Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1914-07-09
1907 AND 1914.

Democrat orators are working over
time now making speeches about con-
ditions in this country in 1907. They
paint a word picture of despair, want
and misery that did not exist IN 1907.
The conditions at that time were alb
solutely different from the conditions
that govern in this country now. At
that time the factories had plenty OF
orders. but they had difficulty in get
ting enough money with which to buy
raw material Itswas the bankers OF
the country who were in a panicky
condition in 1907 but not the banks.
The banks were all right but the east
ern bankers were scared. AS soon as
they began to get over the fright
which they had brought upon them
selves, and the factories began to be
able to get more money, the panic was
past Then the factories had plenty OF
orders. Now the trouble is that the
factories have only few orders. II
the factories have orders for goods
they can soon get the money with
which to operate. A factory that has
orders can always find some way to
get some money. It may not get all it
can use, but it can get some. But
the factory that has no orders has to
shut down.
The so-called panic of 1907 was a
real practical happening for very few
people and a psychological one for
the balance of the country.
For several years previous to 1907 a
bunch OF eastern f1nanciers had been
trying to beat F. Augustus Heinze OF
Montana, in various law suits, for the
title to some copper mines. They
made the mistake of having all their
law suits tried out in HeinZe's home
town. The result was that the eastern
financiers got the boots whipped oil
of them in every law suit.
Finally one of them had thoughtful
half hour and conceived the plan OF
trading New York bank to Heinze
for his Montana interests. He sub
mitted his plan to his associates and
they at once made the proposition to
Heinze and he fell for it and took the
presidency of a New York bank in ex-
change for his copper mine in Mon
tana. This bunch of eastern capital
lists by that move fixed Mr.. Heinze so
that his next fight with them was on
their stamping ground instead of on
his. They framed it up and started a
1t was finally over, put the bank out
OF business and left Mr.. Heinze out in
the middle of the street whirling
around so fast that things have ap-
!, peared in a kind of blur to him ever
since. At that time the bankers in
other parts of the country did not
know just what was causing the run
on Heinze's bank and therefore, they
Immediately got uneasy and shut down
on loans. 1t came so suddenly that no
one was prepared for 1t and some OF
Ahe banks in some cities Immediately
Ssssued cashier certificates, instead of
cash. Ottumwa banks, however, did
not resort to any such plan, but paid
cash right along every day. The peo-
pie of the country however, were not
long in figuring out who was to blame
for the money scare, after they read
that few of the men connected with
the interests that were trying to get
Heinze's copper mine, went down into
Wall street and put up some of their
personal securities with view Of re-
establishing confidence in conditions.
These men were praised for stopping
a money scare, when the facts are that
they should have been condemned for
starting 1t. But the point is that the
above was all the basis there was for
the so.called panic of 1907. On &C
count of the lack of real cause for it,
it was not serious.
The cause of business depression
now in 1914 is entirely different from
the cause in 1907. In 1907 there had
been no legislation that made our fac
tories compete with the factories OF
foreign countries. In 1914 there has