Los Angeles herald., 1907-10-17
CONFIDENCE GIVEN
ANOTHER SHOCK
MUST BE ELIMINATED
BY PUBLIC
Eminent Financier Says Railroads Af-
ford a Much More Substantial
Investment Than Mercantile
or Industrial Concerns

Henry Clews OF New York makes the follow
ing Illuminating comments on the financial
and industrial situation in his weekly letter,
under date Of October 12:
Confidence has received another rude shock
through the amazing exposures resulting from
the Metropolitan Securities investigation. 1t is
now two years since public disclosures of
breach of trust in high financial circles began,
followed by the collapse of the copper manip-
ulaton and finally these later scandals con-
nected with the local traction situation. Hence
no wond,r confidence is disturbed! And who is
responsible? Messrs. Roosevelt and Hughes.
who have teen the instruments of exposure
or the individuals who conceived and conducted
these operations and abused the trusts placed
in their charge? OF course, the guilty protest
against financial house cleaning OF course,
they endeavor to ward off official investigations
on the plea that they disturb confidence. But
responsibility for the latter should be placed
distinctly where 1t belongs; upon the perpe-
traitors of misdeeds, and not upon those who
are the means of turning on the light and pre-
venting future operations of this sort. Those
who have trifed contemptuously with public
interest and displayed blind disregard OF
stockholders rights are the real culprits. It
becomes daily more evident that when our
corporations are honestly managed. the public
and stockholders will get their dues, values
Will become more stable, and American credit
which is now at low ebb In al the great
financial centers Of the world will be restored
to its rightful status. Throughout all these
disclosures there is one CLEAN of encourage
ment; and that is that public opinion is
aroused dlC Will iHSiSl upOh SASdhs 90 "SiA 90
capable, management. Eventually these dis
closures will result in the raising OF the
standard of corporate management. but mean
while the public is dazed by these scandalous
revelations and wonders what next financial
iniquity will be brought to light.
Stock market values were also unsettled by
other influences. Monetary conditions are still
Vor,v unsatisfactory. The demand for moving
the crops and for general business are very
large; tine situation being materially aggra-
waited by the high prices prevailing for nearly
all commodities. The situation is rendered
more acute by the fact that we cannot depend
/. degree which we have done for the last
three or four years. Our credit abroad has not
only beeil impaired by well known conditions
hut we are less able to command that assist
ance than usual Usually at this season there
is an ample supply Of grain and cotton bills
in the market which can either be depended
upon TO bring gold this way IL needed. or to
extend our credit abroad. Exports of both
wheat and cotton. however, are more or less
restrain i by high prices. 1t is probably true
that eventually Europe will be compelled to
take our wheat and cotton on high basis
but The fact that foreign buyers at present are
holding off is more or less detrimental to the
local financia, situation.
The situation abroad is still unsatisfactory
On the continent especially there seems to have
been ver' similar OVERRIDING to that which
has been experienced in the United States
Capital IS practically scarce over there as
here the principal difference being that the
situation is not aggravated by the dscredit-
able operations which have unfortunately oc-
CURED this Side
There Is just one other element which tends
to delay the restoration Of confidence. and that