The morning Astorian. [volume] (Astoria, Oregon) 1899-1930, 1907-12-31
TAFT'S GREAT SPEECH.
Continued from Page u

embark in new enterprises. however th,
capital fails them and disaster comes,
For eight or nine months past Their
were many indications that the loanabl,
capital OF the world was near exhaust
ion. This result was brought about moi
only by the enormous expansion OF bust
ness plants and business investment
which could rot be readily converted
but also by the waste OF capital in eN'
tavaganee OF living and by the Spanish
War. the Boer War and the Russia
and Japanese War and in such cata.
trophies as Baltimore and san Francisco,
ut came impossible for the soundest
railroads and other enterprises to borrow
money for new construction or recon.
struction. The condition was not con.
fined to this country. but extended the
world over and was made manifest in
the countries OF Europe even before il
was felt here. Secondly. the conclusion
cannot be avoided that the revelations
of irregularities, breaches OF trust, stock
jobbing, over.issues OF stock. violation
of laws and lack OF rigid state or nation.
al supervision in the management Of
some OF our largest insurance companies,
railroad companies. traction companies
and financial corporations. shocked in|
vestors and made them withhold what
little loanable capital remained avail.
able Such disclosures had more effect
probably abroad than they had here, be.
cause here, I'VE were able TO make dis.
tinctions while there at remote dis
tance the revelations created distrnst
In our whole business fabric.
when, therefore, two or three institu.
tions, banks and trust companies, sup.
posed to be solid were found to have
their capital impaired BY stock jobbing
of their officers, the public were easily
frightened and the run on banks, began.
The question than became not one OF
loanable capital, but of actual money
to be used in the transaction OF the day
a very different question. though, OF
course, closely related.
ut would seem that our systef oc cur
rency is not arranged SO as to permit
its volume to be increased temporarily
to counteract the sudden drain OF money
by the boarding in panic 1t is pro.
bable that the stringency which reached
it height on that dark day of Oct. "a.
might in part have been alleviated had
we had currency which could auto.
matically enlarge itself to meet the tre
mendous demand OF day or week or
a month while public confidence was be-
ing restored The national administra-
tion. together with many of the large
capitalists Of New York and elsewhere,
put their shoulders under the load and
by various devices of an unusual char
acter. have brought about the present
condition of gradually increasing confid.
ehce. ...r .......
"The injurious consequences to follow
from this panic are not likely to be so
long drawn out or to result in such de-
preston as the panic Of 1893 or the pan.
ic of 1873 and this for the reason that
the condition of the country makes 1t
so much easier to resume business grad
ually to accumulate capital and to them
renew the enterprises which had to be
abandoned for lack of it. In the first
place we have a solid currency with no
now OF departure from the
gold standard In 1893 the pressure for
free silver was on, and the threat OF
national repudiation had much to do
with the delay in the return to prosper.
ous times. Our government finances
row are in excellent condition and we
nave a larger surplus. Our farming
communities in the West to-day are not
lnder the weight of mortgages and Of
lebt which distressed them in 1893 and
1873. They are prosperous and wealthy.
"Again, the railroads, which make up
large part of the wealth. of this coun-