The Irish standard., 1907-12-14

threatened has been averted. The
credit is due entirely to the people
themselves. Depositors have shown
good sense and remarkable patience.
The bankers have been enabled, with
the cooperation of the general public,
to pass over a difhcult situation. With
out the cooperation of the depositors
money panic of serious proportions
would have surely overtaken the coun-
try and brought with it the ruin of
many banks and consequent loss to
many people.
If the panic is finally averted, as 1t
seems probable now. 1t may be ex-
pected that the bankers and the Sec
rotary of the treasury will assume the
credit and ascribe the success to the
deals made by the treasury with the
banks. 1t may even form the founda-
ton for future high financing. The
action of the secretary Of the treasury
will surely come UP for fair and Just
criticism as soon as the danger of i'm
mediate panic has passed away. The
press, as we'll as the general public,
has been very patient with the bankers
during their time of trouble. In plain
words, the action of the treasurer was
nothing more than loaning the peoples
money to the banks without interest,
Before the issue of the Panama bonds
and the treasury certificates, the gov
eminent had already loaned the banks
over $200,000,eO0. The issue of the
Panama bonds and treasury certificates
at this time was only another way of
extending the government loan to the
banks. 1t is not pretended that these
bonds and certificates were issued to
secure money for the use Of the gov
eminent. They were issued to be sold
to the people to secure money to place
in the banks, the Panama Canal bonds
bearing 2 per cent interest and the
certificates per cent, both redeem
able by the government. Thus the
government loaned to the banks, with
out interest, over 100000, 900 in actual
money and loaned their credit to the
banks for s15o,0O0,0oo in Panama Canal
bonds and Treasury certificates, for
which it pays interest on $4,000, 1000
at 2 per cent and on 800, 100000 at 8
per cent.
Every patriotic citizen should be
willing to go to extreme lengths to
avert a panic. Certainly the Ameri-
can people have done SO in the last
few weeks. but we think the bankers
and the secretary of the treasury will
make a serious mistake if, now when
the worst of the danger is over, they
should assume. the credit for saving
the situation. The facts are too clear
to admit of any. juggling. The high
financing of the Wall street gamblers
brought on situation in this country
that called for high financing on the
Pait VI lnS 5OF 1HS 6OVSII-
nent's action, if not positively illegal,
is certainly subject to criticism and
would have brought on severe criti-
cism if it We're not for the delicate sit
uation. 1t amounts to just this; The
United States Treasury turned over to
the banks of the country considerably
over 2oo,ooo,oo9 in actual money with
out, any interest and for no govern
mental purpose. This not proving suf-
f1cient, the United States government
pledged its credit to the people in this
country who had money and proposes
to sell to them s5o,ooo.ooo of canal
bonds and pay them 2 per cent in
terest on those bonds, and 100000 900
treasury certificates and pay them
per cent on those certificates, and turn
over the money thus secured to the
hanks