New Mexico state record. (Santa Fe, N.M.) 1914-19??, 1917-03-02
'BLUE-SKY-ISM' AND MINING

Competition among the purveyors of in
vestment opportunities excite class jealousies
and sectional ill-feelings. Mr.. Untermyer, of
pujo-listic fame, once declared that the five
years following the panic of 1907 had wit
messed d greater concentration of control over
the credits of the United States than all the
previous history of the nation. Thus, within
a few years, if this statement is correct, there
and a struggle for the domination of Ameri-
can investments that never was felt before.
Naturally the assumption of dictatorship has
centered in New York and the other large
cities of the East, if we view the matter geo.
graphically. In a categorical sense, the dc
tatorship has conferred in the hands OF those
who profess to deal in the securities of fixed
enterprises. That which has been long estab-
lished resists the development of that which
is now only an aspiration. Fixed capital fears
innovation, epoch-making invention and revo-
lu%tionary discovery. Only such change as re-
presents a natural accretion to the established
plant enjoys the welcome of the plantowner.
History emphasizes the truth that entrenched
power, whether of a political, military or
economic nature, resentS any influence which
disturbs its gradual capitalization. "Blue-sky-
ism is one of the manifestations of this re-
sentiment, appearing in the modern financial
world, where the entrenched power takes the
form, chiefly, of banking capital. COMPETE
ton for the control over the savings of the
people, over the investment of surplus incomes,
has inspired that widespread movement for
"blue-sky" legislation which now
seems to be playing out because of the funda-
mental weakness that it is contrary to the A.
sense of personal freedom. The latest
'blue-sky" law to attract notice to itself is
that of South Dakota, which has been pro-
nounced unconstitutional by a federal court
of appeals. Throughout the country the free
of the people to invest their surplus in
without interference has been u~njustly
assailed by the apostles Of safety 1irst" in fl
nance. The assault has not been inspired by
patriotism or love of humanity, but rather by
the desire to concentrate all investment
in low rates Of interest, in securities
a large and highly organized fraternity
Of investment bankers" hold for sale. No
one need be surprised at this tendency toward
absolutisnl, because it is historically
natural. Neither should the absolutists be Of
ended if the developers Of new sections of the
eilot'u iCVoil against lIlelIl dHu HSlSl up
IN the original freedom of investment to which
American citizens are entitled. There are many
who prefer the new hazards and the broader
chances which belong to the undeveloped
and unestablished industries. New
inning ventures are among the chances
by the investors of surplus incomes.
When a movement in mines is in progress it
S because the country is prosperous and a
arge part of the people aspire to participate
Il the constructive work of mine-n aklne. 1t
right and proper that the money of the peo-
lie should enter the field OF pioneer eff ort and
to erect the new empires of the West.
t is the spirit of such people that resents
blue -sky-ism."-Mining American.