Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1913-07-04
HOW WALL STREETS
PANIC BLUFF WAS
CALLED BY WILSON
johnson Tells Inside Story c. f.
cent FURRY in Financial
Circles. |,
PRESIDENT BLOCKS GAME
Announces S5OO,OOO,OOO Emergen.
cy Currency Will Be Issued
if Needed.


furry on Wall Street was terminated
abruptly by the prompt action of Pres.
ident Woodrow Wilson was told re-.
Gently in the Hoquam Washingtonian.
Congressman Johnson's paper, and il.
Illustrates very aptly how the present
administration proposes to deal with
the financial powers which might ar.
tempt to plunge this country into a
panic.
The article said
The sudden collapse of the alleged
financial disturbance which Wall
Street attempted to start on Friday
the 18th, astonishes good many tim;d
people-especially the timd ones who
are always scanning the sky for clouds.
AS matter of fact, things did look
squally Heretofore the New York
bankers had been able to so manipu-
late the money of the country as to
uplift or depress conditions and make
the general public poor or rich at will.
This time something went wrong with
the calculations of the pirates. All
panicky talk suddenly ceased, call mon
ey rates declined. those bankers who
had been the loudest calamity howlers
made quick veer to windward and
announced they had coolies of money
to loan.
What caused this sudden change:
Well, it came about by the taking of
steps which showed that at present the
financial affairs of the United States
are being administered from Washing
ton, d. c., instead of from Wall Street,
and President Wilson. instead of the
House of Morgan, is in charge.
David Gibson, editor of Bank Notes,
tells how the panic was squelched and
every plain as we'll as vanished Amer
lean should feel thrill of pride at the
following recital:
'The panic, we'll under way" writes
Mr.. Gibson. stopped when Secretary
of the Treasurery McAdoo, acting with
full approval of President Wilson, an.
nounced that the United States treas
ury was prepared to loan country
banks S500,000,0O0 to paralyze the Wall
Street gamblers. The money trust in
quiry presumably will be re-opened,
and there will be no bankers feast on
the carcasses Of the dead business.
There is positively no doubt that
Wall Street deliberately mapped out a
panic to throw some of its enemies In
to bankruptcy, and to give tariff and
currency reform black eye For three
months paid representatives of New
York banks have been spreading alarm
among bankers and dropping hints to
companions in luxurious Pullmans
Trust-owned newspapers have been fol-
lowing them up and seconding the mo-
ton by announcing coming shortage
of money and a countrywide stagna-
ton of business to result. All this
time prosperity was on a sounder ba-
sis than ever before-crops, steel pro-
duction and exports had broken all
records.
THE stock market refused to re-
spond. Wall Street sulked. then plan
ned panic. 1t sent forth its agents
to scare business men. Then 1t began
to hoard gold until the money market
was almost cornered. New York banks
announced that money was scarce. At
| the same time their vaults we're bulg-
ing. One of the loudest of howlers
had reduced its loans and increased its
deposits by weakening securities, un-
til it had increased its stock of money
nearly s2O,OOo,OOO.
THE banks began to refuse loans.
Their allies in other big cities forward
ed them. There was shortage of
credit, but no shortage of money Coun-
| try banks and business concerns all
over the country couldn't get money.
A great Western railroad, with over
1000 miles of tracks, was thrown into
bankruptcy because Wall Street re-
fused to loan it s3,5OO.OOO. loan that
| this road had often fioated without
difficulty
Such was the situation on last Feb
| ruary, the 18th. 1t threatened to be
second Black Friday in the New York
stock exchange. panic started. The
stock market was almost in chaos. New
York securities had already reached
lower prices than during the panic OF
1907. Three weeks of this would mean
bread lines, factories closing down and
banks suspending payment Of deposits.
Then came the Official announcement
that the bankers no longer had to look
to Wall Street. The United States
this year would, II necessary issue up
to 100000 in emergency currency
under the Aldrich-Vreeland act to meet
any crisis. This meant federal war
1 nt,.rA all