The aegis & intelligencer. [volume] (Bel Air, Md.) 1864-1923, 1907-11-08
THE FINANCIAL CRISES.

out the country recently, seems to
have reached a climax, and it is be-
lieved that confidence is gradually |
beingrestored. The extent to which |
many innocent victims have suffered
will never be fully known, but only
as the years go by will we gradual
" discover one by one the innocent
holders of securities which fell to less
than one-third of their ordinary
market value in an incredibly short
time despite the fact that neither the
corpus of the property for which they
stand nor its earning power have IN
any way deprecated. Aconspicuous
instance of the pinch on large scale
is the the McCalps Ferry Power
Company which has been compelled
to suspend operations and discharge
1000 men because of inability to
secure cash.
To see a country with unparalleled
crops, active industries and flush
prices, which on the surface indicate
exceptional prosperity, so hampered
for want of money, the circulating
medium by which these things are
measured and by which the wheels
OF trade are kept moving, naturally
directs our attention to the possible
causes.
The theories are numerous and
probably each is true factor in the
situation.
First, it is generally believed that
the unusualprosperity ofthe past few
years has stimulated throughout the
world-but notably in this country
the organization of new enterprises
to greater degree than the annual
savings can provide for, thus leaving
in the hands Of promoters a vast line
of unsold stocks and bonds,-known
in the money markets as "undigest-
ed securities" In a final effort to
float these the market naturally be.
comes more and more depressed, and
the early buyer finds his own hold
ings brought down to the new low
price. 1t is estimated by financial
experts that not less than a year and
a half will berequired to save enough
to complete existing enterprises even
if no more are organized.
Second, it is generally believed that
the Presidents ultra utterances and
actions relative to railroads and
other large corporations have been
taken at more than their face value,
that these have been supplemented
by hostile state legislation-notably
ia the South-so that a state of
actual war has been practically
initiated, resulting of course in a de-
preston of values. The President
has already learned that his words
are given more than ordinary weight
and it is likely they will be more
temperate in the future.
Third, the rushing of money to
Wall street by the Secretary of the
Treasury has enabled those holding
securities collateral to loans to mar
ket them at enormous sacrifice to the
original owner, but for the benefit of
the stock manipulation.
Fourth nearly all business is based
on public confidence and when it is
shaken credit, which takes the place
of cash, becomes valueless. There is
nothing so timid as money and at the
slightest danger-signal it gets out of
sight. For instance according to the
statement of the New York clearing
house the cash on hand at the close
of business last Saturday was over
$39,OOO,OOO behind that of one week
before, and there is little doubt but
that this cash had simply gone into
hiding, and was doing no one any
good. To see a depositor withdraw
his money from bank, hire a deposit
box and place it there, is a harrow
ing but not uncommon sight for the
cashiers eyes. Of course. such a
course is absolutely reprehensible
since it helps to create and intensity
condition this very man fears. In
this connection we are pleased to say
that the deposits of the Bel Air banks
at present exceed all previous records,
those of the Hartford aggregating
$569,84O.99, and of the Second
$337,82O.2
Fifth the ideal currency is that
whose purchasing power remains
at all times practically the same and
has sufficient elasticity to meet emer-
gencies like the present; and the
country will await with much in
terest to see the result of efforts
which will undoubtedly be put forth
in this line in Congress next winter.
In the mean time a generous public
will strive not to believe that the
artificial panic is the creation of a
few promoters for their own benefit,
and, to use the words of Senator |
John Sharp Williams, that it would
promptly end if three men were
placed behind the bars.
- DI~rTA CON-