The Glenwood post., 1908-03-21
LA toilette
on MORGAN
WESTERN SENATOR SCORES
GREAT FINANciERs AND STAN
DARD OIL BANKS.
FIGHTS ALDRICH BILL
DECLARES 1T is DRAWN IN INTER
EST OF MORGAN AND STAN
DARD OIL.

What | have to say is
made more pertinent. if possible. by
the action taken during the day with
respect to the Aldrich bill" said Mr..
La Toilette in beginning his speech in
the Senate on the currency bill Tues
day. His reference was to the amend
ments made TO the bill by the commit
tee on finance.
Speaking of the Morgan and Stan
dard Oil banks, and looking across the
chamber toward Senator Aldrch Mr.
La Toilette declared:
Il will show the connection OF these
great groups with the bill pending
here, Notwithstanding the dexterous
withdrawal of the proposition to incor-
porate railway bonds in the bill
There We're no commercial reasons
for panic said Mr.. La Toilette.
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 ii 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. | believe that it
need only to be followed step by step
to show that 1t was planned and exc
cuted insofar as such a proceeding is
subject to control after one in mo-
ton. Such statement without sup
port in facts warranting ii would de-
serve condemnation To withhold such
statement, to shrink from plain
speech setting forth the facts insofar
as they can be uncovered is in the
discussion of this legislation Il plain
public duty"
He recounted in vivid language his
view of the events of October 24th.
when Wall street was in the throes OF
the currency stringency.
For the first time since the panic
began, II: 80 a. M O'Clock arrived and
everybody on the floor of the Stock
Exchange was wildly seeking money at
any price. Interest rates which had
for several days ranged from twenty TO
fifty rcr cent. began to climb higher.
Settlement must be made be made be-
fore 3 O'Clock. Money must be forth
coming or the close of the business day
would see Wall street mass of ruins
and banks and trust companies on The
brink of collapse.
How perfect the stage setting How
real 1t all seemed But back OF The
scenes Morgan and Stillman were in
conference. They had made their
presentation at Washington They
knew when the next installment OF aid
would reach New York. They knew
Just how much it would be. They
awaited its arrival and based there
upon 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 mar
ket became terrific. Still they waited.
Union Pacific declined 1Ok 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
ten per cent.
And SO ended the panic
When once the government invites
the national banks of the country to
invest in railroad bonds for the patri-
otic purpose of averting financial disas-
ter these railway bonds will become
sacred paper" he said. The good
faith of the country will be pledged to
defeat any legislation that suggests "a
disturbance of the four per cent. divi-
dend upon the stocks. The senator
from Rhode Island will be heard in sol
emn warning. He will be told that the
bonds were bought by the banks not to
m lSa hut N no hold in
ness to protect the credit and com
merce of the country; that bond mar
kets are easily disturbed; that such Sc
curity is delicate and sensitive; that
legislation menacing dividends even
upon grossly watered stocks would
alarm the holders of these bonds and
force them upon a falling market at
great sacrifice, possibly producing
panic and leaving the banks but partly
prepared to take out emergency cur
rency."