The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-12-28
PRESIDENT TAFT's CAUTION.

| 4
II was noteworthy that in President
Taft message to Congress in -.ch
he dealt with the Aldrich currency
scheme. he cautiously refrained from
any endorsement of that scheme; in
! fact. he did not agree that our panics
arc caused altogether. or even chiefly
! system. The fact that they arc not is
such truisul that II is curious that
| this truth has 50 generally escaped pub
lie attention and experts have so lit
tic regarded the main facts. The
truth l.. that on at least two occasions
in recent times the monetary pauies
have been artihcially created. without
any reference whatever to the bank note
currency system. The panic OF 1898
was caused plainly auJ clearly by tbc
moueved interests in their war GU sil.
ver. President Cleveland insisted that
silver should not only he bauishsd from
our coinage as current money. hut that
the standard should be explicitly con,
huel 10 gold. He was supported By
panic ip New York, which made every
needless, being brought on merely for
the purpose OF establishing the sole
Coll standard,
Again. The panic OF 1907 was unqucs.
tiouaby brought on nv the promoters
OF the Steel Trust, aided bv the wild
and furious hovls Of President Roose
welt, and especially by mis- Memphis
speech when he came out OF the cane
brakes of Mississippi dissusted and
angry because of the failure Of his
bear hunt The promoters of the Steel
Trust, in order TO get the Tennessee
Coal snd Iron Company into their
hands. made systematic war upon it,
depressed its securities. and shu, OF
its means OF getting financial help. In
the interest Of the scheme, ono of their
prominent men gave a pauickv inter
view in New York which alarmed
everybody; and MessTs. Gary and Frick
visited President Roosevelt. tcrrorized
him by the showing which they were
attitude toward the big business
Of the country were bringing on 4
panic which would be charged 70 him.
Roosevelt weakened. promised immu-
nifty TO the projected trust, and took
credit 10 himself for svertlng 4 panic |
which in fact. he did not avert, and
which was merely beginning at the |
time which he refers to, and which bad
to be stemmed later on by the trust
itself. headed by Morgan.
In view of the facts, therefore.
President Taft was extremely cautious
of endorsing the Aldrich plan, and
even more cautious in asserting TO the |
that pauics are brought on |
bv reason of our unscientiGc currency
system. He intjmatcd rather broadly |
in his message that while our bad cur
rencv system is bad in itself and is
especially bad in panickv times. il by |
no means follows that our Government
based currency brings on a panic. 1t |
is true that this Government based |
currency has tendency 10 restrict the |
issue of bank notes, and there is no |
way to meet au immediate crisis by |
abundant issues OF such notes; but
since the first resort OF the banks in |
New York always is TO lock up all of |
their money as soon as n panic be. |
gins, and make their dealings in
cashiers checks exclusively, it would
not appear that the currency itself is
50 much TO blame for panics as the
determination of the moncycd interests |
10 punish somebody or 10 achieve some
particular end that il has in view.
SO that President Taft Is doubly
right under his propositions. that Gov
ernmont-sccurcd currency docs moi |
bring on panirs aud that it is by no
means sure that tho Allrich scheme
would relieve the difficulties OF our
currency system. It is a useful lesson
which tho President thus imparts, not
only 10 the country at large, but to
tho financial experts and money scien.
lists who appear to have overlooked the
basic facts ~ tho case.