The daily banner. (Cambridge, Md.) 1897-2008, 1914-12-28


piled to our day, that the removing of
all things shakable is now progressing
that the shaking heavens represent Ec.
clesiasticism, and that the shaking
earth represf pts social, financial and
political affairs. Everything false, bo-
gus, inequitable, will be shaken. In
financial parlance this is equivalent to
saying that the water will be SQueeZ-
ed out of stocks and bonds.
The subject of the characterization of
silver was discussed at length. Forty
years ago fnanciefs concluded that it
would be to their interest to have only
gold standard. lulllullll i - -,
acquiesced believi lhe bankers tale
that this was reallI the best thing for
the people. 1t e perhaps but fair to
say that less than one-half Of the
bankers understood the philosophy Of
the matter, but were guided by the
more astute. who fully understood. The
result has been great profits and pow
er to the bankers; for without them
railroad stocks and bonds could not be
handled successfully. By what is
known as the underwriting process,
the bankers took over large issues OF
railroad stocks and bonds, for which
they were capable agents at round
profit. advancing money on the bonds
and holding them for sale to the public.
the oay of Settlement.
The great banks have their vaults
well filed with these stocks and bonds,
on which they had hoped to make
large profits. but which they are now
unable to sell at any price. Reckoned
in as part OF their assets, these stocks
and bonds show the banks to be
wealthy, with immense surpluses; but
now that the water" is to be taken
out of these stocks and bonds, there
will be an immense shrinkage in the
resources of these banks. They will
suddenly become poor without actually
losing a cent, by reason of the falling
market value Of their securities,
All banks realize this fact. If their
holdings are to be reckoned at actual
value, some of the richest banks will
become inSolvent and will be called
upon by the Government either to
close their doors or to make good their
shortage Right there will be their
difficulty: for the rich men of the
world have their capital invested SINH
larly. and the reaction will be bound
to affect unfavorahly all great COM
mercial enterprises,
AS all went amazingly we'll for the
bankers and the wealthy by reason OF
the decentralization of silver, so when
the Day of Reckoning shall have fully
dawned, things will go especially hard
with them. Although the stoppage
and reconstruction will involve rich
and poor alike. in many respects the
rich will feel the pressure more.
Lieudating Process Begun.
Meantime, -he war has brought the
financial world to a crisis. The nations
Of Europe are being shaken. Already
the casualties Of the war amount to
nearly two millions Of human beings
and hundreds of millions of dollars;
and it is only begun. The thing wanted
is gold; and. as in every war, this pre-
cious metal has practically disappeared |
In the warning nations. Their home |
securities will not be salable for cash; |
and ii general attempt will be made to
sell American stocks and bonds. But
who will lay these? America will be
practically the only market; and Amer
lean bankers are loaded down heavily.
Reliable financial authorities declare |
that Europe has about five thousand |
millions Of dollars invested in Ameri |
can securities If but one-fifth Of these
be sacrificed to realize gold it will |
mean a financial deluge. American
banks, already overloaded, cannot pur- |
chase all; hence prices will tumble and |
wrecks follow.
Is it any wonder that American
bankers fear to see Stock Exchanges
open for business? Had the Exchanges
not closed promptly when they did,
we would have had the most terrible
panic ever known. By their closing,
the face value Of stocks and bonds
has been preserved, and thereby bank
ers have been permitted to continue to
count these at fictitious prices which
nobody would pay for them today.
The Pastor then demonstrated that, ]