Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1914-08-01

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, people call confederate money, with
which was very familiar when was
boy-shin plaster-and yet it was
issued by national banks"
Among the many such samples thus
put in evidence by the South Carolina
senator was a little slip of paper typi-
cal of the kind OF money current on
the Pacific coast that year. II was
called Lumber Money" The lumber
man that memorable fall did not get
money for the product; he got an
Il. o. u"
The severity and causes OF the panic
/ were told in an editorial published in
the Philadelphia North American
Qnd.), December 8, 1907:
Fear has subsidized sufficiently to
make Straight talk safe. For many
weeks the newspapers of the country
uniformly maintained an optimistic at
titude and refrained from printing
facts or comment likely to increase
the prevailing commercial dread and
! thereby hurt the public
Prosperity was keeping currency in
the sections where it was owned, and
Wall street wanted that money back
again to gamble with The
money changers stood from under the
stock market and let it crash upon the
small fry
Eight months ago John d. Rookie
Teller started a cry of calamity. 9th
ers fthe chief money changers took
up the chorus. And for eight months
the gamblers and Wall street prophe-
sled disaster. preachea panic and did
their utmost to create calamity. 1t
was not easy sailing for time. The
country was rich, busy and contented.
The panic breeders were facing I'M
precedented conditions. Consump-
ton was larger than production.
There was neither dread nor discon-
tent; no scarcity of anything except
labor.
THE country refused to be fright
ened. Brute force must be used. The
money changers then used their most
murderous weapon. By their control
of the currency they could lock up
the money of the country and make it
so scarce that business could not pro-
coed. By Gripping industry and Gre
ating distrust they could cut down
consumption, make goods cheap and
cause the money glut they wanted.
They used that weapon"
AS late as December IA, 1907, a Lon
don cable to the Washington Post said:
Americas financial difficulties con-
tinue to be the dominant topic of the
business world throughout Europe. A
representative utterance is this in to-
days Economist:
"'How and when the American
coach will be pulled out of the mire in
which it has been sticking for the last
eight weeks, is a problem that be-
comes more pressing every day. The
present situation is peril to financial
and commercial interests the world
over.''
The remedy needed was well under
stood even then. Legislation was de-
manded which would revise the cur
rency system so as to take away Wall
streets control of the currency. The
progressive republicans and the demo-
Gratis fought hard for such Legislation
through the winter and spring of 1908.
But the Cannon machine in the house
and the Aldr1ch machine in the senate
stood in the way.
The sole result was the unwieldy and
practically useless Aldrich-Vreeland
emergency currency act, which con-
templated substituting emergency
treasury notes for the clearing house
scrip issued in 1877. 1t did not in
the least affect Wall street control of
the general currency supply of the
country.
Though the republicans remained in
power for another six years after 1907,
they did nothing of a CONSTRUCTIVE
character to reform conditions which
had caused the most acute and disas-
trous panic in the history of the coun-
try" But, as is stated above, less than
one year after President Wilson was
the present Regional Re-
serve act went onto the statute books.
To discredit the Underwood tariff
act, to undermine public faith in the
Wilson administration, and to prevent
the enactment of the Wilson trust pro-
gram, the Wall street interests at
tempted to cause panic this year.
The republican partisans in congress
in every possible way.
They failed, first, because the condi-
tons were fundamentally sound; Sec
0nd, because the conditions, being
sound, an artificial panic could not be
created because the regional reserve
act had robbed the New York money
oarons of their control over the cur
-ency system.
Until 1907, the panic of 1894, and
The Cleveland bond issue OF that pc
'iod was a fayorite republican theme
upon the stump. To meet conditions
caused by the panic of 1907-that is.
10 obtain money to bolster up the
New York banks-President Roose-
Eelt and Secretary of the Treasury
Cortelyou authorized the sale OF $780,
)00,0ea Panama canal bonds, and OF
three per cent Unfted
States certificates of Indebtedness.
Their legal authority FOR the latter
issue. of which $50 ZOO. eco worth wers
sold, was doubtful.
Il recall with what wrath and hor-
20 said Capafnr 1Nil5O,an In