The daily morning journal and courier., 1907-11-28
SEC. ROOT ID TIE
 BUSINESS LEAGUE How the Panic of 1907 Was Precipitated. LIKE THAT OF 1893 Imitators of the Weakest Side of the Ad-
 rninistration.
To Editor Journal and courIer:

League of Chicago last Saturday, which is so instructive that 1t ought to receive very great consideration. 1 quote from it:
 The panic, in my judgment, has been precipitated in the same way that the panic of 1893 was precipitat- ed. It has been popular for several years to speak disparagingly of Amer ican business men, their methods, and their institutions
 Both the secular and the religious press have vied with magazine writers Chautauqua lecturers, and ambitious politicians in painting in most sombre colors everything American and in gazetttng as unworthy of confidence quite indiscrimlnately American busi- ness men. A few most shameful dis closures have been held up quite uni versally as fair illustrations of condi- tions generally, instead of exceptions.
 Threats of criminal prosecutions of unnamed persons on undefned and in- definite charges have been liberally exploited. Naturally these things
 
 business confidence cannot be main tained indefinitely In the face of uni versal denunciation, and when conid- ence forsakes us there is nothing left on which to rest our business and in- dustrial superstructure
 "flest I be misunderstood, l want to make it clear that this country will never outgrow the lift toward civic and business righteousness resulting from the policy Of strict enforcement of law which has characterized the administration of President Roosevelt I am equally certain that it will take us some years to outgrow the evil ef- fleets resulting from ag.rt;.1r, rack- less legislatitn, and ili-ean8idered prosecutions by those WIo liapa b&en unable to appreciate t!le Presidents purposes, and who ilava therefore sought popularity by in.itAting ;I4e weakest rather than the s.tonSest side of his administration,
 Tell the American people 3G5 days in succession that if tney make ten improbable investments they will have to stand the loss, hut should they once invest proftabiv laws will be promptly enacted limiting their re- turns, and the American people will cease to Invest.
 ''7'he panic of 1893 vas precipltat- cd in precisely the same Tay, The preceding year was the bes- we had ever seen, but President Cleveland with a sincerity of purp ose aaI an honesty Of conviction excelihd hy none, plainly and unequivocally informed the country that the greenbaciS was a great dsturber of our financial peace; that the continued purchase of silver was most unwise and that the then tariff laws were vicious in The extreme, and he asked congress to correct these numerous evils at once and in most drastic fashion. The ln- effect was loss of confidence, and loss of confidence is but another name for panic. r
 But for the currency famine, we ought to recover Q falr degree of bus mess and financial health within few months. Unfortunately, however, the want oe confidence has led the De, '17Sto to withdraw from circulation the probable equivalent of two hundred carloads of gold These withdrawals cannot be forced back into circulation by legislation or decree of court. They will be returned when confidence is restored, and not until then.
 Much has been said in favor of large Central bank. Those who advo- cate this plan are, in my opinion, far better statesmen than politicians. The people do not want Gen. tral bank, and, therefore, they will never have one.
 "The so-called Canadian plan has probably about the same number of advocates as the Central bank plan, but the Canadian plan is effective only when operated in conjunction with system of branch banks.
 Tt is doubtful whether the banks will ever unite on any plan which car ries no profit The one. thing that in- terests us is some provision for the unusual emergency Not until we had the present panic have I favored a possible emergency issue in excess of 30 per cent. of the bonds se- curing circulation. l believe the pos sible issue for present needs should equal at least so per cent. of. the ag- gregate capital of National banks, or somewhat more than S400,000, ,000, and that 1t may be promptly issued when needed and where needed, and as promptly retired when the demand therefor ceases is essential,
 I should take issue with MT. Root on the point whether the weakest" or strongest side of President Roosevelt's administration, has been with or against the ealumniators of American business
 President Roosevelt's fierce denun- citations of swollen fortunes" and predatory wealth.; his forciible advo- eacy of 8 confiscatory inheritance tax his liberal exploitation of threats of criminal prosecutions of unnamed persons, on undefned and indefinite his demand for stringent and control and restraint of all railroads and of all interstate bus mess, making no exceptions and justi- flying such drastic measures, because of a flew shameful disclosures" in within Q State, over which the United States can have no juris- dlction All these and many other like considerations prove that Presi- dent Roosevelt either was or was sup posed to be, and knew he was suppos- ed to be- in sympathy with the "secu- lar and religious press" and "maga- zine writers" and "Chautauqua lact- urers," and ambitious politicians, In painting in most sombre colors every fhine Araeriran anh In ceazeftirn. as