Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1908-01-24
PAST AND FUTURE
OF OUR VI !. FINANCES \
Nations Panic Partly Due to Ex.
travagance, Says Financier.
WHAT ECONOMY WILL DO.

Americans Can Save 1851 ,250 900
In a Year-Judge Gary Predicts Inn
provement Seon-Business to 30
Done on Higher Plane.
Extravaganza on the part Of the
whole nation and failure to punish or
remove from their places Of trust the
men who have been shown to be Of
tenders against the laws are two Of
the causes for the recent financial
panic given by Stuyvesant Fish in the
annual financial review published the
other day by the New York Post.
which also gives interesting predic-
lions by men Of great prominence in
business and financial matters as to
the outlook for 1908 Mr.. Fish says:
''When our $4,000, 900 people do econ
omize and really save something daily
the figures will roll up with amazing
rapidity, for If each Of them should
save on an average so small q sum as
8 cents day 1t will aggregate $751;
250,OO0 in a year"
Tracing the causes Of the panic, Mr.,
Fish says that whenever state or fed
eral inquiries have been made In in
suranee, railroads or local traction
matters corruption has been unearthed
and FIVE or six well known names have
always cropped up. he adds:
'"The guilty parties show no signs of
repentance, much less Of making resti-
tuition. Nor have the chief offenders
resigned or been removed from the
positions of trust and confidence which
they have SO greatly and frequently
abused to their own profit and to the
loss Of their stockholders. In the light
of these and similar facts, it is strange
that the large deposits in our own
savings banks and In the national
banks III the west and the vast amount
of money actually held by the people,
especially the foreigners among us,
are not seeking investment In cor
porate securities despite the excessive
~ low prices now prevailing"
Continuing, Mr.. Fish says regarding
the future:
"Atsth risk OF seeming pessimistic
cannot help thinking that as the prime
cause Of our present troubles has not
been removed we must undergo Pc
Rod Of depression and curtailment in
business and again learn in the hard
school Of adversely the lesson of econ
| omy. Nor in the absence Of restora-
ton of confidence In corporate manage
ment is 1t possible to say when a
change for the better will come about.
LET us hope we are nearing a pc
riod when time and an awakened pub
lie conscience will remove from power
some of those who have been the
chief sinners, and economy will re-
store the losses created by the waste,
the extravaganza and the wickedness
| Of the last few years."
Ex-Judge Gilbert II. Gary, directing
head of the United States Steel corpo-
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 large influence People had
been unreasonably extravagant In per.
/ sonal matters and also In business
| methods and expenditures: More OF
less mismanagemeht In large affairs
was being exposed, and investors were
surprised and frightened
AS to the question whether the re-
sultant depression will be long OF
short, he says:
1T requires courage to make public
an opinion In regard to the future. The
depression should not be long contin.
ned. There ought to be noticeable
Improvement in business before the
middle Of 1908 and decided improve
ment before the end of the year."
OF the encouraging factors in the
financial and industrial future he says
'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 ON 9
higher plane. Every one will be more
disposed to recognize the rights and
| interests Of others. There will be &
n better observance Of the laws. Tht
/ people generally will be less extrava
CANT for time at least. The great
prosperity Of the future is fully dem
onstrated by the facts and figures o.
the past"
/ OF the changes needed to prevent /,
recurrence Of the panic Judge Gar!
i suggests:
1--WE should have more elasticity II
our banking system. I think the bes
4 suggestion yet made is a central bank
not for commercial purposes. but as {
i depository OF the surplus funds OF ma
\ tional banks and perhaps for the issu'
Il of. Bills ~
Il Melville q. Ingalls,, chairman of tn
4 Cleveland, Cincinnati. Chicago and st
I Louis railroad, says:
THE panic Of 1907 was caused pri
marily by the overtrading Of our pee