The morning Astorian. [volume] (Astoria, Oregon) 1899-1930, 1907-12-31

by means OF receivers certificates dis
placing and destroying tha value Of vest
cd securities In order to put the rail
roads into en- income earning condition
Tho railroads today are In better physi'
cal condition than they have been in
their history, But few OF them have
recently been built into new territory, In
which business has TO be created by IN
Producing now population,
Again the balance of trade Is with
us We were about TO setth for the
hundred millions OF gold that we with.
drew from Europe In order to meet tho
demand for money In the markets In
New York, by the excess Of our exports
OVER our imports h the single month Of
October.
AN these things point to the probabi.
lity OF a restoration OF confidence and
after u proper liquidation and an indust.
rial depression OF some months. to u re.
sumption OF business on normal basis
Modern business IA conducted on u
system OF credit which in normal times
increase the facility with which the
work OF manufacture. production and
sale can bc carried gu thousand fold
beyond tho limit OF earlier days. and
enables a total OF many billions TO rst
on very small percentage OF actual
money passed. Every manufacturer
every merchant is, under modern eoudi.
tions. dependent in the successful con
duct OF hts business upon bank credits
extcnd,d at regular seasons, The banks
themselves in turn acquire the means OF
granting these credits largely from the
money Of their dcpositors, And In loan
ing their deposits, the banks rely on the
improbability that more than eeAain
part OF the deposits win be called for
at any one time. 4 lack OF public con
fiiencc In the banks creates q common
desire among iepositors to withdraw
their money. The fright which seises
the creditor, the depositor and leads him
to hoard his money, spreads like wild.
fire and Is an unreasoning and unreason.
able as the spirit OF mob. A run on
the hank ensues. The banks then call
on their debtors and the tremendous
structure depending upon credit tumbles,
Meantime men who properly count
themselves as milionairvs. who are hon.
cst, 90 servative. solid buinessmen, al
ways responding TO their obligations
find themselves rs helpless under such
n financial cataclysm rs they would be
in an earthquake,
Gradually reason resumes its sway.
but the injury to credit and the blow
which has been struck at the normal
business progress has been more or less
permanent. Values have shrunk. plans
for new and increased business enter
prises must be abandoned and liquidation |
lake place. The businessmen who have
10 stand the strain who have seen their |
'ondest hopes crushed mad have only
,een able to. come through the crisis
with the greatest effort and most sub
,tantial financial loss, are naturally sore
md depressed, They believe. and gcncr'
lily they are right, that this disaster
las come upon them without fault oi
heirs. IL is unjust to them. No matter
low many symptoms OF the coming
Toublcs there may have been, panics
Llways come with q shock, and o trc
nendous surprise and disappointment
md hardly is the panic over but fierce
discussion arises a. to the cause Of its
oming But various motives, editors
md public speakers rush TO the front to
asten upon something or someone the
for what has happened. /
t is entirely natural that in the condi-
ion OF mind, in which the suffering
business men are left by the great
train and trial, such suggestions should
cceive marked attention and that the
more definitely the personality scape
'oat can be fixed. the more pleasure II
ives the victims OF the catastrope.
This mental attitude of the business
ommunity which have described as
kelly to be found after every financial
'anic rs clearly present today. The
and political history of the
asst four years gives it's Importance, be. !
ause it offers to certain elements in
he business and political community
N exceptional opportunity. Let me in.
lite your attention to more history. II
> that of giant struggle between the
ational administration and certain
owerful combinations in the financial
yorld. These combinations for lack
etter name are called TRUSTS They
ngaged in different lines of manufac.
llre6 and nroduction hv aaaembliuoj