The Birmingham age-herald., 1910-02-20
Financiers Would Put the Bur.
 den on Washington.
HOW THE CLIQUE WORKS
Will Take n short Holiday-The Rev. Decisions Than Few Weeks Ago. Ticker Again PrOclaims
 Country Safe
By W. c. NICHOLAS

again lOr the moment. InlS IS a matter of congratulation. Until the stock ex- change came to decision on this point there was great trepidation among many well meaning people who are influenced | largely by the fluctuations in prices of | stocks and bonds. They are obsessed with the idea that all business wisdom
 and foresight is lodged on the stock ex-
 change and that the big plungers who fig ure in the speculative world are gifted
 with prescience and in some mysterious
 manner have advanced knowledge of I what is going to happen of importance l in the financial and commercial area. As matter of fact the big people in Wall 1 street are very much like the rest of
 mankind and are generally governed by self-interest. Their affairs being of very great importance and in such shape that
 they have to keep close watch of them, their ears become possibly more keenly attuned to current phenomena and their judgment more accurately trained to
 weigh the significance of events than the
 rank and file of their fellow men, but
 that Is all. They are subject to panicky fits and to periods of vacillation just the
 same as people of less consequence For
 the last several months they have been
 possessed of the notion that the politics
 of the country were threatening the sta-
 bility of business affairs and in some
 way jeopardizing the safety of invest
 ments. In vain did the President and leaders of the dominant party at Wash ington hand out reassuring bulletins. The impression gained ground that Washing ton was determined to run amuck and
 keep things stirred up in a manner in- furious to ''the interests" and what that phrase represents. This feeling would not be quieted and as the stock market receded there ensued continuous fresh liquidation and the toppling over of pyra- mdis. Paper profits vanished and a sea- son of unrest ensued which has not yet given place to that repose of mind which is necessary to completely restore con fidence. Nevertheless sentiment is im- proving and confidence is returning This is evidenced by an increased volume of general buying and a restored sense of safety in various quarters; which have more or less influence in the shaping of
 
 But really and truly there is another cause for the crystallized timidity of the stock market as shown in the declining prices which set in away last fall and continued with only slight Interruptions until very few days ago-a cause more important than political unrest or any thing else which has happened or Is like iy happen in ,ne near future The fo fha of bo | money trust which holds in Its hands the power to ruin any man or any business combination in the country. By its con trol of nearly all of the leading banks, trust companies and insurance compa- nes in this part of the world it has in- side and exact knowledge of the peak points of every important business enter prise having headquarters in New York It is not necessary for the 50 or 50 men in charge of this all-powerful machinery to meet and conspire to do things or not do things There is an unwritten and an unspoken understanding among the men who compose the gigantic combina- tion which is quite as effective as though every move were directed by en- actment and written order. It Is learned that some bank or institution is discrim- mating in its loans against this or that interest and immediately other affiliated
 
 The interest marked for discipline or pruning might just as well be placarded on the street corners for the facts will soon become known all through the hnan cial section. It is not required that par ticulars be given. It Is enough to know that some member of the combination for reasons sufficient unto itself has turned against a concern or an individual. It is not for the others to inquire why.
 of min which | came to light day or two ago illus trates the far-reaching ramifications of the combine. It so happened that a partner in manufacturing concern brought suit recently against a big in- President thereof. This concern was conslue. able borrower of money. Soon after the legal action referred to was brought the concern began to experience big difficulty in making renewals and be- fore long this bank and that bank let 1t be known that accommodations would be denied because of a fear of giving off, fense to the great insurance magnate- The magante in question did not have to say a word or lift a hand against the con- cern. It was enough for the banking ele- ment to know that he was displeased be- cause of the litigation. The bankers within his sphere of influence took 1t for granted that they would not incur the great mans displeasure by refusing to lend money to the people who had given offense In this particular case the threatened outcome is freeze-out and possibly bankruptcy. This is minor incident and quite way removed from the great Wall street center, but 1t goes to show the power for damage which Is vested in the hands of the money com- bination. What could be done in that in stance can be done in thousands and tens of thousands of others and knowl- edge that this is true breeds general sense of apprehension in the business community It serves to check enter prise and to induce prudent people to shorten sail and to keep close to shore. It is almost as though business interests were confronted with a fore-knowledge of panic to feel that they are under the espionage and in absolute grip of vast and powerful money trust able to throt- tie and possibly governed by caprice or selfish and interested motives in the treatment of clients.
 For this reason the persistent speech making of men like ex-Secretary Leslie M. Shaw and others against the organlza- ton of a central bank is attracting great deal of attention at this time. MT. Shaw and others of his faith and opin- ions have been very outspoken in sound ing the note of alarm and what they have been saying directs attention most strongly and unpleasantly toward the combination or money trust now in opera ton. It Is the big men in the money trust who have been most energetic and noisy in telling the public that Wash ington is to blame for fomenting distrust and fear By getting people to look that way they hope to create a diversion un- der cover of which they may escape blame themselves. There Is a deep and growing feeling that in the summing up