Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-10-28
DEALING ON MARGINS
Cause of the Recent Trouble
in Wall Street.
PANIC OF SPECTATORS
Unjust Denunciation of the Presi-
dent.
LAMENTATIONS OF GAMBLERS
Honest Depositors Frightened
Foreign Laws Against Corners
in Food Products.
LAMENTATIONS OF GAMBLERS
BY WILLIAM F. CURTIS.

'HNhSo htCoru-
NEW YORK October 20. 1907.
The trouble on Wall street during the
past week would never have occurred II
speculation on margins were not possible.
1t was entirely a gamblers panic, and
the crisis was caused by gamblers whose
confidence in the prices of the stocks
they held was shaken by the collapse OF
the copper conspiracy and the utterances
of the President. and who proceeded to
get rid of them at the best price possible.
This lack of confidence was communicated
to the innocent public. The gamblers
went around with long faces and de-
spondent utterances and predicted the
ruin of the world Without thinking of
He!nZe and his crowd they denounced the
President for destroying the private credit
OF the country and for disturbing conf
dence when he did nothing more than de-
clare that all dishonest men should be
punished. rich as we'll as poor.
The earning capacity of no establish
ment In the United States was affected;
the dividends of no corporation were re-
duced; there was no cessation of business
in any line of activity throughout the
entire country, and while the gamblers
were forcing down stocks on Wall street
the price of wheat and corn and other ag-
ricultural products was soaring to almost
umpire cedented figures. The runs on the
banks in New York were due directly to
the lamentations of the gamblers. who
frightened honest depositors and sent
them to draw out their deposits.
Dealing in Copper on Margins.
If Heinze and his crowd had not been
permitted to buy and sell copper on mar
gins the disaster that finally overcame
had been compelled to pay the full value
of every share of stock they bought. or II
they had been compelled TO exact the full
purchase price of every share of stock
they sold. there could have been no such
complications as those in which they be
came entangled and in which hundreds of
thousands of innocent holders of stock
in copper mines throughout the country
have been involved. If it had not bee n
for the collapse of the copper ring the
knickerbocher Trust Company would not
have been compelled to close its doors and
the panic on the stock exchange would
not have occurred. And yet the President
of the United States IS held responsible
for all thai has happened because he de
clared In a public speech at Nashville that
dishonest rich men should be punished
There was a singing editorial in one of
the New York papers the other day which
held the President responsible for the fall
III SolthS ana the 1dlIuTc OF several prOleS-
sionaI gamblers, and it closed with the
ejaculation:
Hail Caesar! We who are about to
bust salute thee
These cataclysms will occur at inter-
walls long as people are permitted to
other things on margins, but there does
not Seem to be any way of preventing
them.
The French Prohibition.
The laws of France prohibit gambling
in government securities. Section 422 of
the French penal code defines gambling
any agreement to sell or deliver gov
eminent securities which the seller cannot
prove to have been in his possession at
the time of the agreement" The pen
atty Is imprisonment for not less than
two months nor more than two years,
with d fine of not less than 1000 francs
nor more than 20 go francs for each Of
Tense. and after the period of imprison-
ment the offender may be placed under
surveillance for not less than five and
not more than ten years, and be re-
quired to report all his financial trans
actions to the government
Section il9 Of the French penal code pro
hibits corners and all attempts to con-
troll the supply or affect the prices of
grain. -four. bread. wine and all other
kinds of food and beverages. Amy per
son or persons who individually, or in
combination, attempt to advance or de-
press the prices Of such commodities above
or below the value determined by nat
uraI and free commercial competition,
will be punished by Imprisonment for
not less than one month and not more
than one year and pay fine or not less
than 5000 and not more than 10000
francs And after serving their terms
of Imprisonment the offenders are placed
under police surveillance for not less than
two years or more than five years dur
ing which time they are required to re-
port all their transactions to the govern
ment.