The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1907-12-01
Declares Wall Street Financiers Have
Substituted Worthless Securities
For the Peoples Deposits.


history, woulu have made all your 9th
er WORKS combined appear as a stage
curtain harvest compared with con-
solidated cotton and western corn field
at garnering time.
you did not do this, but instead
you told the people that they must re-
turn their boarded savings to banks
and trust companies, which you assur-
ed them were absolutely safe, although
almost every paper which published
your proclamation had alongside of it
accounts of new wholesale plunderings
by bank and trust company officials,
and your secretary of the treasury
could have told you at the time you
wrote it there were scores of others as
yet unexposed. which were hanging
each by an eyelash At the same time
you assured the country that new laws
would be enacted at the coming session
of congress.
In regard to the promised new leg
iSlation | desire to record my prediC-
panic:
IF the moves are enacted, the mil
lions of empty dinner pals will this
winter and next summer be turned in-
TO ear-splitting megaphOnes, and the
real owners of billions of savings will
more savagely demand their savings
in money or securities other than the
Systems homemade securities, or
class-made "checks'': and want to add
this to my prediction: If the System.
which is still plotting, does not at
once recognize that the day has gone
when the American people can be fool
ed on System finance and cease its
plottings and turn about and assist
you in finding the only real relief spos-
sible for the preset 'crisis,' the Sys-
TEN will awake to realization that
the recent panic was but the loose end
of fuse which grounded in the CEN
ter of "a dynamitery.
ON he second day of the panic one
of the strongest and most conservative
one which had with foresight and wis
dom prepared for the storm, had in its
vaults S12 2,5OO,OG0 gold and 81, 100000
currency. This S15,OOOO0O of depos-
itors' money. without their consent.
was rushed to one of the notorious
trust companies of New York, whose
deposits had been turned over to the
System in exchange for wildcat ''se-
curities' at grossly inflated prices
This entire $l5.OO0OOO was paid out 20
this trust company's depositors in a
single day. This notorious trust COM
| pany in ten days paid out to it's depos-
| itors over S40.OOOCO0 of cash which It
| had secured from other banks and
trust companies. and even with this as
Bistance this trust company would
have failed, and thereby would have
caused the topping of the entire finan-
| cial structure. but for another branch
| of the System, the greatest monopoly
| in the world, and which is owned by
American investors and supported by
the American people, which issued
$50. 100000 of securities (bondSl. and
exchanged them for particular lot of
grossly inflated two-thirds worthless
paper titles which this trust company
and other banks and trust companies
had in their vaults, and which had
been put there by the System when il
withdrew the peoples deposits. This
$50, 100000 of arbitrarily issued for the
purpose of manipulating this section
of the financial structure securities
was then shoveled into other banks
and trust companies in exchange 70!
their deposits.
| 1T would be an insult to your intel
ligence for me even to call your atten
| tion to the unsoundness, the vicious
unsoundness of this entire transac
tion, which works out just as if the
people of community, having captur
ed bank burglar who had squanderet
the proceeds of one banks lootings
furnished him with new tools with
which to rob the remaining banks G:
the community of sufficient money t(
make good what he had been arrested
for stealing
AT the time this transaction was
made. during the panic, it was stated
by the Systems representatives thai
they were justified in committing thi.
crime, because if it was not committed
other New York banks and trust com
panies. which We're in even more rotter
condition, would have their real stand
ing exposed and the entire structur,
would topple
In summing up I submit for YOU
consideration, and for the considera
tion of congress and of the American
people and the investors of Europe
that there is but one cure possible TO
! the present "crisis." That cure cal
be instantly applied. That cure i
the creation of confidence among al
the people in value of paper titles rep
resenting the real wealth of the Amer
: ican people-not simply confidence il
the money of the American people
: but in the paper titles to the other sec
tions of real wealth. stocks, bonds, etc
but particularly stocks and bonds
and ] respectfully submit that this con
| fidence can be created only in one way