The Bottineau courant. (Bottineau, Bottineau County, N.D.) 1895-1929, 1921-10-13
|R. / /. LADDS
| WEEKLY LETTER
(Continued from last weekl

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Continued from last week)
Washington D. G. Oct. 6.
The menace and effects Of this
system, the danger to the general
welfare OF continuing this system Of
Public Finance, is fairly illustrated by
the consequences of its abuse in 1907.
The usual, ordinary and regular prac-
tice eliminated in q perfect example
Of the handmade panic Of that year.
The facts Of that episode in Ameri-
can Public Finance are on unchange-
able and interchangeable record. It was
the year preceding the National cleo
ton Of 1908. There had been several
years Of expanding business following
the shore ~inglorious Spanish War:
large enterprises had been set going
and still larger plans were in tow.
"The Spanish War bonds had pro-
duced a natural initiation of currency
-augumented the volume Of money;
price levels had gradually risen to
keep pace with an increased volume Of
money. The circulation Of money had
increased velocity. An ambitious SOL
.dier of fortune, An adventurer on the
cas- Of politics, was president and
his eyes were fixed on the future.
During his chief magistracy there had
come into being in American indus
try a colossal monopoly in the steel
and iron industry, formed to annul
competition and capitalized on the has
is of tariff and other m%onopolies. This
enterprise, the U. S. S. Co., was under
the control of the masters Of Ameri-
can high finance and National credits.
"The general conditions Of business
prosperity had led Il sthe investment
Of large capital in an iron and steel
enterprise in a section Of the country
outside the control Of the u. s. Steel
monopoly; a section where all the
factors for q successful business Of
fered exceptional opportunities. Ore,
fuel, lime, short hand and more than
these, unlimited cheap and docile la
Dor.
early successes and brilliant pros
poets led to the investment Of addi-
tional capital, borrowed upon a major
ity of the securities of the Tennessee
Coal and Iron company. There were
indications that the operations Of the
Tennessee Coal and Iron Company
threatened to interfere with the pur-
poses of the United States Steel Com
pany to maintain such monopoly
prices, on steel products as would va
.lorize the floods Of fictitious capital in
it's issues. To insure this it required
an impregnable monopoly-just as the
majority Of all American industrial
organizations are capitalized on a
foundation of monopoly and the elm
nation of competition. The President
had chosen his successor for the cleo
ton year Of 1908. The practical"
men, who were the masters Of Amer
lean high finance, had dealt with him
as a practical man on other occasions.
They knew him for what he was; an
ambitious, timid man, and their mast
cry Of the psychological factors of the
program was absolute. As a prelimin-
airy move, and to avoid local suspic-
ion, they developed a business panic
in London. Many drew $125,00O, 900 Of
gold from London banks, this to for
tify their position at home and pre-
cipitate credit disorder abroad. Inter.
est rates in London were raised to
prohibitive figures; tradesmen were
ruined by thousands and tens of
thousands Of working men. and women
were thrown into idleness and acute
distress. Credit restrictions in London
were the excuse for credit restrictions
in New York; and the credit masters
Immediately proceeded to call their
loans, cut off credits and to call their
loans on the Tennessee Coal & Iron
collateral. They pulled the string on
the trap they had baited with the lure
of continued prosperity and cheap
credit. Credit was now unobtainable
at home or abroad. General industry
became involved: the panic was N. A
rush was made to Washington for
help to save the situation. Naturally,
an ambitious and forward looking
President could not permit his admin
istration, his prospects to be stained
by the calamity ofsa protracted period
Of industrial stagnation and a slow
industrial revival, that would hang
over into 1908 to imperil the success
OF his party or jeopardize the execu-
tive benediction upon his favorite for
presidential succession.
There was already $150,000,000 OF
the peoples money in New York
banks, deposited by the Secretary Of
the United States Treasury. This Of
ficial poured $35,OO0,O 900 more govern
ment money into the New York. banks