The Washington herald., 1907-08-15
BANKERS OPTIMISTIC
Money for Investment Is
Still Plentiful.
SITUATION TENSE IN EUROPE
London, Paris, and RerIin Markets
as Uneasy as that of New York.
Business Interests Bound to Suffer
for Misdeeds of Money kings-Much
Depends on Presidents Policy.

Talks yesterday with a number of
the most prominent bankers In Wash
ington developed some interesting facts
relative to the money situation, as ii
affects business in this city.
These talks grew out Of complaints
heard from a few that some business men
are finding It difficult 10 obtain loans
with which 20 carry on their affairs
II was stated that money while not
exactly plentiful, is obtainable from the
banks in such quantities as are needful.
and at rates not considered exorbitant.
One banker said that all the needs OF
depositors and patrons of his bank were
being taken care OF, and he had not
heard Of an instance where a business
man Of good credit had been turned
away. when he presented good security
for his loans.
Bankers Are Optimistic.
The president Of one Of the national
banks said there was a big call for money
this month. Business, he said, was duh.
and many business men were borrowing
largely TO tide them over until fall. This
official. however, said he could not see
that the situation, locally, was any worse
than Is usually the case in August. Pos
sibly there was more outlay for improve
ments and what might be called enlarge
Tnents than in former years, but so far as
the clients Of his bank were concerned,
they were being supplied with all the
money required in legitimate enterprise.
He said his bank was not lending for
speculative purposes. and had turned
down some requests for loans Of this
character.
Bankers in general were most optim-
lstic.
Good Credit Is All.
Another bank official interviewed stated
that nobody with good credit or good Sc
curity was being turned away. He said
there were some men in business in
Washington with small capital who in
The summer time want more money than
they ought to have with the resources
ct command. Such persons probably are
finding it difficult to obtain such loans
as they desire. but he declared that the
banks and the trust companies were all
making big loans at rates that have reg
ularly prevailed through the times Of
prosperity.
The fact cannot be lost sight Of that in
Great Britain, France, Germany. and
Belgium, conditions exist which may be
called a financial crisis, without any
stretch of Imagination. In this country
fnaRcieTs talk as If the chief pressure
were here, and declaim that it is ali due
70 the attack Of the government upon
great corporate interests. It is a fact,
however, that the money crisis is as
acute in all the European centers as in
New York, Boston. Philadelphia. and Chi
cago It cannot be that the onslaught
against corporations here in any way af-
fects the situation abroad. and yet there
is the same trouble there.
An International Crisis.
This fact led the Wall Street Journal
yesterday 10 remark as follows:
The financial crisis is an international
crisis. It is not confined to the United
States. and as a matter Of fact is more
acute abroad than here. The policy of the
administration toward the corporations in
the United States has had. nothing 10 do
with the raising Of interest abroad with
the depression in c0nsols and other for
eign government bonds, and with the col
lapse of the foreign stock markets. The
great fundamental and universal fact of
the financial situation at this time is the
lack Of capital with which to conduct the
enterprises Of the world.
Causes of the StrinEency.
Many things have contributed to bring
about this international situation. The
wastes of war and disaster. the wastes of
extravaganza, the wastes of the specula-
ton in real estate, and in securities, to-
gether with the tremendous rapidity with
which the work Of developing the re-
sources of the world has been going on
for the last ten years have. coupled with
the stimulus of the great gold produc-
ton, brought about this situation The
remedy for this is not to be found at
Washington, or at London, or at Berlin, or
at Paris Governments may aid or may
check the work OF readjustment, but that
work must be performed by the markets
themselves, which are now in fair way
of doing so"
Finds Rockefeller Wrong.
The Journal then discusses the relation
of the administration to the situation
here. quoting the words of Mr.. Rookie
Teller. in which he declared that the
policy Of the administration means dis
aster to the country, financial depression.
and financial chaos" The Journal takes
issue with the Standard oil magnate.
setting forth that the policy of the ad-
ministration has not changed within five
years, but has been steadily and con-
sistently pursued. Il is admitted that
the pursuit of this policy may be nearer
results than il was I'VE years ago. but
it scouts the idea that this policy Of
the President, which the Journal reminds
its readers is the policy Of the people.
is dangerous. and declares that If MT
Roosevelt had not carried It out weaker
and more dangerous instrument would
have been forced 10 do so at the be-
hests OF public opinion
After a careful and conservative review
% the situation. the Journal concludes
that while Il cannot be expected that
the President should change his policy.
he should do all in his power to amelio-
rate the blow which must inevitably fan
upon business interests for the misdeeds
of the predatory heads OF the great cor
poratiOns.
ROoseveIts ''HiEhest Duty"
1t would seem as il it were now the
highest duty Of the President and his
advisers to do everything they can to
allay excitement to stamp out hysteria.
and to focus the attention Of the people
upon the fundamental requiremenr-the
maintenance OF order and credit" SAYS
the Journal, in summing up the situation.
Complaints of stringency in the money
market are not treated seriously by Treas
uTy Department officials They say there
is no sign OF distress in the financial sky,