Mountain Home maverick. [volume] (Mountain Home, Idaho) 1906-1911, 1907-11-21
THE FINANCIAL PANIC.

Most people say that panics are
brought about by people who be-
come frightened and in consequence
Withdraw the circulating medium
from the banks and deposit the
money in safety deposit boxes of
the country.
The money panic now raging is
far reaching in effect. 1t extends
from coast to coast and from the
Canadian border to the Gulf.
There is no hamlet in the United
States but what feels the effect and
in the larger cities it is hard to
tel in just what position the big
banks are.
They freely admit if the doors
were opened to the public run
would Immediately cnsue, and in
consequence they would be COM
PEELED to suspend. In the banks and
trust companies in the city of Sc
attic is deposited something over
sevcnty-fivc million dollars 1t
is estimated that 90 per cent of this
money is owned and was deposited
by purely western interests-that
it is money derived from western
resources and therefore should re-
main in the west and be used to
conduct the legitimate business of
the country at such time as this.
Some six months ago the banks
of that city entered into private
agreement among themselves that
they would not in any way assist
the real estate dealers and the real
estate interests of Seattle and vi
cinity. 1t was claimed by those
financial institutions that the Sc
attic real estate men were making
too much money, prices were being
doomed far beyond actual values.
The banks would not loan or assist
such transactions, but, on the other
hand, would loan their money to
the specializing, gambling interests
of Wall street, where in their
opinion it would be as safe as the
Rock of Giberaltar and could be
withdrawn upon five minutes no.
ticc. What is the result? The
farmers in Washington, Idaho and
Oregon must have money to move
their crops, the country banks in
these different farming commun-
tiles have deposited their money in
the banks of the larger citics-de-
nand is made by the country bank
upon the city bank. The crop vas
SO large and required so much
money to move it that the city bank
was compelled to make immediate
demand upon the New York ex-
change and to call in those gilt edge
to IL per cent New York call
loans. as the money was demanded
- ffOaAaN r'bNaO ~ Justly DClOilkCQ-
1t was the farmers money and had
NO business in New York. 1t was
where it should remain, but no, the
country bank had sent it to Port
land and Seattle for safe keeping
and the bankers there would not
loan it upon legitimate real estate
in their own country but through
their great financial foresight
sent it to New York as above
stated. Not a dollar of it can now
be had for legitimate uses in the
west The farmer is hampered in
moving his grain and the commits
sion houses in Portland and Seattle
are hampcred in their business.
The merchant cannot borrow a dol
lar and the small investor cannot
Withdraw a penny of his hard
earned savings Why? The wise
bankers of the west, the men with
keen insight into financial affairs,
the men whose judgment has here
tcforc been unqucstioned, loan theil
money to the gamblers and specu-
lators of Wall Street where it is
tied up in uncertain and unques-