The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1907-12-01
PREVENTION VS.. CURE.

worth a pound of papic cure. The
truth of this statement becomes ap-
parent every day as the true causes
leading I'D to recent events that caus-
ed such a furry in the East and a
cores bonding feeling in the West
come to light. In the first place the
chief cause of the financial furry in
New York was caused by speculation,
which, as used in defining the bulk of
the operations on the New York stock
exchange, is but another term for
downright gambling.
Stock exchanges have their legitf-
mate place in the industrial structure
uf the country. In the case of stocks
and bonds of railroads and industrial
corporations they offer a ready means
Of determining the price of any secur-
iky and, moreover, they bring the buy
o. and seller together with the least
possible waste of time. In like man
ner grain, cotton and produce eX-
changes are of great value in offering
d ready means of determining the
price of those commodities. Such ex-
changes are always located in the
great cities offering the best facil-
fties for carrying on the business of
these various exchanges. Thus New
York as the greatest banking center
OF the country, is naturally the loca-
don of the greatest stock exchange in
America. Similarly, Chicago, the
greatest wheat exchange in America.
On all exchanges the most import
ant figures are the spectators and,
contrary to the idea of many we'll
meaning people, these spectators
play a useful and important part in
our national life. Their peculiar func-
ton Is to foresee the varying condi-
tons of our national business and, as
far as in their power lies. fix the
prices of stocks and bonds or commo-
dities accordingly. Those spectators
who foresee conditions correctly nat
urally gain their reward by making
money and those who are not so far
seeing, lose. In legitimate specula-
ton the Losses or gains of spectators
have nothing to do with us. What
one Spectator loses another gains
and no one but the spectators are af-
sected in the least.
Unfortunately American spectators
have overstepped their bounds and
have come to have the controlling
voice in the management of the great
banks of New York and to dictate the
policy of many of our greatest rail
roads and industrial corporations
This function was never meant fol
the speculator but for the more con
servative business man. Therefore
speculation today instead of being al
sbb and flow Of money between specu
lators has come to effect the bushes:
Of the entire country and render i
less secure. The whole fight waget
by our president has been to keel
these spectators within their Lawful
bounds and they, in turn, are fightin:
to maintain their present great power
The fight the president. backed by thu
people. has been waging has only snip
ped off some of the outlying branches
of the spectators power. Thei
main stronghold as yet remains TN
taken.
The SPECTATORS greatest power lie
in their control of the great banking
institutions OF New York, the grea
latitude they have in carrying Oh
stock market operations on slende
margins and their connections wit
men at the head OF the government
The money piled up in the New Yor
banks instead of being used for leg
innate transactions of business
turned into the whirlpool Of specule
ton, thus placing u heavy handica
on the business of the entire natior
For example. New York banks toda
owe the rest of the banks in the natio
the staggering sum of $500, 100000 an
by means of the clearing house cert
ficate plan are unjustly keeping a
that currency in their hands to aid tn
tottering structure reared by Wa
streets spectators. The retention {
this vast sum for speculative pu
poses is one of the chief reasons fC
the enormous contraction OF bushes
even here in the west.
The cure for this unjust condition {
affairs is easy to pronounce, but it wi
be harder than bringing the dead /
life to see it put into effect. In ii
first place it ought to be made a pen
Tertiary offense for any Spectator
sell short, that is. sell something /