Aberdeen herald. [volume] (Aberdeen, Chehalis County, W.T.) 1886-1917, 1913-06-24
Wall Street Licked

The sudden collapse of the alleged
financial disturbance which Wall
Street attempted to start on Friday
the thirteenth, astonished good
many people-especially the timid
ones who are always scanning the
sky for clouds, says the Washington.
ian. AS matter of fact, things did
look squally. Heretofore the New
York bankers had been able to so
manipulate 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 money rates declined,
those bankers who had been the loud
est calamity howlers, made a 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
0tCRo "hASA oAOWCu IAdt al PACoCAt
the financial affairs OF the United
States are being administered from
Washington, d. c., instead of from
Wall Street, and President Wilson,
instead of the House of Morgan, is
In charge.
David Gibson, editor of Bank News
tells how the panic was squelched
and every plain as we'll as varnsh-
ed American, should feel thrill of
pride at the following recital:
"The panic, we'll under way"
writes Mr.. Gibson, stopped when
Secretary of the Treasury McAdoo
acting with full approval of Presi-
dent Wilson, announced that the
United States treasury was prepared
to loan country banks s500,OOO,000 to
paralyze the Wall street gamblers.
The money trust inquiry presumably
will be reopened and there will be
no bankers feast on the carcasses
of the dead businesses.
"There is positively no doubt that
Wall street deliberately mapped out
panic to throw some of it's enemies
into bankruptcy, and to give tariff
and currency reform black eye.
of New York banks have been travel
ing around the country, spreading
alarm among bankers and dropping
hints to companions in luxurious Pull
mans. Trust-owned newspapers have
been following them up and second
ing the motion by announcing com
ing shortage OF money and coun-
try-wide stagnation of business to re-
suit. All this time prosperity was on
sounder basis than ever before
crops, steel production and exports
had broken all records.
"The stock market refused to re-
spond. Wall street sulked, then
planned a panic. 1t sent forth its
agents to scare business men, Then
it began to hoard gold until the mon
ey market was almost cornered. New
York banks announced that money
was scarce. At the same time their
vaults were bullying, One of the loud
est of the howlers had reduced its
loans and increased its deposits by
weakening securities, until it had in
creased it's stock of money nearly
$2O,000,00o,
"The banks began to refuse loans
Their allies in other big cities for
warded them. There was a shortage
of credit but no shortage of money
Country banks and business concerns
all over the country couldn't get mon
ey. A great western railroad, with
over 1000 miles OF tracks, was thrown
into bankruptcy because Wall street
refused to loan it $3,500,00O, loan
that this road had often floated with
out difficulty.
Such was the situation on last
Friday, the 18th. 1t threatened to be
second Black Friday in the New
York stock exchange. A panic start
ed. The stock market was almost
in chaos New York securities had
already reached lower prices than dur
ing the panic of 1907 Three weeks
of this would mean bread lines, fac
tories closing down and banks sus'
pending 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, if necessary, issue up to
$500, 100000 in emergency currency
under the Aldrich.vreeland act to
meet any crisis. This meant a fed
eral war against Wall street. There