THE WALL-STREET PANIC

Auckland Star, Volume XXXVIII, Issue 254, 24 October 1907, Page 4

THE WALL-STREET PANIC

planation,

There is no doubt about the reality of the financial crisis that is now convulsing N ew York and the United States. Even the cabled account of the struggle round the offices of the Ejiickerbocker Trust, -where the leaders of the omnipotent "Four Hundred" who rule American society charged into the throng on their automobiles, striving to force their way to the bank doors, reads like one of the best sensational efforts of Mr. T. Lawson, or the late lamented author of that terrible romance, "The Pit." And, if we need further proof of the gravity of the situation, we may find it in the efforts now being made by the Treasury to strengthen public confidence in the banks by making them large advances to tide them over the critical moment. No doubt, a great deal of the financial agitation from which the American money, market is suffering is due to the ordinary contingencies of world-wide speculative finance. There have been recently! rapid and violent fluctuations on tho London, Berlin, and Paris . Exchanges; and in Wall-street the operations of the all-powerful trusts have frequently been directed deliberately toward the creation of a panic to promote the ambitious plans of Sir. Harriman or Mr, Hill, Mr. Morgan or Mr. Rockfeller. But, after we have made all necessary allowance for such influences, we can still find reason to believe that there is some special cause for the sudden collapse of the New YorE market; and the speech which President Roosevelt has just made in defence of his policy toward the trusts at least suggests a further possible ex-

Six months ago, during the great "slump" which followed the fight between Mr. Harriman and his railway rivals, the heads of Wall-street openly declared that the distrust and uneasiness pervading the American financial world was directly due to their fear of the President. They pointed to the Northern Securities Merger case, the Beef Trust suit, the Standard Oil investigations, the Harriman investigations, and the Railroad Rate Bill; and they plaintively asked how the country's finances could remain stable and secure whUe they were being thus constantly torn up by tho roots. We need not enlarge upon tho utterly selfish and unprincipled nature of the arguments employed by the Trusts. What they ask for is the right to pursue their nefarious plans, absolutely without criticism or hindrance; and if they are threatened with penalties for breaking the law of the land, their answer is a threat to bring down the whole financial structure of the country in ruins upon themselves. The complaint against Mr. Roosevelt, as the "World's Work" puts it, really comes to this, that "he has failed to see in Wall-street anything but a mere part of the commercial machinery of the United States; he has not recognised its prerogatives as God-given; he has failed to admit that Mr. Harriman, Mr. Hill, Mr. Armour, and Mr. Rockefeller are above or beyond the law."

That his resolute determination to enforce the law irrespective of the wealth or social eminence of offenders has had some effect in the way of uhsteadying the country's finances, the President himself admits. But, as his latest cabled speech shows, he is none the less resolved to persevere. The country is sick, and needs to be cured, even if the remedy is painful; and so the policy of the Government will not swerve from its chosen course. One of President Roosevelt's greatest merits is his courageous frankness. Two months ago he boldly defended his policy in almost the same terms as he has just employed at Nashville; and he even charged the great financiers with deliberately working for a panic, so as to cause a public reaction against him. "It may well be," he said, "that the determination of the Government, in which it will not waver, to punish certain malefactors of great wealth, has been responsible for something of the trouble, at least to the extent of having caused these men to combine to as much financial stress as they possibly can, in order to discredit the policy of the Government and thereby to secure a reversal of that policy, so that they may enjoy the fruits of their own evil-doing." But the President went on to say tbat tactics of this kind would never deter him and his Ministers from upholding the law. "I regard this contest," he said, "as one to determine who shall rule—this Government, the people through their Govermental agents, or a few ruthless and determined men whose wealth makes them particularly formidable because they hide behind the breastworks of corporate organisations." We believe that to this question the great American people can give but one decisive answer; and the friends of human freedom and iiuman progress throughout the world will unite in wishing success to President Roosevelt in the great work lie has undertaken.