Tonopah daily bonanza. [volume] (Tonopah, Nev.) 1906-1929, 1911-08-10
POLITICAL FINANCE.

1t is astonishing that the people should send
their representatives in congress men who are
willing to make political capital by attempts to
show that president of the United States had
acted improperly, or even nconsiderately, in re-
spect to such matter as the purchase by the
steel corporation Of the Tennessee Coal and Iron
company.
AS matter Of fact President Roosevelt did
neither. What he did was done openly, with
full knowledge OF the country and with universal
approval at the time. His statement given to the
investigating committee the other day merely
added some details to transaction with which
the country already familiar.
incidentally the propriety of such IA state
ment by Il former president to congressional
committee is doubtful. While still president he
would not have appeared before a congressional
committee, even voluntarily, i'll this case,
and it may prove bad precedent that Colonel
Roosevelt as a private citizens should have APP
peared before the committee III respect to official
acts performed while he was president. That
he was not subpoenaed and not sworn helps
it a little.
In the purchase of the stock of the Tennes-
see Coal and Iron company the steel corpora.
ton did nothing more than it did in acquiring
its other properties. If it is lawful corpora
ton its purchase Of the Tennessee stock was e-
gal The purchase did not harm any stakeholder
and has not yet injured the public.
Nobody questioned the legality of the cor
poration when it was organized, but by 1907
there had been disclosed such evidences of Il
popular desire to attack all great corporations
that it was only act OF ordinary prudence
to ask the president before making the pur-
chase whether it would be considered unlawful
and subject the corporation to attack by the
government. And the president, upon the adj
vice of his official legal adviser, stated, without
binding the government in any way, that he
for off al oh To no uJr.
chase.
At that time the country was i'll the throes
Of a financial panic. There almost no law
full money to be got at any price, and the actual
suspension of all business was prevented only
by the issuance of clearing house certificates,
which served the purpose of money. A tinan-
cial house with twenty-five or thirty millions
of indebtedness was about to fail because its
Tennessee Coal and Iron stock was unacceptable
as security for loans.
If it had failed, probably some OF the banks
to which it owed large sums would have also
failed, and there was fear Of such succession
Of failures as would have destroyed all credits
and precptated general bankruptcy.
But the securities of the steel corporation
good collateral for loans, and when those
substituted for the Tennessee stock the indebted
house was saved and confidence finally re-
established.
But now, why is it that transaction which
has harmed nobody, and which was so far as
any one knows, absolutely lawful, is selected
for vicious attack when the issuance of clear
ing house certificates as money-unquestiona
in violation of LAWS never referred to as
worthy of prosecution?
1t is solely for the sake of doing politics
and is disgraceful. If the president in his dis
erection, and with general commendation
Trained from prosecuting clearing house banks
for what was doubtless unlawful, why should
he be assailed for not threatening prosecu-
ton for an act, also considered necessary, and
believed to be lawful?
That kind of politics is a disgrace to any
nation. 1t is piece with the demagogical at
tacks upon proposed financial plan for pre-
venting such panics as that of 1907 because
Aldrch" was the author Of the plan.
1t is of no consequence who devised the meas
ure. The only important thing to be considered
is whether the proposal is wise or wrong.
Blind demagogy do more to stop bust
ness and throw men out of employment than any
other human agency.-San Francisco Chronicle.