The Big Sandy news. [volume] (Louisa, Ky.) 1885-1929, 1916-11-03
BIT OF HISTORY
THAT EVERYBODY SHOULD,KNoE
Example OF The Power Formerly Pos
sessed And Used In Wall
Street.

taken the credit OF the United Statel
out OF the hands OF the Wall stree
lmanipulators and placed It under gov
eminent control. thereby emancipatinI
small business and relieving the coun
try OF the awful dread and experiences
OF panics, But probably the average
voter knows very little about the full
meaning of this important fact.
Tho Federal Reserve banking ant
currency law has done exactly tina
thing and the greatest calamity tha
could happen TO the middle classes, tn,
average business men and the pool
classes OF all walks OF life would b,
the repeal OF that wonderful law.
Before its enactment we had a mon
ey system" that contracted when We
| needed expansion and was plentiful
only when We did not require IL in trade
channels Every bank stood absolute
ly alone the foe OF every other bank
in sense, when panic was scented
Can you imagine a worse condition
than the banks with no place to con-
vert good assets into money, no matter
what demands came upon them' A
cry OF panic" in New York was suf-
ficient TO create real panic all over
the United States, because every bank
Immediately began to grab for all the
real money in sight, quit making loans,
and even collect notes as they fell due.
They were compelled to do this for self
protection. but this action stopped
practically all business and caused hard
times and failures and general democrat
ization.
The law now in force prevents all
this. Nobody can scare an honest bank
now The Federal Reserve banks Will
take over certain lines OF good notes at
any time from the National banks, all
OF which are members. These govern
ment banks do no business with the
general public, but they carry a certain
amount OF reserve money for every
National Bank and this. In measure
.consolidates the resources OF all the
banks in district (The United States
is divided into twelve districts) Thus
instead Of the old dangerous and antag :
onistic plan OF every fellow FOR himself
we have great strength and unity
Now, to make clear the enormous
power formerly held by interruptions
rich men who operate in the stock
gambling district Of Wall street. We can
best do it by giving the history of just
one instance in which a President OF
the United States was held up and
forced to permit bunch OF these fell
lows TO break the Sherman Anti Trust
law. That President was none other
than Theodore Roosevelt. who admits
that he is the bravest and most fearless
man in the world to-day--the wild and
woody Teddy Bear, who is cavorting
up and down the country at this very
moment, seeking whom he may devour
somebody" Although nine years have
passed he should yet look UP that
bunch OF nine rich thugs and lick EN-
to a frazzle, This should temporarily
satisfy his thirst for gore.
In 1907 the Tennessee Coal & Iron
company was a successful concern.
France advertised for bids on a big
several millions OF dollars The United
States Steel company expected 70 get
the contract as II was the largest man
concern in this line in the
world The Tennessee company sur
prised them by bidding in the job AZ
nine millions. Before bidding the com
pany arranged with three banks, one
each in New York. Boston and Pitts
burg, to furnish and procure the large
sum OF money necessary TO be borrow
ed to complete this contract France |
could not be expected TO pay until the |
steel work was delivered and inspected
OF course.
When the u S. Steel company found |
by this experience that the Tennessee |
was a real competitor they |
said, we must get rid OF this concern
The loans were larger than tho three |
banks could take care OF themselves, |
but they expected to distribute them
amongst a number Of other large banks, |
as was customary under normal condi-
tons. The big fnanciers controlling |
he big credits, just as has so often been
charged, stepped in at the right mo-
ment- and passed the word around to |
extend no credit or help to these three
banks; let them take care OF the load |
they have assumed The result was 4
that the three banks were forced to .
close their doors. october q, 1901 was
the day the awful crash came. The |
worst panic ever experienced then grip
ped the United States. Business men
failed by the hundreds every day. Fac
tories closed, Men were thrown out OF
work. Starvation and suffering rap
dly followed.
The stock Of the Tennessee Coal q
ron company was worth 100 cents on.
he dollar FIVE days previous 20 this
line. 1t dropped to Is cents.
Nine Of the guilty wreckers fTotfrF
Wall street went to President Roose
lelt and proposed TO use their power
% stop the panic If he would agree That
hey might take over for the L, 5. Steel .
company the Tennessee competitor, .
which was a violation Of the anti
rust law then on the statute books. AT
irst he refused Bnt after the panic
lad ragged for a short while longer the .
lyenas had another conference with
Roosevelt and he agreed to the propo-
sition. They took over the company
ind its French contract on "A basis of
lSc on the dollar. In five DAYS the
stock was again quoted at 90 cents on
he dollar. They had cleaned UP mil
ions Of dollars and put competitor
tut Of business. but the country was
n the throes Of financial death. Then,
to agreement, these men OPP
sned the credits OF their big banks and
extended relief where they desired to
give 1t. and within few months the
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