The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1908-03-17
BLAMES SYSTEM
Senator La Toilette Closes De-
bate on Aldrich Bill
With a DenunciatiOn of the
Leaders of Finance.
STANDARD OIL co.
And Morgan Held Responsible
For the Panic.
Were No Commercial Reasons
for 1t, He Says.

that the recent financial stringency in
the country was brought about by the
influence Of STANDARD Or and J.
P1erpont Morgan, Senator LaF'ollette
Of Wisconsin. today in a speech prac-
tically closing the debate on the AID
rich currency bill entered upon a de-
nunciation of men high in the financial
world.
There were no commercial reasons
for a panic" said Mr.. LaFollette.
There were speculative, legislative and
political reasons why a panic might
serve special interests There were
business scores to settle. There was
legislation to be blocked and a cur
rency measure suited TO the system to
be secured. There was a third term to
be disposed of, and policies to be dis
credited.
"A panic came. I believe that it
needs only to be followed step by step
to show that it was planned and ex-
ecuted, insofar as such a proceeding
is subjected to control after once in
motion. Such a statement, without
support in facts warranting it, would
deserve condemnation. To withhold
such a statement to shrink from plain
speech setting forth the facts insofar
is they can be uncovered, is in the dis
cussion of this legislation plain pub
lie duty
He recounted in vivid language his
views of the events of October "a, when
Wall street was in the throeS OF the
currency stringency.
For the first time since the panic
began II 80 o'clock arrived and every
body on the floor Of the stock exchange
was wildly seeking money at any
price. Interest which had for several
days ranged from 20 to so per cent, be-
gan to climb higher. Settlement must
be made before o'clock. money must
be forthcoming or the close of the bus
mess day would see Wall street a mass
of ruins and banks and trust COM
panies on the brink of collapse.
Wall Streets Frenzy.
"How perfect the stage setting.
the scenes Morgan and Stiilman were
| in conference. They had made their
presentations at Washington. They
| knew when the next installment of
aid would reach New York. They
knew just how much it would be.
| They waited it's arrival and deposit.
| Thereupon they pooled an equal
amount and held 1T. Then they
| waited Interest rates scared Wall
| street was driven to a frenzy. Two
| O'Clock came and interest rates ran
to $50 per cent, the smashing of the
market became terrific Still they
| waited Union Pacific declined 10
and one-haf points; Northern Pacific
| and other stocks went down in like
proportion. Five minutes passed-ten
minutes past 2 O'Clock Then at
| precisely 2:15 the curtain went up
| with Morgan and Standard Oil in the
| center of the stage with money-real
money, twenty-five millions of money
| giving it away at 10 per cent.
| "'Oh uncrowned king.
| None but himself can be his parallel
Even to the duflest person standing
by,
| Who fastened still on him a wan
dering eye;
He seemed the master spirit OF the
land
"And so ended the panic.
"How beautifully it all worked out.
They had the whole country terror
| lied. They had the money of the
| depositor of banks of every state in
| the Union to the amount of $780,
| 100000, nearly all of which was in the
| vaults of the big bank groups. 1t
supplied big operators with money
with which to squeeze out investors
of the decline, taking the stock at am
| enormous profit. In this connection
the operations of Morgan and Stand
ard Oil furnish additional evidence of
the character of this panic. We have
| record proof of their utter contempt
for commercial interests, not only for
the country generally, but for legiti-
mate trade in New York city as we'll. %
| The Morgan and Standard Oil
| banks, he said, pursued in that criti-
cal moment the course of the specu-
| lating bankers.
They ministered" he said, ''to the
| needs Of Wall street quite deaf to the
| appeals of commerce. Their course
| was that Of men, however playing
purpose"