East Oregonian : E.O. (Pendleton, OR) 1888-current, 1907-10-31

The following letter on the finan-
cib situation from Henry Clews, the
financial nestor of Wall street on the
movements of the past week in that
whirlpool will be of interest. Mr..
Clews is the leading financial writer
of the world and his observations
have been closely watched by finan-
cial circles all over the world. He
says of the affect Of the present sit
uaton:
The week has been a memorable
one in the financial history of New
York. Never has liquidation on such
drastic and extensive scale been so
successfully met and panic seems to
have been successfully restricted For
this the clearing house committee,
Secretary Cortelyou, and, a small
group of great financial leaders must
be chiefly thanked
BY clear-headed, courageous, and
decisive action they have undoubted-
ly averted financial cataclysm There
us in consequence the best of reason
for believing that the worst is now
over. This does not mean that liqui-
|dation is ended. On the contrary, the
tremendous contraction which has
been endured in the financial district
threatens to extend with more or less
severity throughout the whole coun-
try.
The full consequences of what has
taken place in the last few days can
not yet be clearly foreseen, but from
now on the liquidation promises to
be conducted in a orderly fashion and
the country saved from unnecessary
loss and disaster by foolish panic
The men who have stepped into the
breach to stay the tide of apprehen-
sion are entitled to the strongest
thanks not only of the financial COM
,munity, but of the entire country.
Especially wise was the determina-
tion of the clearing house committee
to eliminate the speculative element
from the banking situation. The
first step was to restore confidence
in the banks. AS long as these re-
mained sound and solvent the crisis
was certain too soon pass over. 1t is
the speculative element in the bank
ing cituation which has been largely
responsible for the present demoral-
ization.
The stock parket stood up splend-
idly against thhe recent storm, Fort
unately liquidation in the security
markets has strengthened the mar
ket against further attacks. There is
now no room for panic. The affect
of this collapse has no doubt reached
the climax in financial circles, and 1t
now remains to be seen what the ef-
facts win be in industrial and mer-
camille circles.
1t Is not to be supposed that the
process of readjustment is complete.
1t is likely to go on for some time to
come. Probably some recovery may
ensue later on In the security mark
cts, but the fact that we have fairly
entered into an era of business re-
action may well be accepted.
Contraction must follow, and If
commercial embarrassments multi
ply they must be accepted philosoph-
ically as part of the general reaction
Prices in the commodities markets
will now have to take their share Of
the decline. Extravaganza will cease
and economy will become the order of
the day.
New enterprises will be suspended
for some time to come and there will
be a lessened demand for both COM
modities and labor. This part of the
process of readjustment will be un-
welcome, but is inevitable and is
the only way for a substantial re-
establishment of confidence. Ry
means Of such adjustments we should
reach a lower and more stable basis
for business revival later on.