The Seattle star. [volume] (Seattle, Wash.) 1899-1947, 1915-01-20

tQASIQR RUSstlp) lsht or a l p,sy,o :,
answered before
treating todny's text As q IL Of pc
cnilar Interest We give u ~ ull
He had applied Hebrews 1897 20 our
day. declaring now In progress the
/ removing Of all things shnkhble,
that only things harmonious Win
Divine standards. which cannot be
shaken. may remain. He held that
tho shaking heavens reprssented
Ichurchiaaiiy - Ecciesissticisn--and
tho shaking earth represented social.
financial and political affairs. Ills
auehtioner wanted 90 know what
financial shakings are 90 be expected.
Tho response follows.
sss~ks sad BosAs 90 Ne shaken.
Everything false. bogus. incquit-
able. will DO shaken. In financial
pariAnce this H. equivalent 20 saying
that tho water" will be squeezed out
OF all the stocks and bonds. By
methods once sanctioned. hut now
everywhere reprehended. stocks and
bonds have been issued for sums far
beyond the actual value Of the prop
rrtien These stocks and bonds have
cost their present owners varying
sums from nothing up 20 par. but
their actual value 10 what the prop
critics would cost. plus n reasonable
!
way and business good Will" In
ordinary times these had market
value built upon hopo OF their future
prosperity. Nov. however. the gem
rrai public has become aware Of the
real situation and II fearful 20
touch a; any price these shares and
bonds Of oycr.capitalixed companies.
and the most sound aud solvent Of
them share the public distrust.
Now. IN the opening Of the New
piNpeusaflon, when everything ~
being shaken" We are 20 expect
be shaken In value until everything
like dishonesty and ineaulty shall
have been shaken out
Forty years ago tho worlds great
bankers and unAnci~fs concluded
that ~ would be 60 their Interest 60
demonrtiz~ silver and have only n
gold standard. This finally accom-
tended; IL curiRlied tn. worlds
monetary supply and enabled the
bankers the better TO control the
entire situation throughout the
world. ny an elaborate banking
system valuable IN some respectful,
~ made zach gold dollar chase itself
and do tho work Of five dollars or
ten dollars. assisted By bank checks
and drafts. Thus the profits OF IN.
larger banks increased amazingly
by reason OF higher diFcoun, and In
tercr; charges. making them rich
a, tho public expense.
The public, Of course. acauiesccd
In the law demonetixinx silver and
making gold tho single standard.
But they did IL under misapprehcn-
sion. because they believed In the
bankers tais~-and this was really
tho best thing for tho people, and
not merely "A measure In the inter-
pense OF the people. II IL perhaps
but fair 60 say that less than one
half OF tho bankers understood the
philosophy OF the matter. the others
were guided by the Weather and
more aHtute who did fully under
stand.
Tho result has been great profits
TO tho bankers. aud great power:
for without them. railroad stocks
and bonds could not be handled
successfully. The bankers took over
large issues OF railroad stocks and
bonds, by what IL known as the un-
derwriting process They were cap
n good round percentage OF profit.
advancing money on tho bonds and
holding them for sale TO tho public.
The Day Of R~ckoaisx.
Now we zee fulfilled the Scripture
their own craftiness" dob k1sD
How 40. do you ask I reply that
the great banks have their vaults
well filled with there bonds and
stocks on whictr they had hoped 60
make large profits; but which. on
the contrary. they are now unable
TO sell at any price. These stocks
and bonds reckoned In as part OF
tho banks assets. show them TO be
wealthy. with immense SURPRISES;
but now the water" IL to be taken
out OF those stocks and bonds. It
win show an immense shrinkaxe in
tho resources Of these banks. They
viii become suddenly poor without
actually losing n cent. by reason OF
tho market value of their securities
falling.
This fact IL realized by all banks
They realize that II the Dav OF
Reckoning has come, and their
hoidings--tholr securities--sre 10 be
reckoned Mt their actual value. IL
win mean that instead OF large re-
sources and SURPRISES. some OF the
richest banks will become iDsolvent
and be called upon by the govern
ment. either to ciose their doors or
mako good their shortage. And
right there will he their difficulty,
for the rich men OF the world have
their capital invested similarly. and
tho reaction will be bound to un-
favorabiy affect all the great com
mcrcial enterprises OF tho world.
As ell went well. amazingly well
for the bankers and the wealthy by
reason OF tho demonetization OF
silver, so when tho Day OF Reckon
ing shall have fully dawned, things
Will 20 especially hard with these
same people. And. although the
rtoppaKe and the reconstruction
win involve the whole world. poor
and rich alike, nevertheless In many
respects the rich will feel the pres
sure most.
The iiauidating process had al
ready begun before tho present
European war started. The Hart
ford and New Haven Railroad, The
Chicago end Rock Island, and 9TH
with these the water squeezing"
processes OF the law have been
threatening and win undoubtedly
accomplish their thorough "shak-
ing" But meantime. tho war walt
ing not for the moro gradual pro-
oesses of the law and the ordinary
business. has brought the financial
world to a crisis The nations OF
Europe are being shaken. The
Casualties OF the war already
amount to n million and half OF
human beings, and hundreds OF
millions OF dollars And y is only
begun. Financial values there are
greatly impaired. az are also ma
tionai credits Tho thing wanted Is
gold. and as I'm every war, the pre-
cious metal has practically disap-
pcarod In the nations at war. Their
home securities will not be salahle
for cash. and "A general attempt will
be made TO sell American securities
American stocks. bonds, etc. But
who will buy those7 America will
be pract ically the only market for
them, and as we hnvc already seen
American banks and bankers are