Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-12-06

sidered 1t very significant that middle
class families and weli-to-do people wer'
not discharging their servants because
they had not suffered from the depression
in stocks.
That is the testimony everywhere; that
is why they call 1t rich mans panic
There has been no falling off in the values
of anything but stocks and bonds; Ihe
prices of real estate keep up and those of
every commodity. You can't buy food
or drink or clothing any cheaper, although
the newspapers announce a reduction in
the cost of dressed beef. pork and other
meats. And there is mighty little sym
pathy wasted upon the gamblers of Wall
street. A comparatively small number
of other classes whose money was de-
posted in banks that have suspended are
suffering. but their losses are insignificant
in contrast with those that have occurred
in previous panics.
Millionaires Mortgaging Homes.
1t is the plutocrats who have been walk
ing the floor this time; 1t is the million
aires who have been mortgaging their
houses. and the total value of mortgages
recorded for the month of November this
year will surpass that of any similar
period in all history. Several of the
finest houses on 9TH avenue have been
offered as security for loans, and very
large ones. Harry Payne Whitney. for
example. borrowed half million dollars
on the family residence, which Is one of
the show places of New York. and several
other mortgages for similar amounts hav
been filed during the last two or three
weeks. 1t was absolutely necessary for
these rich men to raise money to cover
their margins or make good their loans
at the banks and stocks would not be ac-
copied. In many cases securities which
had been used as collateral have shrunk
in value 50 much that they did not cover
the loans. and the banks called for more
securities or cash, which could not be
obtained anywhere except from the big in
surance companies on gilt-edge mortgages
A certain banker in this town was COM
PEELED to mortgage his house, which, by
the way, belonged to his wife, for half a
million dollars and produce the money
within business hours of the same~day. He
got it from one of the insurance COM
panies without the slightest difficulty, be-
cause his residence Is as well known as
Trinity Church. and it's value Is three or
four times the amount of the mortgage;
but he had to wait his turn. and several
other applicants were before him who
were in a similar predicament. If he had
not produced the money that day the
bank where he had large loan would
have sold the collateral he deposited. and
that consisted of stock in the New York
Central railroad. which Is now quoted 30
per cent lower than it was few weeks
ago. The depreciation of securities has
left nearly every loan in every bank par
tally unsecured.
Between fifty and sixty millions of dol
lars has been loaned by the three big life
insurance companies with the policies of
their own patrons as security. Many Dor
rowers had nothing else to offer. The in
surance companies were very glad to &C
cept such collateral because 1t re~uced
the amount of their obligations and
brought them an interest upon their own
money. There Is a clause in many policies
providing for such contingencies, which
happened to be fortunate thing for a
great many people The loan committees
of the insurance companies sat night an.
day. They were in almost continuous ses-
sion, considering applications for loans.
Deaths From Heart Disease.
One of the most remarkable conse-
quences of the panic is the largest num-
Der Of deaths from heart disease. The
mortality statistics for October and No
vember will show an astonishing increase
in deaths from this cause. The total. l
am told, will be double, and some predict
it will be treble that of any other previous
period of the same length. The shock of
financial losses, the anxiety. the sleep
less nights and the days of excitement
have been terrible strain upon every mar
who has to do with stocks and bonds and
weak brains and weak livers have stopped
working. AL financial panics are fol-
lowed by an increase in the number of
deaths from apoplexy, heart failure and
similar causes, but the health officers say
that such cases were never SO numerous
las now.
Doctors and lawyers have suffered Incl
dentally, although they were not 'in the
market" because they were unable to col
lect bills from their rich clients. 1t is
customary for professional men 10 render
| their accounts quarterly, in April. July
| October and January, but nobody paid
| bills in October and November ,his yeai
| unless they were actually compelled to dc
so. A friend of mine in one of the
banks tells me that several of its deposit
| ors who are doctors and lawyers came In
| to borrow money to pay their household
expenses. He knew of well-known physi
clans who were obliged to mortgage rea
estate for money to buy their daily bread
At the same time it is astonishing thai
| so small number Of failures occurred.
| If you will examine the reports of the
commercial agencies you will notice thai
| the number of failures and the amount
of money involved do not Justify the ap.
prehension or the excitement. And LAT
| is another proof of the prosperity of the
country and the stability Of our financial
institutions.