The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-12-23
DOLLARS STILL
BOOSTING HIGH
Efforts Being Made to Estab-
lish a Cause for the Panic
Other Than Roosevelt.
ANDREW CARNEGIE'S IDEA
INHERENT TENDENCIES OF HUI
MAN NATURE"
ANDREW CARNEGIE'S IDEA

New York, Dec. 22.-The financial mar
kets last week were largely concerned
with preparations for the coming annual
settlements and operations in securities
we're for the most part in allegiance or
under oppression. Transactions in stocks
We're to great extent in professional
hdhds and the pressure on the market
was not acute, in spite of the terrifying
process IN progress by the banks. With
tne premium on currency perssting in
New York and the outflow of cash to the
interior still going on. in spite of the
period OF usual return flow of funds
which go out TO move the crops the con-
Nlctlon was brought home to bankers that
the return OF normal banking conditions
vas not TO be looked for before the turn
OF the year. Since the clearing house
banks have made up but a part of the
oeilcit below the legal reserve held and
sun nave a large volume of clearing
mouse certificates outstanding, the inn
OF recuperatiOn was recognized The
heaVy demands TO be faced for the year
end settlements emphasized this call.
Money Market Affected.
The money market was affected in con-
sequence, call loans ruling higher. The
Tune loan market continued almost nor
mai, the supply OF funds in that depart
Hieht oelng or the scantiest, and there
was no effective demand for mercantile
paper, of which absorption is relied
upon TO carry over commercial affairs
through approaching maturities OF large
obligations The week was notable for
The important contributions in public ad-
dresses and official reports from many
OF the best informed minds on financial
AFFAIRS TO the discussion and elucidatiOn
Of the causes Of the recent crisis and of
seossible remedies. The effect has been
to broaden the general comprehension of
the faT-reaching underlying conditions
which led up TO the crisis and to relegate
10 their proper position of relatively less
Importance some of the more violent man
Hestst tons in the bank and money oper-
ations which were symptoms rather than
active melting causes.
Expert Opinion.
Andrew Carnegie's assumption that
commercial crises are the outgrowth of
inherent tendencies in human nature, not
10 be confined by legislative restrictions,
was in practical conformity with the
views expressed by William Sherer, man
ager of the New York clearing house
who declared that the great disturbance
Of capital caused by the war between
Japan and Russia had been further &C
centuated by the earthquake and fire loss
at San Francisco, while eXtrayeg CANT lv-
ing and the disclosures in the manage
ment of corporations has helped to bring
about alarm and loss of confidence. The
annual report of the controller of the cur
rency, William b. Ridgeiy offered what
some regard as an Illustrating opinion on
the scope of the banking disturbance,
which broadens the field of its causes
far beyond the immediate troubles in
New York. Says Mr.. RidSely;
THE conditions which led to the panic
of October and November, 1907, We're not
due to the lack Of confidence of the peo-
pie in the banks. but more to a lack of
confidence of the banks in themselves
end their reserves Banks have been
fearful that the reserve system would
break down, and in consequence il has
broken down, and the reserve deposits
have been only partially available"
Work Of Reform.
Another important contribution to the
discussion of measures for correction was
found in the exhaustive report of the
special commission appointed by Governor
Hughes TO recommend the reform of New
York bank and trust company laws espe-
cially in the reserve requirement upon
"a ust companies engaged in banking bust
ness Financial opinion sees with salts
faction a way thus opened for correction
Of a situation that constituted the weak
est point in the whole chain of the bank
Ing world when the strain was put upon
IT,
In its immediate effects on sentiment
regarding the financial and commercial
outlook this comprehensive discussion AMI
frank expression have served to deepen
somewhat the appreciation of the extent /
of the disturbances and there have been
a corresponding growth of anxiety as TO
the amount Of remedial work which must
be done to restore conditions to their pre- |
vious prosperous level.
Tbora TJaueop Wife 0f Andy TJanco71 !