The morning Astorian. [volume] (Astoria, Oregon) 1899-1930, 1908-03-18
La Toilette on Fiuance
CONTINUED from pags y


condemnation. To withhold such q
statement, to shrink from plain speech
setting forth the facts insofar as they
can be uncovered is in the discussion
Of this legislation a plain public
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, 1850 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 ~
to 50 per cent began to climb higher.
Sentiment must be made before 3
o'clock. Money must be forthcoming
or the close of the business day would
see Wall street a mass of ruins and
banks and trust companies on the
bring of collapse.
How perfect the stage setting.
How real it all seemed. But back of
the scenes Morgan and Stillman we're
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
awaited its arrival and deposit. There
upon they pooled an equal amount
and held it. Then they waited. In
terest rates scared. Wall street was
driven to 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 ten and one
half points; Northern Pacific and
other stocks went down in like pro-
portion. Five minutes-passed ten
minutes past 2 o'clock, then at pre-
cisely 2:15 the curtain went up with
Morgan and Standard Oil in the CEN
ter of the stage with money-real
money, twenty-five millions OF mon
ey giving it away at 10 per cent.
"And so ended the panic.
How briefly it all worked out.
They had the whole country terror
ized. They had the money of the de-
posits of banks of every state in the
Union to the amount of five hundred
million, nearly all of which was in
the vaults of the big bank groups.
1t supplied big operators with money
to squeeze out investors and specula-
tors at the very bottom of the de-
cline, taking in the stock at an enor-
nous profit. In this connection the
operations of Morgan and Standard
Oil furnish additional evidence of
the character OF this panic. We have
record proof of their utter contempt
for commercial interests not for the |
country generally but for legitimate
trade in New York City as well. |
AThe Morgan and Standard Oil
banks he said, pursued in that
critical moment, the course of the
speculating bankers.
DThey ministered," he said, ito the
needs of Wall street, quite deaf to
the needs of commerce. Their course
was that of men who were playing
with the credit of the country for a |
purpose"
Mr.. La Toilette reviewed the
growth of industrial reorganization
from the year 1893 which he said
saw the beginning of that movement.
"These re-organizations were at the
outset limited to those turning out
finished products similar in kind" he
said.
Within period Of three years
following l42 re-organizations were
effected In making those re-organi-
cations the opportunity for large
paper capitalization offered too great
a temptation to be resisted. This
was but the first stage in the crea-
tion of fictitious wealth. The success
of these organizations led quickly on
to a consolidation of combined in
dustries until mere handful of men
controlled the commercial produc-
ton of the country. The opportunity
to associate the reorganization of
the industrial institutions Of the coun-
try with banking presented itself.
Such connections were a powerful aid
to reorganization and re-organlzation
offered an unlimited field for specula-
tion. 1t was a tremendous tempta-
tion."
He discussed the economic devel-
opment of the country and laid es-
pecial stress upon the growth Of
financial combinations.
"The bare names of the directors