Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-08-17
M'ADOO LOAN PLAN
STILL STREET TALK
Banking Coterie Slowly Recov-
ering From Jolt in Emergency
Fund for Borrowers.
HELPED TO CREATE
BULL STOCK MARKET
Fully Half the Ground Lost in Long
Decline Has Been Recovered-Some
Heavy Transactions.
BY w. g. NICHOLAS.

Special Correspondence Of The star.
NEW YORK, August 16, 1913.
The financial giants who had been led
to regard themselves as especially en-
dowed with qualities Of leadership. and
as being indispensable to the nations
welfare, are undergoing an awakening.
They are being introduced to phases of
the broad situation about which they
had previously enjoyed slight and i'm
perfect acquaintance, or to which they
were entirely unknown. They had actu-
ally let themselves feel that they were
vital to the smooth running of the bust
ness machinery of the world. The thigh
brow theory is turning out to have been
fallacious. and the revelation is one of
the sensations of the recent period.
When Mr.. Morgan died it was felt
that the climax had arrived, and that a
new Napoleon must be discovered and
crowned. The Harrimans, Rogers. Haw-
leys, Cassatts and other conspicuous
generals, colonies and captains of
finance and industry had passed to the
other world. The Stillmans, Bakers,
F'ricks Dukes and others of advisory
and executive position hold themselves
in seclusion behind closed doors. They
had won their fights and are content to
be left In the quiet seclusion of coun-
selors. Few men ever know where
JOuih ~. ItOChtlelleT SldHuS IudTh6lWlSSs
and he is practically the only survivor
on the list of extra-m ultimillionaires-
he and Mr.. Carnegie. Neither of these
gentlemen has aspirations for con-
spicuOus additional standing or wealth.
The Hebrew race has several candi-
dates for financial leadership.
1t transpires, however, that as the rec
ognized leaders die off the country con-
tinues to survive without earthquake
disasters to business. A feeling de-
Vx,ith hot bo
necessity Of supreme personal leadership
in stocks money, railroading, manu-
featuring, commerce or any other
special field of activity is not vital to
IL, the progress %, Of the, the nation; In the
known and respected beyond the realms
of Wall street, there never was born
John P. Morgan as big as the COM
munity in which he lived; no fraction
can ever measure up to the whole"
Wall street has produced several large
sized fractions, but within the circum-
ferences of the space there was always
room for other fractions to move about
William Gibbs McAdoo. Secretary of
the process of ''levelin . the financial in
equalities. and incidentally he helped to
create bull stock market. Wall street
didn't think much Oh Secretary McAdoo
at first. He was under suspicion of eat
ing corn off the cob, pervading the
garden in his shirt sleeves, boring tun-
nels under North river and otherwise
COMFORTING himself in a manner not In
harmony with the ethics of financial
aristocracy. He was a man who might
be tolerated by the elite, but he must not
forget to take off his hat in the pres
ence" and do as he might be told. The
ranking banking coterie never dreamed
that the new and unframed chief of the
Treasury might have a mind Of his own
and act on his own conception of what
his duties might be-and that, without
consultation with the street"
Tight Money Market Scheduled.
The Combination" had scheduled a
tight money market for the balance OF
the year. and CONSTRUCTED business sit
uation. No account was taken of the
Washington end of the game and the
play was going on in the good old
fashioned way, with Wall street pulling
the wires. One day Mr.. McAdoo shot an
electric bolt into the anointed money
center in the form OF an announcement
that he had control Of q $500 OO0. 600 gov
eminent emergency fund which would
be at the command Of farmers and other
business borrowers, as legitimate need
was invited to forget about Wall street,
and come right into the Treasury parlor
and Help itself first hands and thereby
save the customary backdoor commits
sions exacted by fiinty-hearted profess
sional money lenders.
What followed was q new and startling
experience. Wall street at first bolittled
the Washington demonstration, but the
public came to quick appreciation OF Its