material improve
meut iu q month, and that there viii
d.. ,o s.,i.,,s ,.,,,s,,,,,..,.s 30 ...
panic
'"' 'p''"h"''" "'fu'"'AH argues.
ne lact meantime is 20 be- consld-
,,,o,,estioyeI soii b,sis ,hat ~ i ,, l.
gold output of the world is large ana
sull increasing that commodity prices
a,, lleaoilli.lI'lS o,lefinlhed ny lhe
tborr Gam no. bs any s,i,b r.dicaI sTj
permanent recession of prices as would
take place wore the money volume of
tst,... .., .'''t
incss enterprise and .our5ce is rontir-
ned money contraction auI persist
cpcy m COMMODITY l-irra to g' down
st,u r'i ,,, M
tent as wac soon n 1sa or hi l,aa
Therefore must $50 conclude that tha
ne, ' .. .'. llF WY,
Eho ComreroI4I ANA Financial rhr,u-