The Montgomery advertiser., 1907-12-31
s TAFT SPEAKS
 IN THE HUB Secretary Defends Roosez
 welt Policies. HE OUTLINES HIS PRINCIPLES h Speech at Boston He Touches
 on Panic. ae s.ys There are Many Causes, But fhe Present Administration
 should Not Be Blamed
 For IL.
HE OUTLINES HIS PRINCIPLES

Boston Dec. 30.-Greeted with cheers as the next President of the United States" topic which he care fully avoided in his own remarks now ever. Secretary of War William H. Taft delivered tonight his first public speech since his world-circling tour, at the annual banauet of the Boston Merchants Association at the Hotel Somerset.
 The banauet closed long and stren- uous day of the Secretary of War. dur ing which he delivered brief address before 400 ministers in the morning and attended a reception and spoke before a largo gathering of the Jews of the city at the Elisium Club in the afternoon. During his visit to Boston, which ends tomorrow morning, Secre- tary Taft is the guest of Samuel Carr, a Boston banker and a relative of Mrs. Taft.
 A more notable gathering of promi- nent and representative business men has seldom been seen in Boston than that which greeted the Secretary to- night
 In the banouet hall beautiful deco rations adorned the tables. which pro- vided for seating of over 500 guests, while behind the speakers table were a great many flags. President Jerome Jones of the Boston Merchants Asso- ciation presided.
 Many Notable Guests.
 Seated on either side of him were the speakers and guests of honor who included Secretary of War Taft, Con- gressman Sherlev of Kentucky, Lieu tenant-Governor F. S. Draper of Massa- chusetts. Mayor John F. Fitzgerald and Right Rev. William. Lawrence. Bishop of Massachuset
 In introducing Secretary Taft, Pres dent Jones. said:
 We are favored this evening by the presence of a man from the Middle West. who has impressed us all with his fitness for the most important po- sition that this great and powerful na- tion can bestow. and. in brief, an off, ficiaI of great strength and wisdom. Ee has FecaatIw nut a gfrdle around the earth a 5 an ambassador of peace and good will. visiting the great rulers of mighty nations. and we want to hear him talk to us."
 As the Secretary of War rose to re- ply, all, the guests stood up with him and filled the afr with long continued cheers.
 Calls for Three cheers for Secretary Taft. the next President of the United States were heartily acclaimed. Sec retary Taft then delivered his address which he read from manuscript throughout. making no additions or comment relative to his own candidacy. for the Presidency or other topic,
 His address follows:
 "Gentlemen of the Merchants and Man
 nfacturers' Association of Boston:
 I am glad to be here. For more than two years I have been trying to accept your kind invitation. do not feel strange in this New England company. My father was born in Yer mont, my mother was born in Boston; my two grandfathers were born in Menden. Worcester County: much of my boyhood was spent in Millbury and was educated at Yale. While I can- not claim to be one of you, I like to boast that I have enoyed the good influence of the same traditions.
 T had expected to talk to you about the Philippines tonight. That was one of the reasons why I accepted the in- vitation so lightly. It is a subject easy for me to talk about. It may be 1t is getting little stale. For instance, I have found that one of the best ways, of discouraging my friends. the corre- Epondents of the press in Washington, from pursuing embarrassing inquiry into other matters, is to insist only discussing with them for publication interesting phases of the Philippine situation. They leave forthwith. But had supposed that however. dead the islands may be as topic inviting discussion and attracting attention elsewl!er, nn could rouse sofe ex- cftement over it still in Boston.
 'I have been warned, however,, that these, too borrow subjects more ab- sorbing at least for business men. So when I was honored by an invitation for this morning to address the min isters of Boston, whose profession car ries them naturally in consideration of oth r worlds. l said my say in re- nr< nj ho- -fo irfsr-vary absorbing national problem. which hope and believe we are work ing out successfully.
 Tt follows that for this company must lind another subject.
 During the past three months the country has suffered from a severe monetary panic. Even yet the clear ing house certificates finger in your bank exchanges as emphatic evidence of it's severity and of the extreme measures which had to be taken to avoid greater disaster. Doubtless many of my hearers have not yet re- covered from the intense nervous. strain and mental suffering to which they have been subjected since the middle of October. The panic has been given 8 certain political bearing of import ance. For this reason I have selected for my topic of tonight:
 The panic of 1907; its causes, it's probable effects and the relation to it of the policies of the national adminis- tration.'
 Cause of Panic.
 What did cause the panic? Writers on financial subjects who have given their lives and constant attention to matters of this kind, who are able to institute a comparison of the present panic with previous panics. and who are entirely familiar with the 'condi- tions preceding al of them. substan- tially agree on the causes. Panics and industrial depressions are the result-of the characteristics of human nature, which manifest themselves in business and elsewhere. The world generally has a certain amount of loanable cap itaI available for new enterprises or the enlargement of old ones. In pe- riods of prosperity, this capital with the instrumentalities for the enlarging of it potentially by credits, Is put into new enterprises. which are profitable. and the increase in free capital goes on almost in ,arithmetical progression. After time, however. expenses of op- aration and wages increase and the