Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1907-03-16
A RICH Mans PAN|C'
New York Financiers Say Their
is Little Danger to Real
Business
WOULD ADVISE TO GO SLOW
Conservative Policy Will Preserve
Country From Any Grave Danger
Loss Of Confidence in Railroads, One
Financier Declares Opinions Vary
But Little.

But Little.
New York, March 16.-Tho prom
inent bankers and financiers hesitatea
after the close of the market to make
any definite predictions as to the etfeet
upon the business situation of the
slump in securities, the opinion seemed
to prevail that. tho the situation was
serious, a conservative policy would
prevent the spreading Of the demorali-
cation outside of the money market ana
would leave the commercial and indus
trial interests but slightly affected.
President Hepburn OF the Chase Ma
tional bank said:
"a money stringency exists, turnout
the commercial world. The situation
in Germany is acute. The Deutsche
bank in its annual report disclosed the
fact that industrial development had
been carried beyond the point OF pru-
dence and foreshadowed the reaction
which has taken place. The condition
ID London also IL acute.
Enormous borrowing demands and
real money stringency have induced the
quasi spanicky conditions which have
prevailed. It is a rich mans panic,
and the results, however serious, Will
not be disastrous. The commercial IN
terests turnout the country should take
I notice, however. Money will be difficult
Ito obtain, and prudent men will save
themselves by adopting the most cons
servative policy at once. America
must finance its affairs this year with
out foreign aid"
+. a. yanderlip Of the National City
bank said:
The banking position tonight Is re-
markable Sin the fact that the call for
margins has been met with prompt
ness, by practically every borrower.
The decline, therefore, would not
seem to be the result either Of
stringenoy in money or an impossibilt'y
to obtain credit, because in spite of the
great depreciation in prices borrowers
are able to keep margins good. De-
liberalization has been confined to the
stock market. We see no signs OF its
extending elsewhere.
.sThe action of the. secretary Of the
treasury is admirable and conserva-
tive" M
Victor Morawetz chairman Of the
Atchison, Topeka & Santa Fe. looked at
the2matter from the standpoint Of the
railroads. The danger of the present
conditions he considered to lie in the
attitude Of the state legislatures as OPP
posed to the national legislature toward
the railroads. He said:
II am satisfied that the present de-
preston on the stock exchange Is
caused almost entirely by sentiment
and vague fears, most of which are
unfounded. Spectators for a decline
have taken advantage Of this condition
Of mind of the people generally and
Z have used every trick and artifce In
order to depress values with the result
that many weak or timid holders have
been led to sell at a sacrifice. Fears
are entertained by many that railway
stocks and bonds have ceased to be a
safe investment because OF the hostile
attitude Of the public to the railway
companies and the danger that legis-
latures and commissions thruout the
country will reduce railway rates and
diminish the net earnings of the rail-
way companies. There is also a fear
that severe stringency in the money
market may be impending.
s.sI think these fears are greatly ex-
aggerated. The people of the United
States are not going to do injustice to
the railway companies in the long run
or pursue q course of action which
would surely prove ruinous to the peo-
pile themselves. Unjust and unreason-
able attacks by the sensational press
and by politicians against the railway
companies and against capital gener-
ally! do not represent the sober sense
q Of the people and will not prevail"
An international banker of promi-'
5nence said:
.sThe situation is serious and per-
licking because the public has lost
confidence in the railroads. There will
be renewal of confidence in the rail-
roads, Just as there was renewal of
confidence in the life insurance COM
panies. The public lost confidence in
the insurance companies In the insur
sance investigation, and the recent in
quiry by the interstate commerce COM
mission had much to do with the public
The best way to restore public con-
fidence in the railroads is to assist the
president in plans for governmental SUI
pervision.
"The great objection to legislative
action against the railroads is found
not in the national administration but
In various state administrations. A
broad, comprehensive plan Of national
supervision would do away with a
great deal Of restrictive legislative ac-
ton OF individual states. The results
would be that the public would regain
confidence in the railroads and the ex-
quotations of the railroads for private
advantage would cease"
R. b. Van Cortlandt of Keane, Van
Cortlandt & Co., said:
ut is scarcely necessary to discuss
the causes of this break, more than to
recognize the overextension of credit
that has characterized the financial
transactions here and elsewhere. Con-
ditions such as we have seen cannot
be continued indefinitely, and the long
er the reaction is delayed the more
severe it will be when it arrives. For
the last two years sound banking con-
ilitions have not been maintained, and
it was inevitable that we should at
some time suffer the illness that has
found its height in the fever of the
last few days These underlying con-
ditions are not changed by recogni-
ton of the sentimental considerations