Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1908-01-13

ration, primarily ascribeS the recent
panic to exposure of the condition and
management of certain banks. In ac-
counting for the violence of the panic
he says:
THE volume of business had been
greater than the supply of money. The
imperfection Of our financial system
had a large influence. People had
been unreasonablyN extravagant in per-
sonal matters and also in business
methods and expenditures. More or
less mismanagement In large affairs
was being exposed. and investors were
surprised and frightened"
AS to the question whether the re-
sultant depression will be long or
short, he says:
1T requires courage to make public
an opinion in regard to the future. The
depression should not be long cOntin-
ued There ought to be noticeable
improvement in business before the
middle of 1908 and decided improve
ment before the end of the year."
or the encouraging factors in the
financial and Industrial future he says:
1.-The wealth of the country Is great
and Is growing greater. The necessi-
ties of the country are constantly in
creasing. There are both ability and
disposition to spend money when conf
dence is restored. The experiences we
have been passing through during the
last year will ultimately be of great
benefit. Business will be done Oh q
higher plane. Every one will be more
disposed to recognize the rights and
| interests of others. There will be a
| better observance of the laws. The
people generally will be less eXtrava-
prosperity of the future is fully dem.
onstrated by the facts and figures OF
| the past
OF the changes needed to prevent a
| recurrence of the panic Judge Gary
suggests:
| I'VE should have more elasticity IN
our banking system. think the best
suggestion yet made is a central bank
| not for commercial purposes. but as q
depository of the surplus funds of ma
| tional banks and perhaps for the issue
of bills"
| Melville E. Ingalls,, chairman OF the
| Cleveland Cincinnati. Chicago and st
Louis railroad, says:
THE panic of 1907 was caused pri
marily by the overtrading of our PEG
| pie and the large expenditures by cor
| porations Of all classes Its violence
| was caused by the fact that corpora
tons had been so abused by people II
| high authority that the ordinary mar
had lost all confidence in them, an(
therefore when the trouble first brok'
out the common people believed that
was due to dishonesty and rascalit,
and that there was nothing good. ant
therefore they FASTENED TO take thei
money out of the banks and keep /
where they thought they would surel.
find 1t.
II should think that the disease. be
ing so severe. would run It's cours
quickly and that there should not b
a long period of depression. Still,
doubt If we shall have good times Ut
III we have another crop in sight an
also get far enough 10 see into tb
next presidential election and lear
what we are going to have-whethe
the persistent attacks on the inteSrit
and credit Of corporations are to b
kept up.
The factors of encouragement ar
that there have been SO few failure
and the financial interests of the coui
try have acted SO well together TO sto
the spread Of the trouble
Lyman ]. Gage, ex-secretary of til
treasury. in suggesting methods fC
preventing future panics says:
Banks should be compelled to NEE
their contract obligations to pay on d.
mand or he wound up. Before this L
present impossible condition is exac
cd. however. legal facilities should /
provided by which the power no
lacking should he supplied or reel
| forced"