The Birmingham age-herald., 1907-12-15

One of the strong grounds for the advocacy of a central bank under gov ernment auspices, modelled after that of Great Britain or Germany, is that it will safeguard the country from the possible danger of money market ma nipulation by any conspiracy of very rich men who might be able to obtain control Of formidable sums of cash. Events of recent occurrence are an 1 object lesson of what might be done In this regard Very late history has shown that there was enough money in the hands of small coterie of wealthy men to have created a panic infinitely more murderous than anything yet seen. There are half dozen men now on the stage of affairs who could in combination lock up and with draw from circulation at any time they might so desire s2oO,00O000 to. $250. .O00, 900 of their own, thus precipitating busi- ness disaster without warning.
 As matter of fact group of men no larger In number than mentioned did actually convert stocks into cash to an aggregate amount of fully a quar- ter of billion dollars, which was availa ble for their use 60 days ago. If they had been real sure enough con- spirators of the kind seen in Wash ington visions it would have been en- tirely within their power to have brought ruin upon the country. Not being consprators they banded togeth- CT for the relief of a distressed situa- tion using their money for the most laudable of purposes and not to dis credit any administration or bring any body's policies into disrepute.
 It nevertheless remains clear that malevolent combinations for sinister purposes might very easily be formed xUt anoupb tn VVFap1x In or, engineer wild speculation at pleas ure as matters now stand. A great cen trsl bank, with proper powers, would make such a combination impossible.
 When the fog clears and people are able to get better view of what has happened and to connect events in proper sequence, 1t may even be charged that the man who came to the rescue when panicky conditions ruled really brought about the stringency by selling out their securities for cash and keeping 1t where they could get hold of it at will. The defense will, of course be raised, that they did this be- cause they saw the storm coming and prepared themselves to meet it. thereby observing the dictates of prudence, in- stead of being improperly influenced by desire to create disaster.
 Great GOHluSlUH tAlSlS tS lO lne III dustrial and business outlook. There is seemingly large amount of sub sfantial testimony that many import ant industries are tugging at the leash ready to resume full activity as soon as permitted. On the other side there is we'll defined skepticism. Special ists in the various industries are saying among themselyes, Yes, there is ap parentIy a lot of business in sight, but
 
 we have money to swing it. and how can people pay for our goods unless they can command the money. and how is there going to be money unless af- fairs resume natural position?"
 There seems to have been formed a circle and everybody is travelling around. around and around in tn cir specula tion as to what is going to hap pen. Doubtless the Fundamentals are continually hardening and conditions becoming more healthy. yet visible evil dences thereof are not overwhelmingly conclusive at the moment.
 Nine out of ten men you see ex- pect mercantile depression after the first of the year, and further slowing down and economizing wherever pos sible. A dropping off in railroad earn ings is one of the things looked for, accompanied by d letting off of men. Dividends unless earned. will not be paid because of the difficulty In get ting money.
 There will doubtless also be sud- den disappearance or reduction in many of those fascinating paper surpluses which have been adorning the annual reports of corporations--surp1u which represent triumphs of bookkeep- ing, but which have little more than junk heap value.
 The action of the Western Union Tel egraph company in substituting its stock dividend of 1 A per cent for the usual cash dividend may be the begin ming of a similar movement on the part of other corporations. At the pres