The Detroit times., 1913-06-20
Organized Effort to Make Pres
ent Week First of Nation.
Wide Depression Fails
Absolutely
NcADOO'S ANNOUNCEMENT
PUTS CRIMP IN PLANS
Scare" Passes Over Heads of
Population Without Slight.
est Rumble
BY DAVID GIBSON,
Editor Bank Notes Magazine.

Se''o' os"N NoteS md9aZIne'
A money panic. carefully planned
by Wall-st. bankers and beside which
1873 or 1907 would have seemed pros
berous times, has been nipped in the
bud.
The panic, we'll under way, stopped
when Secretary OF the Treasury Nc
AdOo. acting with full approval OF
President Wilson announced that the
United States treasury was prepared
% loan country banks $500 100000
% paralyze the Wall-st. gamblers.
The money trust inquiry probably
will be reopened
And there will be no bankers feast
bn the carcasses OF dead business.
There Is positively no doubt that
EVall-st. deliberately mapped out
panic to throw some OF It's enemies
Into bankruptcy and to give tariff
hnd currency reform black eye.
For three months. paid representa-
lives OF New York. banks hav been
travelling around the country spread.
Ing alarm among bankers and drop
ping hints to companions in luxurious
PuIlmans.
Trust-owned newspapers have been
Following them up and seconding the
motion by announcing a coming short
hge OF money and countrywide
etagnation of business to result.
All this time, prosperity was on a
aounder basis than ever before.
Crops. steel production and exports
had broken all records. The stock
market refused to respond.
Wall-st. sulked--then planned a
panic. II sent forth It's agents TO
scare business men.
Then II began to hoard gold until
The money market was almost cor
nered.
New York banks announced that
money was scarce-at the same time
their vaults were bulging. One OF
THE loudest Of the howlers had re-
|duced its loans and increased its de-
|posits by weakening securities, until
lit had increased it's stock of money
nearly $2O.OO0.O00.
The bankers began to refuse loans.
Their allies in other big cities fol-
lowed them. There was a shortage OF
|credit, but no shortage OF money.
Country banks and business con-
Germs all over the country couldn't get
money. A great western railroad
with over 1000 miles OF tracks was
thrown into bankruptcy because Wall
at. refused to loan II $500, ,000--a
loan that this road had often foated
without difficulty.
Such was the situation on last FRI
day the Thirteenth.
II threatened to be q second Black
Friday on the New York stock ex-
change.
A panic started.
The stock market was almost In
chaos; many good securities had al
ready reached lower prices than dur
ing the panic Of 1907.
Three weeks Of this would mean
bread lines, factories closing down
and banks suspending payment OF de-
posits.
Then came the offcial announce
ment that the banekrs no longer had
to look to Wall-st. The United States
treasury would, II necessary, issue up
to $500, ,O0O, 900 in emergency currency
under the Aldrich-Vreeland act to
meet any crisis.
This meant a federal war against
Wall.st.
There was no need of the money
after It was offered. One threat was
enough.
New York banks suddenly found"
millions, and dumped them on the
loan market. The high call loan rate.
dropping from to ~ per cent, was
cut in two In a few hours.
One New York bank reduced It's
rates for time money, offered to lend
freely of its surplus reserve of $2S,.
000. 900. and in one day bought 81.
OO0. 1000 worth of commercial paper;
the day before, this bank had been
the loudest calamity bowler about
money shortage.
Wall.st. has been given q terrific
beating; and the. panic has gone on
over our heads like q black cloud
probably for good.