The Washington herald., 1907-03-27
WEDNESDAY. MARCH 27. 1907.
The presldent and Van street.

The furry in Wall street continues TO
puzzle all observers. even those on the
spot There is nothing to be apprehen-
sivs about. James J. Hill tells US. and
the only trouble is an impairment of
credit. But the impairment Of credit is a
very serious thing when 50 per cent 0f
the country's business is done on paper. It
matters not whether there be substantial
reason for apprehension; a panic may
>have a merely psychological origin, as
ti3e present scare proves; the impairment
OF credit may be as real and disastrous
as if the foundations Of industry and
commerce were being undermined. These
Considerations are az the bottom of the
anxiety Of Secretary Cortelyou to con-
tribute ali that is within his power to
relieve the financial situation.
But, it may be asked, why does not
President Roosevelt do something to allay
the fears of investors, TO curb the anti
corporation and anti-railroad agitation
10 discourage legislative attacks upon
vested interests by the States? There is
a more or less insistent demand for zone
word from Roosevelt" This demand
springs from two sources-from those
who are trying, for political reasons. to
fix upon the President responsibility for
the predicament in which the railroads
find themselves as a result of inability 70
float their securities, and from others who
seem, with better intentions. to have very
confused notions of the power and func-
tiOns Of the Executive. and to imagine
that some sort of q benevolent dictator
ship has been set up in this country.
Mr. Roosevelt has avoided response to
this demand. and so has not been trapped
into a confession Of responsibility for an
agitation which 1t was his duty. accord
ing 10 current wall street theory, 20
calm as having gone beyond reasonable
bounds nor has he been induced 10 take
upon himself the gratuitous and extra
constitutional role Of guide and mentor
10 the State governments. The Presi-
dent, we think, has been wisely guidel
iu maintaining an official silence amid
the dissonant clamors assailing him from
every side. His position has been suff1-
ciently obvious all along. II was set forth
as clearly as possible in his annual mes
sage Of December last and later in his
Cambridge speech. There was. and is.
nothing alarming in il. As 70 the future,
she course of Federal legislation relating
10 railroads and other corporations is un-
determined. The problem of Federal con-
troi must be slowly worked out by Con-
gress, the Interstate Commerce Commits
sion, and the courts. 1t cannot be settled
10y Executive decree, nor even by Execu-
tive recommendations, however influential
these may prove to be. And so it is use
less to call on the President 10 protect
the railroads from the States. or the
States from the railroads. State legisla-
ton may be, in some Instances, oppressive
and injudiciOus. The railroads. however,
have a remedy for injustice in the courts.
and they are promptly resorting to legal
measures TO protect their interests. II is
improbable that any serious injustice 20
the railroads viii stand the scrutiny Of
the judiciary, and thus the fear that
state legislation viii ruin them may turn
out 10 be wholly illusory.
We are confident that when the Wall
street fright shall have run its course, our
financial conditions Will be found 10 have
touched a more substantial foundation
than they have had for some time past.