The Washington herald., 1907-10-24

This panic in New York is caused
first. by the rotten condition of these big
financial combines, and. secondly, by the
peoples discovery of that fact Che ex-
posures during the past two years. be-
ginning with the contributions of insur-
ance companies to the Republican cam
paign fund, has naturally destroyed
public confidence
Representative Gillespie, of Texas. one
Of the minority members Of the commit
tee on banking and currency the author
Of the Tillman-Gillespie resolution Of the
last Congress. under which the Depart
ment of Justice received its information
concerning the coal-carrying railroads,
made the above statement last night In
discussing the financial condition In New
York.
The condition of these concerns add
ed Mr. Gillespie. lis due TO their mOnop-
olistic power. They vastly initiate their
obligations in the way of what is known
as watered stock. To keep this watered
stock and fraudulent expansion Of credit
requires immense sums Of money, which
heretofore they have obtained from the
public through banks, savings and trust
companies and life assurances. Natu-
rally, as soon as the public realized the
true situation as brought to light by the
recent Investigations, they stopped in
vesting and depositing money with these
institutions. In fact, they have been with
drawing what they have deposited, and
collecting. This causes such a collapse as
we are now witnessing.
Condemns Loans of Public Funds.
There Is another matter" continued
Mr. Gillespie, and one which affects the
people as a whole. not a few Wall street
gamblers. I think the action Of the Sec
retaTy OF the Treasury in Fastening 10
New York % render assistance TO these
gamblers Is an outrage. Think OF It,
The reports show that the Secretary Of
the Treasury has already deposited with
the national banks S17S.0Oo zoo. and now
here is a threatened emergency call for
S25000000 more. All Of this the peoples
money without ! cent of interest being
collected from the banks 1t is no more
right 10 assist bankers in straits than
1t is TO assist farmers. mechanics, or
merchants. II seems TO me that what
the Secretary Of the Treasury ought %
do is TO make certain that the Sis 000. 600
already loaned out is safe. and collect
that about which he has the least doubt.
rather than loan more out Heretofore.
our deposits have been made on United
States bonds. but under Mr. Shaw the
plan was adopted of accepting bonds
other than those Of the government The
truth is, We do not know what We have
to secure our N1S,o00,Ca
Constant Calls on Treasury.
ITO start with this policy Of the Sec
retaTy is not a healthy remedy. Worse
still. it IS one which calls for constant
repetition. Whenever we have troubles
Of this character the first thing the Wall
street men do is to clamor at the doors
Of the Treasury Department. There is no
more justification for helping these men
than there is for the government 10 back
a losing player in a game OF poker. Il.
would be thought ridiculous II the Sscre-
tary Of the Treasury should come 10 the
assistance Of a farmer who, by reason
OF a failure Of his crops, was forced to
the wall, and vet such a case would be
comparatively lsudahle.
Throughout the country the financial
situation AZ heart Is sound. The Wall
street men have gotten into this trouble
through gambling. and ought to be made
to take their medicine"
Remedy Is TO Enforce Laws.
The hnal remedy" concluded Mr. Gil
lesPie. lis the destruction Of monopoly
by an enforcement Of the laws We have
had on the statute books for years. It
is simply outrageous that these laws
should have remained a dead letter so
long. The reason they were enacted was
TO prevent just such experiences We are
passing through. Not only have these
conditions arisen in the face Of the
statute law of the republic. but are in
direct violation Of the old common law.
which we inherited from England What
we need Is an administration heart and
soul behind the law
President Roosevelt has not done as
much as he should. The whole prose
cutting power, every district attorney in
the United States should have been at
work years ago The distinction between
good and bad trusts the President is dis
posed to make Is one which will always
paralyze the efforts Of an administration.