The news-democrat. (Providence, R.I.) 1906-1909, 1907-12-31

percentage OF actual money passed.
Every manufactures. every merchant.
is, under modern conditions, dependent in
the successful conduct OF his business up
on bank credits extended at regular sea-
sons The banks themselves in turn ac-
quire the means of granting these credits
largely from the money of their deposit
ors.
And I'm loaning from their depositors
the banks rely on the improbability that
more than a certain part OF the deposits
will be called for at any one time. A lack
of public confidence In the banks creates
a common desire among depostors to
withdraw their money.
1.-The fright which seizes the creditor.
the depositor. and leads him to hoard his
money spreads like wildhre and is as un-
reasoning and unreasonable the spirit
OF n mob A run on the bank ensues.
THE bank then call on their debtors,
and the tremendous structure depending
upon credit, tumbles Meantime, men who
properly count themselves as millionaires,
who are honest, conservative, solid busi-
ness men, always responding to their OBJ
legations. find themselves as helpless un-
der such a financial cataclysm they
would be in an earthquake.
Gradually reason resumes its sway,
but the injury to credit and the blow
which has been struck at the normal busi-
ness progress has more or less perma-
nence. Values have shrunk, plans for new
and increased business enterprises must
be abandoned and liquidation and house
cleaning takes place.
Lok FOR SCAPEGoAT.
'The business men who have had TO
stand the strain-who have seen their
fondest hopes crushed and have only been
able to come through the crisis with the
greatest effort and most substantial finan-
roll nd
ed.
'"rhey believe. and generally they are
right that this disaster has come upon
them without fault of theirs. II Is unjust
to them.
mo matter how many symptoms OF the
coming trouble there may have been pan
les always come with shock and a tre-
mendous surprise and disappointment.
And hardly is the panic over but fierce
discussion arises as to the cause OF It's
coming With various motives. editors and
public speakers rush TO the front to fas-
ten upon something or someone the re-
sponsibility for what has happened.
ut is entirely natural that, in the con-
dition of mind I'm which the suffering
business men are left by the great strain
and trials such suggestions should receive
marked attention. and that the more den-
nitely the personality of the scapegoat
the victims of the catastrophe.
''The economic and political history of
the last four years offers TO certain ele-
ments I'm the business and political COM
munity an exceptional opportunity.
Let me invite your attention 10 that
history II is that Of a giant struggle
between the national administration ana
certain powerful combinations In the
financial world These combinations, for
lack OF a better namef are called trusts
They engaged I'm different lines OF manu-
facture and production, and by assem-
bling large amounts OF capital Into one
mass in particular line of business
menaged, by srtful and sl0ilfully devised
but illegal methods of duress, TO exclude
competition and monopolize the trade.
''They became the dictators TO great
railroads, however POWERFUL, and by
threatening withdrawal Of patronage
secured unlawful and discriminating re-
bates, greatly increasing their profits and
still more completely suppressing CON-
petition.
Managed with conspicuous business
ability, these trusts went into legitimate
foreign trade and largely Increased our
country's exports. The profits which they
realized enabled them TO engage In other
enterprises carried on by legitimate
methods until the hold which they ac-
auircd In the business community gave
them a position OF vantage it seemed
hopeless Ia oomb,sI
The basis OF thctr original success
and the maintenance OF their power was
the violation OF the sherman antitrust
law and the interstate commerce law.
and for time both laws were but dead
letters upon the statute books of the
United states.
''rhc purpose Of the administration of |