The Daily News. TUESDAY, DECEMBER 3. FINANCIAL CONVULSIONS.

Taranaki Daily News, Volume L, Issue 61, 3 December 1907, Page 2

The Daily News. TUESDAY, DECEMBER 3. FINANCIAL CONVULSIONS.

Xo matter from what standpoint Anierican linoncial operations ;<r<- vi.'uH. the conclusion* which lone themselves on

Hit' judgment of nil right-minded people can have but little variation in cliur:iot.'i'. Jn tlii' light of recent revelations, it is evident that the demon of greed lias taken possession of ilie linaneial magnates ot the Lnited Stales, ami not only rendered tlieni insensible to all Mi>-e 1)1' commercial morality, bni, wli.it i„ far Will's,.. has eau-'d lliein t.i degenerate iitlo unscrupulous im-tlimls ol lmsine». Their ulle aini ami object appeal's to have been that of aeeiinmlaiing enlo>sal fortunes. It mattered lint one iota to tlieni that ruin, .sull'ering, and loss ol life resulted from the nilward movement of their gilded juggernaut, nor ihut national disgrace "was following in their train. Tile evil grow apace, and millionaires became multimillionaires,. not by those legitimate avenues of eomnieree as u*ed by licmest I men, but by illicit profits upou jiiunieipal management, illicit enhancement of the price of commodities of universal necessity, the employment of money to crush out opposition to their interests and the use of every means that unlimited capital could procure to serve their selfish ends. Commenting on the disclosures made at the Harrinian inquiry in January last, the "Sun," which is usually not unfriendly to corporation interests, said:—''We begin by secret debauchery in business methods. We ! corrupt the common carriers (railways); we buy by corruption infamous advantages over competitors in business; we ruin thousands, and our lust for lawless gain grows by what it feeds on. We retort on the blackmail of legislators bv buying Legislatures, so that the infection of our morals and methods taints the whole body politic. Everywhere the destroying ranker spreads. It invades all ranks, vitiates the moral sense, and distorts the national perspective of right and wrong." The indictment is a strong one, yet subsej quent events have amply justified these j scathing strictures.

The year 1907 bids fair to be a very memorable one in the annals of American finance. Never in the history of that country have so many stupendous interests been brought; to account. President I'oosevelt had the sagacity to comprehend the magnitude of the evil which was threatening to plunge the country into a tinancial morass in which the honour of the nation would be sunk out of sight. Fortunately also he had the courage to attempt to stem the evil, and, with that laudable end in view, to use the le*.',il machinery at the service o| the Administration for 1 lie punii-diniient of those wrongdoers whose deeds are the more reprehensible because <>; not being committed under the stress of want. The process has partaken soipewhat of the nature of a series of surgical operations, in which it was necessary to use the knife freely in order to eradicate the disease effectually. That complications should ensue was inevitable, but, as only drastic means would avail, the sufferings of the few were nceessarv for the welfare of the many. Not for an instant has the President swerved from his attitude towards the Trusts. He stands straight for the rights of tile honest man who wins fortune bv honest methods, just as he stands 'firmly against dishonest methods. Even the'strenuous etlorts made from time to time din-inn-the past few months to induce him not to enforce the law against certain wrongdoers of great wealth because to do K(, would result in a financial panic failed to move him in the least decree' In like manner, he calmly accepted" tho responsibility for the prevailing financial weakness |, n ng partly din- to his admitted intention to punish lar "e moneyed interests which had transgressed the law. though he will not ad nut (hat this has been the main cause of any business troubles, ],„( contributing factor, and an unpleasant yet unavoidable feature in the pursuit of a policy to which he is pledged to adhere.

