The Hattiesburg news. (Hattiesburg, Miss.) 1908-1917, 1911-10-24
ANNIVERSARY or
MONEY. PANIC
Unknown Facts OF 1907 Financial
Storm Revealed BY An of6eiat OF
y
The Treasury Department.

washington, OcI eS.-fne fourtn /
Of the panic Of 1907, which
began In New York on Oct % Of that
year and quickly spread to other parts
OF the country until every state and
almost every town and village was in
volved In it, gives special point to an
elaborate investigation of that event |
which has been made by Assistant |
Secretary of the Treasury Andrew. !
The panic broke SO suddenly and there |
was SO much confusion while 1t was
at it's height that some of its remark
able features escaped attention at the
time and have been brought out for
the first time by Secretary Andrews
investigation.
He finds that $500, 0OO,OOe of panic
money" was issued in different parts
of the country during the last three
months of 1907 to take the place of
ordinary currency which was unob
tainable. These substitutes for cash
were in many forms, from the clearing
house certificates for amounts Of from
SIG. 900 to 100000 with which banks
settled their balances to one another
down to pay checks for sums as small
as one dollar or less. used by employ
ers in paying of their workers. Much
of this wes real wildcat" currency
with no security behind it except the
name Of the issuing concern and it
was accepted for use only because
nothing better could be obtained. In
pittsburg alone S47 100000 of these
Day checks were issued and in most
of the other big cities amounts nearly
az large were used by big concerns in
meeting their payrolls. The inquiry
also brings out the fact that not for g
century has any other nation beer
compelled TO resort to such makshif
substitutes for money as were EN-
ployed on this occasion. Only once
In modern times has there been sucl
Il high premium on coin in any Euro
pean country as prevailed In the Uni
ted States during the latter part o
the panic year. That was in Franc
at one brief period during the Con
mune.
One OF the most remarkable fet
, lures of the panic as brought out
the recent investigation was that
gave rise TO the longest holiday o
record. This was in California, wher
holidays were declared continuousl
/. for more than seven weeks. from DC
81 to Dec 81, in order to enable Ii
= banks to decline payment and to pr
: vent the forcing of collections TIL
s would have driven many bushes
0 houses into bankruptcy. In sever
l. other states, including Oregon an
/ Nevada, similar holidays were d
y clared for shorter periods.
J. When 1t comes down to determtnir
y the cause of the panic, Secretary A
o drew finds that it was due. primari
Y, spread the banks in all parts of Il
e system. AS soon as the first alar
spread The banks in all parts of Il
e country began fighting one another
+ secure and hold as large a supply
g currency as possible. They could n
Il issue additional bank notes to me
i. the situation because In order to
10 this they would have had to purcha
government bonds which would ha
depleted their funds still further. T
remedy, in his opinion, Is the orga
cation of a cooperative associate
through which the banks will act
gether In cases OF emergency, inste
of fighting one another. and legal pi
". vision by which bank notes can be
er sued against other forms of sscuri
IN than government. bonds. This Is
&C system which many business men 9
he now advocating. A number of
no most prominent business men in
he country recently formed an organi
re ton In Chicago under the name Of
he National Citizens League for the p
ng pose Of bringing about the impro
Ia ment of the banking and currency 8
tenn OF the country along these lines
-