The Washington herald., 1907-12-31

Boston, Dec. 3o.-In the opinion CT those
who heard-the members Of the Boston
Merchants Association-secretary OF War
William II. Taft made the speech Of
his life in this city tonight
II was a strong speeCr=z manly speech.
and, although it perhaps disappointed
some. in that no reference was made 70
the secretary's Presidential aspirations,
il suficed TO show his views CT those
weighty affairs which concern the ma
ton.
The speech contained no grandiloQuent
flights OF language; no verbose conglom-
Grafton Of mere words: no effort TO i'm
press by forensic fnesse. Instead. it was
renchant. clean-cut, direct exposition
Of the thoughts Of the man.
Secretary Taft thoroughly upheld the
policies Of the administration. the while
declaring himself conservative. He said.
further. that the Roosevelt dogma must
be carried on. If the country hopes 10
CLEAN the best from all Of its vast re-
sources. He declared himself in favor
/ OF the rate Biz. Of the prosecution OF
trade combinations, and - punishment
of the offenders against the Federal laws.
ne talked Of panic bUt az a thing Of the
pas--a thing not to be dreaded Hs
showed why there should be no fear.
Secretary Taft's speech.
Secretary Taft spoke as follows:
7 am glad 20 be here For more than
| two years I have been trying 70 accept
your kind invitation. do not feel strange
( in this New England company. Ny fathe-
was born in Vermont Ny mother was
/ born in Boston; my two grandfathers
were born in Mendon. Worcester County;
much OF my boyhood was spent in Mill
| bury. and was educated az Yale. While
I cannot claim 10 be one OF you, Ike 10
boast that have enjoyed the good in
/ hUence Of the same traditions.
I had expected 10 talk 10 you about
/ the Philippines tonight That was one
Of the reasons why I accepted the in
vitation so lightly. II is a subject easy
for ne to talk about. II may oe Il IS
/ getting a little stale. For instance, I have,
found that one Of the best methods OF,
/ discourage my friends. the correspond
ents of the press IN Washington. from
pursuing embarrassing inquiries into other.
matters. is 10 insist On discussing with
them for publication interesting phases OF
| the Philippines situation. They leave
I forthwith But had supposed that.
/ however dead the islands might be as a
I topic inviting discussion and attracting
| attention elsewhere, one could rouse some
! excitement over It still in Boston.
DodgeS the Philippines.
Il have been warned. however. that
here too there were subjects more alb.
sorbing. at least for business men So
when 1 was honored by an invitation for
Thls morning 10 address the ministers Of
BOstOl. whose profession carries them
naturally in a consideration OF other
worlds. 7 said my say in respect 10 the
] Philippines. and tEe-to-me-very absorbing
national problem. which I hope and be-
Iieve we are working out successfully. It
follows that for this company. I must
/ ind another subject
During the last three months, the
country has suffered from a severe
monetary panic. Even Yet the clearing
house certificates Iinger in your bank ex-
! changes as emphatic evidence Of its
I severity and Of the extreme measures
which had 10 be taken 70 avoid greater
disaster. Doubtless many Of my hearers
( have not yet recovered from the intense
/ nervous strain and mental suffering TO
which they have been subjected since the
middle Of October. The panic has been
given a certain political bearing and i'm
/ portance. For this reason. 1 have selected
as my topic OF tonight:
.'.Tbe panic Of 1907; its causes. its
probable effects. and the relation 10 it
of the policies OF the national adminIs-
tratiOH.'
Cause OF the Panic.
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 a comparison OF the present
panic with previous pasics. and who are
entirely familiar wits the conditions
preceding all OF them, substantially
/ agree J,Don the causes. Panies and in
I SuSrrial depresSfons are the result OF
the characteristics Of human nuture,
which Taasifest themselves In business
as elsewhere.
The world generally has q certain
amount OF ioanable capital available
/ for new enterprises. or the enlarge
n,ent OF old ones. In periods OF pros
perity. this capital with the instru-
mentalities for enlarging its poten-
tiaIity By credits IS put into new en-
! terprises which are profitable. and the
/ increase in free capita goes on almost
in arithmeticaI progression After
time. however. expenses OF operation
and wages increase and the profit
from the new enterprises grows small
er The loanable capital gradually
Continued on Page :, Column 3.
/ Price. of All Kinds Lumber Tambling-
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