The sun., 1907-11-02
NO BUSINESS PANEC.
Rut Credit Has Been shaken by IntemDerAto
Tank m a HiKh OuarteP

To TIM EDITOR or THR sUN-Sir: It In
unfortunate for the truth Of history that not
one Of the men who understand the recent
financial scare and its causes has been bold
enough to tell how IL happened.
Financial and business panics always arise
from natural causes. but these causes may
be imaginary as well as real. so delicate is
the fabric Of confidence on which banking
and hnanciering rest that an imaginary cause
IL as potent for evil a. a real one.
At tho present time the business interests
OF the country are In a healthy condition
Crops have been abundant and prices are
good. 90, that the farmers were never an well
on as they are now. In manufacturing our
inventors have led the world. and we have
an advantage that Overbalances the handi-
cap OF an unrcasonably high tariff. Our
factories are therefore running at full time
and our exports Of goods are large. There
IL no evidence OF a business panic. and there
will be none II our business men get even half
a chance.
Taken as &whOle. banking institutions were
never IN better shape. Mismanagement OF
funds has grown less with the perfection Of
the banking system. While some banks have
loaned more to favorite or influential bOr-
rOwers than was consistent with the best
interest OF other borrowers. not a case has
been disclosed where the interest OF deposit
tors was jeOpardized. No bank is in posi-
tiOn TO pay In full every depOsitOr II he should
walk up and demand his money. but It ought
to be understood that banks cannot be 80
conducted as to satisfy all demands at once.
No such demand will ever be made on bank
when the public mind is normal Then what
has been the cause Of this abnormal and
baseless disturbance2 Primarily the inter-
views and speeches OF President Roosevelt.
His incessant talk has wrought up the public
mind to such fever Of excitement that the
average man began 90 think that the whole
business world was in a rotten condition.
So when the Heinze trouble arose the shallow
and thOughtless rushed to the banks to get
their money. Half a dozen criminal prosecu-
tiOns quietly conducted would have done
much to improve the business situation. It
most certainly was not necessary to sander
the whole community.
Not only have our banks and financial
institutions been ably and honestly managed.
but the same can be truthfuly said. speaking
generally. OF our railroads and the great indus
trial institutions. We have i'm this country
to-day the highest standard OF commercial
ethics that any country In the world can
boast, and our standard is higher to-day
than ever. We expel a man from the United
States Senate for an act that would not be
criticised in a member OF the British House
OF Lords. One-flfth OF the members OF the
House OF Commons are serving on boards
ment to their personal and financial advan-
tage. The President il a historian and knows
these things. and he knows how much sOunder
our financial institutions are to-day than at
any time in the past. II he must chatter.
for heavens sake let him talk about the things
that will help the public interest.
Money is safer in bank than in any other
place Of deposit. People who draw their
cash and take it home will suffer a percentage
Of loss much greater than ever comes to those
who leave IL on deposit. Losses by theft. by
fire and by carelessness amount to more
than a hundred dollars for each dollar lost
in a bank. That is about the record for the
last thirty years.
Whenever you hear group Of men dis
Cussing the situation. the burden Of their
song is commercial dishonesty. They have
taken the Presidents word for It, and they
actually believe that they live in the most
corrupt age Of the most corrupt country in
the world. instead of In the best age Of the
best country on earth.
All this comes from having mt the head Of
the nation a man who plays politics for pOpu-
larity. and 40 far has shown himself the
shrewdest politician Of the age. but at the
same time less Of n patriot than any man
who has ever been hOnored by election to
the high Office Of President. l.. A. l..
New YORK. November I.