The Fairmont West Virginian. (Fairmont, W. Va.) 1904-1914, 1907-12-31
IFAF'lIIITGRE: |:
NEXT PRESIDENT

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Continued From Page one.)
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let ether worlds, | said my Fay in re.
lspect to the Philippines, and the to
me- very absorbing national problem
(which 4 hope and believe we are work.
ing out successfully. 1t follows that
for this company, / must find another
subject
\ The Money Question. s.
| During the last three months, the
country has suffered from severe
monetary panic. Even yet the clear.
ling house certificates linger in your
bank exchanges as emphatic evidence
Of Its severity and Of Its extreme
measures which had to be taken to
avoid greater disaster. Doubtless
many OF my hearers have not yet re.
covered from the intense nervous
strain and mental suffering to which
they have been subjected since the
middle. Of October. The panic has
been given a certain political bearing
and Importance. For this reason,
have selected as my topic OF tonight:
The panic Of 1907, It's causes, It's
probable effects. and the relation to it
OF the policies Of the national admin
Istration.r
What did cause the panic? Writers
upon financial subjects who have Civ.
en- their, lives and constant attention
to matters OF this kind. who are able
to Instltutesa comparison OF the pres.
ent panic with previous panics, and
who are entirely familiar with the con.
ditioRs preceding all OF them, sub
stantially5 agree upon the causes. Pan
les and industrial depresslons are the
result Of the characteristics Of human
nature, which manifest themselves in
business and elsewhere. The world
generally has certain amount Of
loanable capital available for new en-.
terprises or the enlargement OF old
ones. In periods OF prosperity, this
capital with the Finstrumentalities for
enlarging 1t potentially by credits is
put into new enterprises which are
profitable, and the increase In free
capital goes on almost in arithmetical
progression. After time, however,
expenses OF operation and wages In.
crease aud the profit from the new
enterprises grows smaller. The loan.
able capital gradually changes It's form
into investments and less convertible.
Much OF that which might be capital is
wasted In unwise enterprises. is ex.
travagance in living, in wars and alb.
solute destruction Of property, until
the available free capital becomes well
nigh exhausted the world over. and
the progress Of new enterprises must
await the savings OF more. Men con.
tinue to embark In new enterprises.
however: the capital fails them, and
disaster comes.
Business Expansion.
For eight or nine months last past
there were many indications that the
loanable capital Of the. world was near
exhaustion. This result was brought
about not only by the enormous expan.
sion OF business plants and business
investment which could not be readily
converted, but also by the waste OF
capital tn extravaganza of living and
by the Spanish war, the Boer war, and
Russian.Japanese war, and in such
catastrophes as Baltimore and San
Francisco. 1t became impossible TOR
the soundest railroads and other enter.
prises to borrow money for new con.
struction or reconstruction. The con.
dition was not confined to this coun.
try. but extended the world over and
was made manifest In the countries OF
Europe even before 1t was felt here.
Secondly, the conclusion can not
be avoided that the revelations OF If.
regularity. breaches Of trust, stock
1obbing. over.issues OF stock, viola.
tons OF law. and lack OF rigid state or
national supervision in the manage
ment OF some o. our largest insurance
companies. railroad companies, trac-
ton companies and financial corpora.
tons shocked investors and made
them withhold what little ioauable
capital remained available. Such dis
closures had much more effect, prob
ably. abroad than they had here, be.
cause here we were able to make dis.
tinctions, while there, at "a remote
distance, the revelations created dis.
trust in our whole business fabric.
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