The Boise citizen. (Boise, Idaho) 1906-1910, 1907-12-06
CAUSES OF THE PANIC
w,e IT pRFMEDITATED BY MOST POWERFUL
"'' INFLUENCES OF WALL STREET

of Ol0io'
+ioo IS made that the Standard Oil J. Morgan and allied
had seized advantage of the occasion to wreak revenge
borb valuable properties Of rivals We quote IN part
anu b country is now passing through money panic fnan
i, rc financial crisis, and business depression
nT financial crisis began last January but did not become
od ,,nti last March, when liquidation IN bonds and STOCKS
P1 1oro;no nroporions 1t renewed in August and
N October 1t still in Wall street. but has EXTENDED INTO
[ fields and severe liquidation is in progress IN common
tics real estate general business ana aDo " " ~
rectons prices rates and wages are falling
The money panic began on October ~ When the nS P
aton Of dust was shown by the great run on the fncke
hooker Trust Company, Fifth avenue and lmy-ouI
and on its Harlem and downtown branches II hdS c
M present moment November 18), though its panlcY aspects
are less in evidence because the commercial banks Will cash ony very
~ checks and the savings will permit Withdrawals only at
the end of thirty sixty ninety days after notice mas "
bv deoosors The premium of from to per cent on
or rather the discount of to per cent on CHECKS
ied for two or three weeks in New York and other cities Vs
m cent at one time in Pittsburgh attests the eaerneSS OF P
to get money while the fact that large proPoruo OF w
exchanges are now made with clearing house ceruncale
similar substitutes money indicates the extent 10 "0
is boarded and in way measures the dlstruSt ana
- 49, t institutions in the minds of large proportion OF
population -. ,,4 No,enober
/ though marked decline occurred in some industries e@
the automobile piano and confectionery industries last SPs
49, 1os+ summer and in the theatrical industry since
Seotenber Railroads have also for many months Dee s%
ualy abandoning Improvements and laying on llr1 5 GOOD
venber began mills have been closing or working at
in all sections of the country, business beng curtaeu'
are increasing bank exchanges decreasing 'nel a
off or NIT on short time commercial activities are eeS
other evidences of industrial rerenchment are ,+
more rapid rate perhaps, than was ever wireS' " - Of
generation Never before there such sudden Sps
;lt pr,o 5oo 600 men have been laid off within three
weeks about 1000 of whom in the iron ana steer
and $4,000 or $4,000 in the railroad industry au. of
go MANY men are out of work and so great IS the
wordnpnen to Europe that for weeks the stean'5 -
fOrs
instances thew could take only half of the applicants Inc
stopped selling hird-class tickets two days before SAILING
venber 16. -.>-D
WHEN THE CRISIS WILL END. -
a1, o a;o will probably end not later than December
when the nreni,r on money will disappear and hoaroeu "
will return in large volume to the banks Currency
past have been of short duration - fou IN nices
"Tbe financial crisis will end only when the rapid IAN
~ d br the demand for credit capital loalSJ
1o 1rd CO that the rate of interest is not nlich ao
"1be industrial depression will continue for SIX OF es ~
possibly for one or even three years - W. " rfacl,r
numerous failures of banking and commercial houses ever
tortation corporations possibly and e'e
nb b severe declines in real values in many II % ms
sections of the country -, l;o-, course o
"Tbe above is brief description OF the oolnS,y lof
events following an acute crisis such are now pas %
90 49, +ce the different stages of financial an
idt;.I s;s as accurately as physician can trace n
stages Of somewhat complicated disease More l;lan bn
these students saw that we were approaching
make predictions and to issue Warnings
"bv IS it that in spite of the marvellous grown - mo,
wealth. we are today in industrial distress
idle men than ever before in this country! ,,,,r,
WAS THE PANIC PRENlEDllAlED or
"These and similar questions are no" OeiS fnt ansv
able newspapers not all in the West South slu
is that the panic is result of few hundred Wall stree
S - haroe that this crisis deliberately paiaeu y
punderers who precptaed the pane Oy e la by refusr
certain copper and other securities as collateral 10 m reng bar
to clear for the Knickerbocker Trust co' ,ev and
themse
eed 10 any srlps e w Morse A. Heine E R. Thomas JO