, 1907-11-18
WHAT CAUSED IT ALL?

""y ~N ~
country become "habber-gasted' and
suspend the payment of money in the
usual manner.
The question is not an easy n TO
answer. Business of a speculative IA.
ture is considerably like a rubber toy
balloon. 1t can be inflated to a large
degree. but there Is a top-a bursting
point. The top" came on Wall street
many months ago. Railroad stock
reached the summit of high prices in
1906. The bulls" had had their innings
for several years and the turn Of the
bears had come. Thousands Of brok,
ers and small toe gamblers were
buying on narrow margins II any
marked declines caused them to be.
come heavy borrowers to protect their
margins-to keep from being sold GU.
entirely. In Il single yea the total
value of railroad stocks has declined
more than three thousand million dot,
lars, a sum about equal to all the mo-.
ney in the United States. This decline
meant the financial ruin of thousands
upon thousands of small stock brok-
ers on Wall street and throughout the
country. In their struggle TO protect
themselves from utter ruin they offer
ed almost any sum for cash with which
to protect their stock. but finally were
compelled to yield and permit their
stocks to be sold. In u single year I'm.
ion Pacific stock paying 10 per cent
dividends fell from 100 to par and at
the present writing fnctuates between
l07 and ia. This great decline took
place In the face of the fact that no
change whatever had been made in the
dividend rate and that the roa was dc
ing the biggest business in It's history.
The desperate straits OF the brokers
caused cali money to 30 to more than
100 per cent.
While the downward movement was
confined to the smaller fry, the country
did not feel it, but when 1t began to
reach such mon as Heinze and his as
sociates and compelled H.. II. Rogers
to make tremendous sacrifices OF first
class securities, the people Of New
York became alarmed lest the banks
might be drawn into the wreck on the
stock market, Depositors began to
draw their money from the savings
banks and trust companies. The clear
ING nouse aSSoeia'ion uoe!u'u N
couid ho' pfo.eo' ~ -,
concern anu IL ~@s io'oeu tno ANu"n
aauon. oss'tes sH.aa
have been the largest single failure In
noi. 800 ~
naoii'ie' oo.ne $1,000 y,
" o'uise uiS 49,,
uo peop'e 'no Ivy
.nes ooe"n
"eo
s'esa.e "n'ouu. VI .,n onn
ahu pia0eo "e 1900, -.
wv me u,ai' was eo siea ~
We" iorh o"AAs "0'o sonpe' "
the hrs' ia" Vi n".u'e "
honor ai"i.s h"ue Wy 500
ior which 'hey "e.e "eune o"
aseh's' III urn 'no
terior Clues "ere oonhpe,eu " ie'u
payment W oepoe''ois ~' .ney e'
get lheir reserves anu so 'ne en'"e
aallou o.ea"e ih'o''e
me statement nh"oe e'e'S"ne.
mat the'e Is a s'rlnseney III euiie"oy
is not accurate inere ne'er was ~
Huch money III the COUNTY, as a. pies
enI Inc slrihsehcy is en'ireiy IN con
haence Inc 10Y paifooh hao oeeh
down beyond the point Oh its
n 1t oursted- a reaoJusemeht Ut a
period OF ~nQuidauon became necessary,
ii the people OF the nation Wouio now
make up ther minds mat there Is no
there would De none, n
business would so on IN the usual man
ner. For illustration, our local condi'
uon may De cited. Inc people OF Lar
annie a In their
banks gave no heed 20 the u on
wall street and the result was that
business went on IN Laramie without
the slightest disturbance. Ii the peo'
Pile OF Laramie did not read the papers
they would not know that anything
unusual had happened. 1t Is purely
a question of confidence.
Editor c. c. Goodwin of Goodwin's
Weekly. published at Salt Lake City,
says that a Christian Science spirit is
needed and discusses the situation In
the following able and logical manner: