New-York tribune., 1907-12-31
SECRETARY TAFTS SPEECH.

Secretary Taft then delivered the following
speech which he read from manuscript through
out making no additions or comment relative 10
his own candidacy for the Presidency or any
other topic:
Gentlemen of the Merchants and Manufactur-
ers' Association OF Boston l am f1ad s 70 80 o
here For more than Two years nave oeen
trying TO accept your kind invitation L DO noI
feel strange in this New England company MY
father was born in Vermont. my mother vas
horn in Boston, my two grandfathers were born
in Mendon, Worcester County; rnuch or my Doy-
hood was spent in Millbury, and was educated
or vale while I cannot claim TO be one of you.
/ like TO boast that have enjoyed the sooo III
fuence of the same traditions -,
had expected to talk 10 you about the Phh-
ipnfnes Tonight. That was OF the reasons
why / accepted the invitation so li5htiy is
a subject easy for me 10 talk ABOUT III may pe
IT is getting little stale For instance, 1 haVe
found that one OF the best methods OF dlsGour-
aging my friends the Correspondents OF tne
press in Washington from pursuing ernoarrass-
ing INQUIRIES into other matters is TO insist on
discussing with them for publication interesting
phases of the Philippine SITUATION Ihsy cav
forthwith But I had supposed that however
dead the islands might be as topic lnvitlns
discussion and attracting attention elseWn
one could rouse some excitement over IL stlh
In Boston I have been warned however tnat
here too there were subjects more ABSORB ping
arsd bv an INVITATION for this morning to ad
dress the ministers of Boston whose proIeSsloh
carries them naturally TO consioera'lon OF
worlds, / said my say IN respect 10 the FnHip
mines and the, TO me, very absorbing national
problem which hope and believe % we are work li-
ing out successfully II follows that Tor TINS
company 1 must find another subject
CAUSES OF THE PANIC
n,r,ne the last three months the country has
suffered from a monetary panic Even
yet the clearing house certificates hnser In your
1erity and of the extreme measures which had
to be taken to avoid greater disaster Doubt
less many of my hearers have not yet recov-
cred from the intense nervous strain and men.
tai suffering 10 which they have been subjected
since the middle of October.
The panic has been given certain political
bearing and Importance. For this reason have
selected as my topic Of tonight: THE panic
of 1907 it's causes. its probable effects. ana
the relation TO II OK the polcieS OF Ins nationdl
administration
What did cause the panic? Writers upon
financial subjects who have given their lives
and constant attention to matters OF this kind,
who are able to institute comparison of the
present panic with previous panscs. and who
are entirely familiar with the conditions preced-
ing all of them, substantially agree upon the
causes Panics and industrial depresslons are
the result OF the characteristics OF human
nature which manifest themselves in business or
elsewhere The world generally has certain
amount of loanabe capital available for new
neriods of prosperity this capital. with the in
for enlarging IL potentially by
credits, is put into new enterprises which are
profitable. and the increase In free capital goes
on almost in arithmetical progression
After 4 time, however. expenses of operation
and wages increase and the profit from the new
gradually changes its form into investments less
and less convertible Much of that which might
be capital Is wasted in unwise enterprises. in
extrayagance in living, IN wars and absolute
destruction Of property, until the available free
capitaI becomes wellnigh exhausted the world
over and the progress Of new enterprises must
await the saving of more. Men continue TO
embark in new enterprises, however; the cap
itaI falls them. and disaster comes
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 expan-
sion of business plants and business investment
which could not be readily converted. but also
bv the waste of capital In extravaganza of liv
ing and by the Spanish war. the Boer war and
the Russian Japanese war. and in such catas-
trophes as at Baltimore and San Francisco. ft
became iruossible 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
countries of Europe even before 1t was felt
here
second the conclusion cannot be avoided
that the revelations of irregularity breaches Of
trust stock jobbng. overissue of stock. viola
tions of law and lack Of rigid state or national