Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1907-12-28
REPLY D Wall STREET
Secretary Taft Will Defend Adj
ministration and Himself
in Address
WILL SHOW CAUSE FOR SLUMP
Blame to Be Charged to Action of
High Financiers-Taft to Make Mo-
table Speech in Boston Monday
Night = Defense Against Corpora
ton Charges.

Taft will make a notable address at
Boston next Monday night. He will
give the answer of the Roosevelt adj
minstration to the charge that it is
responsible for the recent financial
troubles He will speak not only for
the administration of which he is a
member, but for himself. In some re-
spects his views will differ from those
of his chief. as they have so often in
the past
Mr.. Taft will deny that any act Of
the administration or any of it's poll
Giles had aught to do with bringing on
the recent furry. He will use some of
the data gathered by the administr-
alton and its friends, Of which [ spoke
in a recent dispatch. as to the cause
of the financial difficulties. He will
take much the same ground as the one
taken in that article. He will first
offer his warmest sympathy to all
business men engaged in legitimate
embarrassed and annoyed by the re-
cent troubles. These men are legion,
in all parts of the country, and they
are victims, in the secretary's opin-
ion, of causes and methods and Incl
dents which have nothing to do with
national politics. Fundamentally the
cause Of, the trouble is temperamental.
1t lies in the habit of the American
men of affairs of going it rather too
strong. Underneath this lies the
wrongdoing of certain men and cir
cles of men in position to exercise vast
influence upon popular confidence
just such men pursuing just such
methods as it has been the policy OF
the Roosevelt administration to re-
strain and in the worst cases to pun
ish.
Taft will point out that so far as
he is able to discern the recent imam
cial troubles may be ascribed to the
following couses:
/. TIE scarcity of available and mo-
bile capital due to the carrying out OF
large enterprises and great commercial
and industrial activity in all parts OF
the world. Looking back decade,
among the same causes may be mem
toned the Boer and usso-Japanese
wars During his trip around the
world he secretary has had an oppor-
tunity to study conditions as they ex-
ist in all the chief countries, ana
everywhere there is the same com
plant the lack of available funds, the
difficulty of finding capital for new
enterprises America is not the only
country that is suffering in that par
ticular.
Q. In an era of almost unparalleled
activity and use of money business IS
done more and more on credit. Cred
it in the end becomes strained. The
sunerstructure of credit gets too large
for the foundations Of actual capital.
The strain becomes great. everything
and every one is at high tension. me
trouble is precipitated in some quar-
ter Instantly there is a great Top
ping, a great wave OF Anxiety anu
timidity, and that is called panic.
These causes show why there is a GER
tain irregular periodicity to such trou-
bles.
So far as America is concerned, there
was added to these elementary causes
tbird The enemies Of the administra-
ton have charged that on account VI
it's policies and it's prosecution OF Ger
tain men and corporations accused ol
violation of law, confidence In Amer'-
can securities in Europe has been les
saned and such securities have been
thrown upon the American market IN
vast quantities During his visit TO
Europe Mr.. Taft had excellent oppor-
unity to get at the facts. He found
that instead Of confidence in American
securities being diminished by reason
of the policies of the government II
was because of the wrong-dolng OF
managers of trusts and insurance COM
panies, the very men who are Trying
now to make the government the
scape goat. The insurance scandals IN
New York City, and bad banking meth
DDS and mismanagement OF large cor
porations, directly led to a weakening
of the faith of foreign investors IN
American securities.
Secretary Taft will say that IN MS
opinion it comes as piece OF prllilant
audacity, to say the least. for the men
who have been engaged in this sort OF
financiering and mismanagement to
turn round and try to put the guilt up
on the government. The men who are
calling it "the Roosevelt panic are the
very men, in part, who have been guilty
of, or who have by neglect permitted or
failed to eradicate, such evils as:
Rebates on railways.
Excessive capitalization and stock
over issues
Reckless railway combinations and
deals
Acknowledgement Of great corpora
tons.
Directors working corporations for
theil. own and not for the stockholders
benefit.
In short, If the policies Of President
Roosevelt could be finished and worked
out to complete success such methods
would be largely eradicated from the
financial and business world. The tenn
perslmental difficulty. the proneness OF
energetic and enterprising men to draw
too large drafts on future expectations,
would remain But finance and business
would be more honest and investors
would be less prone to take fright at
the appearance Of the first sign of
slackaning or of recession of the wave
of prosperity.
A Pleasant Surprise
follows the first dose of Dr. Kings