When ilio present yc;tr opened the iniH'liiiK'ry oi justice was already in motion, and llit' Inter-State Commerce Commission, divided iutu l\vu purls, had set to work in New York and Washington, the former locality being' the scene of investigations into -Mr. Harriinairs high-handed iinancial methods, while in the latter city the subject of inquiry was the then recent terrible railway disasters. Both these inquiries resulted in startling disclosures, amongst which was the fact that Mr. Harriman's unlimited power enabled him to purchase t'20,l)0() ? 0i)u slock of other railways in nix months, and to use the enormous tunds as lie thought lit. The inquiry into the railway disasters brought to light examples of iiieflieent, unheard-of long hours of labour, and carelessness of employees. Experienced railway men admitted that dangerous iinancial exploiting engendered dangerous risks in working to audi au extent that they never felt Mile even when travelling on lines equipped with the block system. Une of the gravest features oi this linancial exploitation ia that it has been carried out in the most unserupulouis maimer, public saiety being left entirely out of tiie question. Xl jius, moreover, been made a dominating factor jn American liuance. bo inextricably have indu&triai and commercial interests Oeen interwoven with railway" operations that practically the control of American commerce has become centred 111 the liands of u few unscrupulous millionaires, who regulate the linancial barometer to suit their own ends. Other matteio that engaged the attention of the authorities were successful proceedings against the Standard Uil Company for taking rebates—the lirst victory for the llailway Late Law; the botith-west-ern light aginst the big iniet; a new inquiry by the Teueral grand jury at .New Orleans; a sweeping JJill against the Standard Uil Company in the .Massachusetts Legislature, together with contests in Texas and .Missouri; an inquiry into the great Lumber Trust; au investigation into the coal combine, to ascertain the cause of the coal famine and of the suffering and loss of iiio arising therefrom. All these formed a K>me\\hat formidable programme wherewith tu start the year, and gave promise of stirring times 111 linancial circles. Cater in th»- year came the long-expect-ed proceeding-, against the persons concerned in the tso-eailed "graft'' scandals at l'hiladelphia, while other investigations and legal proceedings have been set in motion in connection with existing abuses.

It will be pMent to the meanest eon prehension that (lie day or' rcckunin was approaching. and the only qiUMlio tliat demanded serious consideration wa the extent of the price that the oum try must pay lor the financial mi* deedft of the past. A disturbing elemen arone through a heavy fall in the prie of copper, owing to over-production am the very large accumulation of sci'aj metal on order. This of itself would ii normal times have mattered little, Im in view of the greater linaneial upheava it assumed a more important aspect and all'ccted railway and other industria The lime came when the hank'.'; and leading agencies became nervous of ri>k—or were manipulated so as to appear so—and not only called in loans ' hut closed the till against borrower*. The inability of railways to obtain funds for improvements had the. ell'ect of throwing out of employment great numbers of men throughout the enun- ' try. This of course entailed considerable suffering, hut later oil the time came when *ojne of the financial institution* like tlie Kniekorhoeker Trust were attacked, and something approaching ;i panie seemed inevitable. That the worst of a financial erash have been averted i - matter for sincere conjjrai illation. hut the batch of suicide* reported In recent cables gives a lurid side light on the corruptible forces at: work in every branch of American business. The enormous resource* of ilje country fortunately present a barrier to the advent of a crushing catastrophe. There is no quest ion n = to the great middle class df Aniericn being unsurpassed in honesty and integrity by any people in the world. Tliey may lime been led away by a feeling of priilf in their millionaires, hut now (hat the methods wlierchy these plutocrats have amazed their ill-gotten gains have been *n ruthlessly exposed, it U t'> he hoped tint a general desire will he manifested to cleanse Hie country of its evil-, and to give unhesitating adherence to the drastic policy of their heroic TVevidenl by encouraging lionesfy and showing no rjuarler to dishonesty. money i-; available in unlimited for sound investment* is hy the result of the recent !NTew Bond issue; which was over-sub*

scribed to the extent of three hundred million <loII;irs when the internet rnto was raised to four and a half per cent., while railway and industrial corporalions arc una hie to borrow except at cxhorbitant rates, and .sometimes not at all. All right-minded people will heartily endorse the utterances ol' IMr. Kootsevelt that "if righteousness conflicts with the fancied needs of business, then the latter must go to the wall."