The Washington herald., 1907-10-24
THURSDAY. OCTOBER "a. 1901.
Reform in the House Of wealth

President Roosevelt in his Nashville
speech spoke of the duty of men of great
means TO use their influence in stopping
the processes of gaining wealth by sue
Cessful dishonesty. While he was speak
ing, almost, some Of the most eminent
Inanciers IN the country were engaged
in bringing order out of the financial
chaos wrought by dishonest and unsound
banking, and In reforming the methods
Of group OF INSCRIPTIONS spectators
who had invaded metropolitan banking
circles. A thorough hOuse-cleaning was
found requisite 10 the maintenance OF
financial stability, and it has been ec-
Complshed at a cost that Will be amply
repaid in the future. Now that il is all
over, We realize that an immense re-
formatory task has been successfully be
gun by private initiative. and we see.
also, that there are powerful forces max
ing for honesty and the square deal right
in the heart Of wall street itself.
Perhaps one Of the most remarkable
features Of the financial crisis is that the
crash Of a great banking house should
process OF publication of the banking
community. Singular as it may seem.
there is even a note Of rejoicing that
some Of the spectators. whose per
formances threatened the delicate fabric
OF credit should have come 20 grief. II
IS everywhere felt that if these fnanciers
have lost power and wealth al one
stroke, they have met only what they
richly deserved. There is a belief that
now. that the rogues have been got rid
of. all honest men will get their dues.
The New York Evening Post reports
hundreds Ct business men as saying that
1T looks as If legitimate business now
would have a chance 10 get banking ac-
commodation." The fact is that the re-
Sources Of many banks are freer Of ac-
cess to the promoter and the speculator
than TO the merchant and manufacturer
engaged in honorable remunerative en-
teTprise. Control of these banks by
groups Of speculative interests has made
the matter doubly worse. When the pinch
OF tight money comes, as the Evening
Post says:
suffer. Speculation IS left untouched as long as
possible Il is the merchant the manufacru7er
whom the president Of the hank sends for and
says that he is soTy. but that he is compeled
70 ask him TO cut down the line that the bank
Is carrying for him by one-thiri OF one-half. And
Interest on loans is marked up, even for old Gus
toners But all the time. there is too much reason
70 believe, the resources Of these Controlled banks
NsTe being put as freely as poSsibe-rerians
more freely than the law permits-at the disDosal
o. Promoters and Spectators In other words 10
make II easy for them. legitimate business has
found 1t made terribly hard for IT, The hold Of
stock gamblers upon banks has really been a erir
upon the throat Of business What many people
have vaguely felt throughout the summer has now
been brought home TO them with all the force OF
a demonstration; spectators through their owner.
ship Of banks, have been squeezing blood from The
business men 0f this city,
The banking methods here described
were as badly in need of reform as cor
rupt corporate practices; they constituted
one Of the crying evils of the financial
world. That beginning has been made
in roofing them out is evidence of a
power OF rejuvenation and reforma ton
IN the business and financial communitv
that ought TO be invoked more often than
It IS Governments have no power to
accomplish what has been done IN New
York within the last few days, and Pres
ident Roosevelt's appeal 10 men of wealth
TO back up rational movements for reform
comes opDortunely at moment when
such men have shown in a very practical
Way what can be effected by concerted
action for the betterment Of corporate
and financial methods.