Bisbee daily review., 1907-11-24
nDIErT IECCnM Ac ODJLNE LlOOUiV HO
 TAUGHT BY TIE
 MONEY STRINGENCY

 ss,,a q % .ntii:; t4i refers A s ;s==z. .s the 90 per cent of banking institu- tions which were honestly admins tered; but does not include the spe- cial strings of banks" gotten tozeth- CT by a few promoters and stock job bers who wish to use the money of depositors to carry through their own questionable financing schemes
 That the speculation referred to was not responsible for the money stringency is proved beyond question by the Tact that the monetary striu- gency was more acute after these speculative accounts had been Hdui- dated than it was while the stocks were still in the banks as collateral for large loans On the contrary, the monetary stringency was the out growth of the tremendous prosperity and industrial progress which out grew the limits and capacity of the volume of currency
 The country was saved from a much more disastrous financial col lapse by J Pierpont Morgan, John II l Rockefeller and few others who had sufficient foresight to sell treTnend- ous quantities of investment securi-
  | tlemen were satisfied at that tille that the rabid antagonism of corpOf- ations, which, beginning with the in surance investigation, was being err couraged and promoted sa strenuous | ly by the president of the United | States, must terminate very mdT-I as | it finally has
 A greater and more powerful aid ! f-, ! the speculative investment demands ! of the public Tens of thousands & men and women had been looking 1 forward for years to the time when ! they would be able to put their peg | sonal savings into high grade specu- ! lative stocks at panic prices. These people had watched market move ments and had come to realize beyond | question that great profits could be made by following this course. Tens ! of millions of dollars have been in | vested in stocks during the past fivs months in lots of $50 to S5900 each, and not a small portion of it has come into brokerage offices in cash l It was the wonderful prosperity of the people during the past few years that made this investment denlaha possible It helped to save the coun-
 cry from panic, and it has laid the
 foundation for more widespread pros perity in the future than we hav5 ever seen in the past. Wealth will have been distributed in a most re- markabIe degree when boom prices are reached a few years hence. Our
 wise statesmen who are now appeal ing to poverty and envy may wake up to a realization that the people
 own the trusts, the railroads the mines and even the banks
 The lesson to be learned from re- cent financial experiences is three fold First, the banking and business interests must get together on the money question, must understand 1t and must agree upon measures of re- form which will make it unnecessar- that panic shall always be meted GU
 as punishment For industry, enter prise and progress; and which shai
 so fortify the banking situation tha the relief now obtained by clearing house certificates can be resorted tu in the ordinary course of business without any special action which will ] distIrh- tho- socrritu- of I11hlio- -z..a..kz- dence
 The second lesson is for men in positions of responsibility It should teach them the necessity of scrupu- 1 lous honesty, extreme care and ae- curacy in handling public and prf- yate funds; and more especially in the direction Of the strings of hanks" the direction of the business Of bank ing and insurance corporations They should see to it that strings of banks 1 together by financial adventurers, and the man who backs his personal spec nlations with money belonging to oth- CT people should be treated in busf ness circles as a leper would be iE society
 The third lesson is political one It has been brought home so striking | ly to all of us in the past few month 1 that it must have been quite univer sally learned The ability to say | things in a strikingly sensational way. and to keep ones unique personality widely advertised do not constitute suitable qualifications to make a man president, governor, member of con gress or mayor. The administrations of the affairs of government is busk ness, and as far as possible men for the offices mentioned should here after be selected from among those WHO nave NcfSiOptu UustutSS CdpztEfdy in the management of their own af fairs.
 If these lessons can be learned. the great loss sustained will be compen- sated in part We say loss, for loss 1t is. When prices decline as they have. all owners of securities are losers. Wenz one loses is not made or gained IT sthers. Valpsz rs olOs ted out, as ire destroys . eailldfns This is 8 tsne for wise e0znseI ana work. for the losses sustained thrOugs an inadequate money supply, defec tive banking system. the dishonesty of those in positions of trust, and the sensational radicalism of the national administration must be restored.