THE FINANCIAL CRISIS.

Taranaki Daily News, Volume L, Issue 61, 12 October 1907, Page 3

THE FINANCIAL CRISIS.

WALL-STREET LOSSES. OIL MAGNATES~tOSE £200,000 A MINUTE.

„„ ~~ „ Kcw Y <>rk, August 12. Mr Rockefeller and his associates lost n-oney at the rate of £200,000 a mi,' -I> emulsions of liquidation. Durae opening half-hour Standard Oil "» >< Pomts below the level of Satm (h >< »>«k»>S a Utal drop of 50 DO i,s or ;m r • ~' points, vilne '!,f h ll " mmit '«» In the stock sice th. • C °.- lpa " y 0f £W.000,OI)O "jKt the „, n „ ;hou of tho :CSS4S ; O()O All the standard securities shared in demoralisation of the market, which «as accentuated by the definite annouiicement irom Washington that the Attorney-General, Mr Bonaporte, has appointed September 5 as the day on whin, will begin the taking of evidence in the suit brought by the Government for lh= absolution of the Standard Oil

It is undoubtedly the crusade against Standard Oil, combined with the a» gressive attitude of the States of North Uuolina, Alabama, and Michigan, that was responsible for the most acute muni.(-stations of to-day's panic, since the announcement passed almost without comment that the Government is mediating a fresh effort to force Mr Ilarriman to answer the questions of the rnter-Rtate Commerce Commission regarding the personal connection of the I mted Pacific directors with the company's stock operations. A hanker whose name, which I am not allowed to give, is a household word in Europe, gave me his views, as fol-lows:--There are three factors in the situation: the first, a general fear of a srt-lv ■- m business; the second, the .-utiti :!■ of the various Governments, State and national, against the Trusts; the third, money stringency. As to a set-back in business, that undoubtedly will come—Die sooner the better in my opinion, since we cannot have a return to normal conditions until the demands which business has been making for the supply of capital are reduced. There I look forwards to a retrocession of business as a helpful factor.

_ "As regards corporation-baiting, I believe that a climax has been reached and that we may look to the higher courts for decisions that will modify the impression created by the verdicts of Kadieal judges. As to the money stringency, while it is extremely difficult to make a reliable forecast, in view of the low state of the bank reserves, still it quite possible that, just because everybody is looking for a storm and is prepared for it, Hie conditions may not become so critical as is feared.

"In my opinion the difficulties are more than sufficiently discounted by the present state of the Stock Market I am convinced that the situation is mevly temporary. This country has been so bountifully blessed by Provithat even politicians cannot ruin it. The man who buys railroad sccuri ties at the present prices and can hold them, stands, in my view, to win a great deal of money."