New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-11-09
FINANCIAL,

answered before treating today's text.
A. il IL of peculiar interest we give
it in fun. He had applied Hebrews
l2:27 to our day, declaring now IN
progress the removing Of all things
shakable, that only things harmonious
with Divine standards, which cannot be
shaken, may remain. He held that the
shaking heavens represented Church,
anity Ecclesiasticism and the shsk-
ing earth, social, financial and political
affairs. His questioner wanted 20 know
what financial shakings are TO be ex-
pectcd. The response follows;-
Stocks and Bonds to BE Shaken.
Everything false, bogus, inequitable,
will be shaken. In financial parlance
this is equivalent 10 saying that the
"water" will be squeezed out of all the
stocks and bonds. By methods once
sanctioned, but now everywhere rep
rehended, stocks and bonds have been
issued for sums fer beyond the actual
value Of the properties. These stocks
ard bonds have cost their present own
ers varying sums from nothing up to
par; but their actual value is what the
properties would cost, plus reason
able percentage OF allowance for right
ordinary times these had a market
value built upon hope of their future
prosperity. Now, however, the general
public has become aware of The real
situation and is fearful 10 touch at
any price these shares and bonds Of
over-capitalized companies, and the
most sound and solvent of them share
the public distrust. Now, IN the open
ing of the New Dispensation, when
everything is being shaken we are
20 expect that all such stocks and
bonds will be shaken in value until
everything like dishonesty and nequlty
shall have been shaken out.
Forty years ago the worlds great
bankers and fnanciers concluded that
il would be to their interest TO de
monetize silver and have only gold
standard. This finally accomplished
what they foresaw and intended: 1t
curtailed the worlds monetary supply
and enabled the bankers the better 70
control the entire situation through
out the world. BY an elaborate bank
ing system valuable in some respects,
il made each gold dollar chase itself
and do the work of five dollars or ten
dollars, assisted by bank checks and
drafts. Thus the profits Of the larger
banks increased amazingly by reason
of higher discount and interest charges,
enriching them at public expense.
The public, of course, acquiesced in
the law demonetizng silver and max
ing gold the single standard. But they
did it under misapprehension, because
they believed the bankers tale-that
this was really the best thing for the
people, and not merely a measure in
the interest Of the banker and at the
expense of the people. II is perhaps
but fair 70 say that less than one-half
of the bankers understood the philos-
ophv of the matter; the others were
guided by the Weather and more as
tute who did fully understand.
The result has been great profits 70
the bankers, and great power; for
without them, railroad stocks and
bonds could not be handled success
fully. BY the underwriting process the
bankers took over large issues of rail
road stocks and bonds. They were capa-
Bile sales agents for the bonds at
good round percentage of profit, add
vancing money on the bonds and hold
ing them for sale to the public.
The Day of Reckoning.
Now we see fulfilled the Scripture
declaration, "He taketh the wise in
their own craftiness" dob 6:l3)
How so, do you ask? | reply that the
great banks have their vaults well
filled with these bonds and stocks on
which they had hoped to make large
profits; but which, on the contrary,
they are now unable to sell at any
price. These stocks and bonds reck-
oned in as part of the banks assets,
show them to be wealthy, with i'm
mense SURPRISES; but now the water"
is to be taken out of these stocks and
bonds. It will show an immense
shrinkage in the resources of these
banks. They will become suddenly
poor without actually losing cent, by
reason of the market value Of their
securities falling.
This fact is realized by all banks.
They realize that if the Day of Reck-
oning has come, and their holdings
their securities to be reckoned
at their actual value, it will mean that
instead of large resources and sur
pluses, some Of the richest banks will
become insolvent and be called upon
By the Government, either TO close
shortage. And right there will be
their difficulty; for the rich men of
the world have their capital invested
similarly, and the reaction will be
bound to unfavorably affect all the
great commercial enterprises of the
world. As all went well, amazingly
we'll for the bankers and the wealthy
by reason Of the demonstration of sill
yer, so when the Day of Reckoning shall
have fully dawned, things will go es
pecially hard with these same people.
And, although the stoppage and the
reconstruction will involve the whole
world, poor and rich alike, neverthe-
less in many respects the rich will
feel the pressure most
The liquidating process had already
begun before the present European
war started The Hartford and New
Haven Railroad, the Chicago and
Rock Island, and others, have been
called to account. With these the
water squeezing" processes Of the
law have been threatening and will un-
doubtedly accomplish their thorough
shaking" Put meantime, the war,
waiting not for the more gradual
processes Of the law and the ordinary
business, has brought the financial
world to a crisis. The nations Of
Europe are being shaken. The cas-
ualties Of the war already amount to
a million and a half of human beings,
and hundreds of millions of dollars.
And it is only begun. Financial values
there are greatly impaired, as are
also national credits. The thing want
Cd 10 cold apd &c in avarv utoc 81 /,