The morning journal-courier., 1907-12-31

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 living in wars and absotute destruc-. tion of property, until the available free capital becomes we'll night ex- hausted the world over, and the prog ress of new enterprises must await the savings of more Men continue to en- bark In new enterprises. however; the capital fails them, and disaster comes,
 Causes of Financial Exhaustion.
 For eight or nine months last past, there were many indications that the loanable capital of the world was near exhaustion. This result was brought about not only by the enormous ex- pansion of business plants and bush ness investment which could not be readily converted, but also by the waste of capital In extravaganza of living and by the Spanish war the Boer war and the Russian-Japanese war, and in such eatastrophes as Bal tlmore and San Francisco. It became impossible for the soundest railroads and other enterprises to borrow money for new construction or reconstruction. The condition was not confined to this country, but extended the world over and was made manifest in the coun- tries of Europe even before it was felt hero.
 Revelations Have Created Distrust.
 Secondly, the conclusion can not be avoided that the revelations of irregu- larity, breaches of trust, stock jobbing over issues of stock, violations of law and lack of rigid state or national su. pervision in the management of some of our largest insurance companies railroad companies, traction compan. ies and financial corporations, shocked investors and made them withhold what little loanable capital remained available Such disclosures had much more effect, probably. abroad than they had here. because here we were able to make distinctions while there at q remote distance, the revelations creat- ed distrust in our whole business fab rio
 Public Frightened
 When, therefore, two or three insa- tutions, banks and trust companies supposed to, be solid, were found to have their capital impaired by stock iobbing of their officers, the public were easily frightened and the run up- on banks began. The question then became not one of loanable capital but of actual money to be used in the transaction of the day,-a very differ ent question, though of course closely related,
 Weakness of Currency svstem.
 It would seem that our system of currency is not arranged as to pernit its volume to be increased temporarily to counteract the sudden drain oi money by the hoardng in a panic. II is probable that the stringency which reached it's height on that dark day ot Oct 24 might, in part, have been al. leviated had we had a currency which could automatically enlarge itself tC meet the tremendous demand of a day or a week or a month while public confidence was being restored. The na. tional administration. together with many of the large capitalists of New York and elsewhere, put their should. CTS under the load and by various de. vices of an unusual character have brought about the present condition ot gradually increasing confidence.
 The injurious consequences to follow from this panic are not likely to bt so long drawn oIt or 10 result in sucf 1 disastrous industrial depression as thu panic of 1893 or the panic Of 1873, ana this for the reason that the condition of the country makes # so much easlei to resume business gradually, to aceu