Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1907-11-07


II Is noticeable that New York - no
trying 70 eyade the responsibility 70
starting trouble in financial circles
The Independent, which is publishes
within half block Of Wall street
places the cause for the money hurr,
where 1t belongs and says:
1.-THE causes Of this disturbance
have been almost exclusively local
The immediate cause was the miser
able collapse Of wild speculation IA
the shares Of a copper mining com
pany. As the company was not wide
" known and had not attracted many
investors, this affair might soon been
forgotten II the originators Of the
reckless speculative movement bad
not been closely connected with the
management Of national bank, and
II that bank, ON account OF the unsuc-
cessful cornor, had not been forced to
apply to the association Of banks for
help. Aid was given, as the bank
was solvent, but upon the condition =
suggested by an examination Of the
banks loans that the controlling
owner and officers should retire from
the banking business. At the same
time several other second-rate fnan-
ciers and spectators who had OBJ
tanned control Of group Of banks
were also forced to sell out and with
draw.
lin recent years certain spectators
and promoters have gained control Of
banks In New York in order that they
might use depositors' money to boil
ster up their speculative projects,
such as the making Of Ice Trusts and
the consolidation Of steamship COM
panies. 1t was their practice to use
the stock and the securities Of one
bank as a basis for loans with which
they bought control Of another, and
SO on, until a "chain" was completed.
Thus, under lax official supervision,
there were great opportunities for
them to finance their schemes with
other peoples money. 1t was, on
small scale, the game played with the
huge surplus Of the life insurance
until the Hughes investi-
CATION imposed a check.
"These spectators in banks were
Iorced out, Their banks needed help.
Their reverses affected other bankers
who had been in some measure asso-
,iated with them. DepositorS began
10 demand their money at the paying
5ellers' windows. A great trust COM
,any largely engaged in banking was
orced to suspend. Others have been
Iaved from suspension with difficulty, |
md several small banks have closed
heir doors. As we write, the crisis
ppears to have been passed, owing
o the efforts Of our greatest banks,
ichest capitalists and the, United
tates Treasury.
Nov, the immediate cause was
ambling with bank deposits in New
'ork, gambling that is. forbidden by
wv, and for which there should be
"The collapse Of the copper share
'rnor precipitated discovery Of the {
'ttenness. Distrust spread. and per- J
city sound banking institutions were ]
objected to q very severe strain. {
ne Of the Independents Of the l
oxen Knickerbocker Trust Company, 9
vhich Ihad s67, OOo,O Of interest l
airing deposits) ascribes that insti- {
tion's misfortunes to- Mr.. Roosevelt's I
'eeches. This reminds us again Of .
,ouwer, the clerk who was arrested Z
rec weeks ago for stealing 800, 900 =
ON his employer, and who sought to b
ace the blame upon Mr.. Roosevelt, y
serting that the governments pros 2
ution Of dishonest men had made !
8 stock speculations unsuccessful. .
There were other causes which I
'erated indirectly or remotely. The I
,rld-wide scarcity Of loAnable funds t
ibarrassed the spectators. Ex- =
sure Of the offenses Of great railway 9
pitalists, OF the life insurance 9
ines, OF the New York street rail t
" jobbery, had shaken public con- q
lence in American finance and con- t
ibuted to that decline Of securities 0
lich interfered with the bank specu. q
tors plans and fastened the revolu- a
IN Of their dealings with the con- n
piled banks. Inadequate official
gulation Of the banking business