The semi-weekly messenger., 1907-08-30
gestion of the Guilford correspondent
will be pleasing to either party referr-
ed to.
REVIEW OF BUSINESS AND Fl
NANCIAL SITUATION

henry CleWs & GO. s commercial let
ter of last Saturday is a very interest
ing document 1t discusses the none
tary situation, its causes and the out
look for better conditions and Mr..
Rooseyelt's policies
Il declares that the shrinkage in
Wall street values has exceeded three
billion dollars, and of this it says:
This is largely due. not to President
Roosevelt's policy or his actions in
connection with corporations: for sim
1Iar disturbances have taken place in
London and elsewhere. English con-
soils, for instance. are lower today
than they have been in the history Of
the nation. AS a matter of fact, we
nave had in this country too much
prosperity for several years, causing
an OVERRIDING in all channels of work
construction and speculation. In other
words. there has been too much bus
inss for capital. credit and transporta-
ton. Values had become inflated, and
IN the meantime there were many evi-
dences Of corporate dishonesty which
shocked confidence by the revelations
that cropped out from time to time
1t declares Mr.. Rooseveits policy
was forced upon him by these develop
ments and that while the penalty now
being paid is bitter, the situation will
be sounder one in the end, and all
interests will be established on more
conservative basis. He says that those
who blame Mr.. Roosevelt for all our
troubles are in error; that actual con-
ditions are responsible, which are it
says:
Great prosperity has forced up-
on corporations larger amount of
business than theJ had the ability to
handle, hence the flooding of the mar
ket with securities to obtain the
means to meet the emergency and the
excessive issues from that source.
1t declares that, instead of opposing
the president, it would be better for
the corporation magnates and manag-
ers to fall in line and let him and the
public know they will obey the law that
there has been misunderstanding and
exaggerations as to the intention or
the government officials, which is on1y
to compel great corporations to re-
spect the law in the same manner as
the humblest citizen, and It saws thew
might as we'll accept the inevitable
because it is plain the president is not
going to change his policy.
Ihe letter urges what The Messen-
ger has already advocated: that when
these laws are violated by corporations
the officials responsible for the vio-
latlons should be punished and not
the innocent stockholders. IT saws.
Let the stockholders of the various
corporations join hands in demanding
the punishment of the guilty individ-
uals without causing the suffering OF
innocent investors and Mr.. Roosevelt
VIII accpet them as allies in his work
~ REFORM. Big money fines punish
the innocent stockholders and depre-
crate values, since they threaten con-
hscat1on: while Imprisonment of the
guilty would enhance values. lift orr
natlonal reputation to a higher plane
put out securities on a more reiable
and honest basis and restore conf
dence at home and abroad.
The letter closes with this resume of
the financial situation and advice to
those yho control the purse strings:'
The credit situation lust now is one
that calls for calm Judgment A wave
or hysterla has passed over the street
that should be overcome and beaten
down. The country is not on the
verge Of ruin. 1t is suffering from
various excesses and needs a period
or diminished activity for recupera-
uon. The liquidation cure is painful
but 1n6v1table> and when completed
the patient Should come out of it's
present state in good health. Those
who control the purse strings should
be calm and self-poised. giving assis-
tance when needed to concerns of
proved soundnesss and earning capac-
ity and rigidly withholding it from
those which are unstable and unduly
speculative. The stock market is still
in an unsettled condition 1t shows
fair rallying powers: but it is evident
that liquidation IS incomplete, and
those who are able to purchase gOod
stocks outright will undoubtedly be
able to pick them uD at prices that
will yield good profits to the perma-
nent holders. On all marginal trans
actions we advise great caution.
THE SOUTHERN DEMOCRACY