The Nonpartisan Leader Newspaper, September 19, 1921, Page 10

+ " 'The Brief Panic of 1917 r-‘ Leader Reader in Letter Discusses Matter That Has Interest Now DITOR Nonpartisan Lead- er: If you can spare the space I would like to give your readers a short de- scription of the panic of 1907. It was a bankers’ panic of less than 12 hours’ duration, the terrible climax staged on the floor of the stock exchange. How perfect the setting—how real it all seemed, But back of the scenes Morgan and Stillman were in conference. They had made their representations at Washington. They knew when the in- stallment of money would reach New York. They knew just how much it would be. They awaited its arrival and deposit. Thereupon they pooled an equal amount. But they held it. They waited. Interest rates soared. Wall street was driven to a frenzy." Two o’clock came and interest ran to 150 per cent. The. smashing of the market became terrible. Still they waited. Union Pacific declined 10% points in 10 sales. Northern Pacific and other stocks went down in like manner. Five minutes passed—10 minutes passed. Men looked into each other’s ghastly faces. Then at precise- ly 2:15 the curtain went up with Mor- gan and Standard Oil in the center of the stage with money—real money— $25,000,000—giving it away at 10 per cent. HOW CANAL BONDS FIGURED IN DEAL Senator Nelson said in the state of Minnesota prior to the tie-up in New York we had been moving all our crops with western money. It was not until the banks of New York, Chicago and other reserve cénters tied up over $30,000,000 of the funds of our Minne- sota national banks that our local banks were forced to follow suit. The only ‘way the bankers stopped the panic was by breaking the law, sus- pending payments, holding up the en- tire country. Why did the comptroller of the currency fail to comply with the law and put those big New York banks in the hands of receivers to be cleaned up according to law? There was a reason. What was President Roosevelt doing to stop this inhuman, ungodly riot of mammon? The New York banks had secured from outside banks and held in their vaults $40,- 000,000 subject to call according to law, and subject to closure if they fail- ed to respond promptly. Without hesi- tation they, one and all, broke the law and defied the officials who were sworn to enforce the law. They had secured deposits, taxes from the people, free of interest, ffom the federal treasury of $400,000,000, none of which was .called for by the treasurer to help the interior banks in distress. They called on the administration for more help and Secretary Cortelyou responded with $100,000,000 more, and $50,000,- 000- Panama canal bonds were sold and the proceeds turned into the Morgan hopper. These bonds were nat sold to the general public, but sold to the Morgan syndicate, 75 per cent of the purchase price remaining on deposit in their vaults and the remaining 25 per cent was quickly returned by deposit. The Panama canal was not in need of the money and it was not raised for its use. Looks like a misappropria- tion of public funds. Was it? Northwestern bankers were in great distress. ' Senator Nelson and other representatives remonstrated and re- quested that any further funds dis- tributed be sent to those banks, but’ without avail, and Morgan insisted on more money. Seventy-five million-dol- lars in certificates of ind_ebtedness were offered to the public at 3 per cent and $15,436,600 sold and went to Morgan & Co. They had drained the federal treasury and the public to the limit. They had confiscated $410,000,000 of their creditors’ money and appropriat- ed $642,000,000 of the people’s money to the utter demoralization of the busi- ness of the nation. Still there was no protest from the comptroller of the currency and no receiver appointed. It is a fact that President Roosevelt admitted an understanding between the New York money kings, the comp- troller of the currency, the attorney general and himself, which allowed Morgan & Co. to break all our laws with impunity without any fear of justice. Having thus agreed with our highest national officials to ignore the laws of our land, contrary to the Sher- man anti-trust law, they proceeded, after entangling them in the meshes of their panic, to force the Tennessee Iron & Coal company to sell out to them, giving them a monopoly of that business and netting them in that sin- gle transaction a profit of $955,000,- 000, with inestimable future profits through monopoly control. When they had secured all it was possible to grab at that time, the sham battle between Morgan and Standard Oil ceased, and Morgan and Stillman divided equally between them the last $25,000,000 they had squeezed out of the govern- ment and were then acclaimed great patriots for having saved the nation from the panic. This panic was made for the purpose of forcing the presi- dent and congress to allow them to annul or amend the Sherman anti- trust law and for a test of strength and power of the two most powerful Wall street factions. PANICS MAN-MADE— COME REGULARLY The part played in this game by the president and attorney general created such a scandal that a senate commit- tee was appointed to investigate, and -their unanimous report was that the president had no authority to promise immunity from prosecution. (Report 1110, Sixtieth congress.) Now friends, do not harbor the idea that perhaps the panic of 1920-21 is the last one, or that those panics just happen promiscuously. They do not. They are man-made and I can prove it to the world if they ask me to. We had panics in 1904, 1907, 1912, 1915 and 1920. That looks quite regular and systematic, doesn’t it, men and women? For the sake of the. coun- try, for your own, sake and the sake of the growing generation, get busy and help to get away from the control of the rotten politics of today. Rotten ~oliticians and their policies have brought our nation to the brink of de- struction. Wake up, people, and let us change our financial and political systems before it is too late. Get busy and study out the truth for yourselves and do not depend on the average press of the country, 95 per cent of which is controlled by monopoly. JAMES A. McCULLOCH. Fargo, N. D. : YOU GET CREDIT ’ In order to avoid missing issues of the Leader you must renew prompitly. The paper is cut off when your sub- scription ends. If you renew your subscription, you are given credit in Nonpartisan league dues for what you ,pay us for subscriptions, if you later join the League. : The Leader is discontinued when- ever renewal is not promptly made. ADVERTISEMENTS The leader;u'n the dairying world meet Conventions and greet you at fhz’XIational Dairy Cattle u?m i %‘fié'c '"7%5'({0% Lifelong friendshif tvalue o o, |¢¢;glx lleu.’”of‘m value are =1 W’ . ' 1or you i DProbit/ 5% Hundreds of farmers who have seen the' BIG SHOW before will testify that while there they learned things that have made thousands of Ridtavid B i dollars for them. A Remember—you are given the opportunity to All Railroads make friends with other successgll dairy?xvxen and breeders, to learn the results of their best thought and work, and to view the exhibits of profit-making equipment. ; Profit is what the BIG SHOW will mean to el your Friends and A’eaglibors i e e HiwGongode\Norlds Greatest DAIRY SHOW _ Minneapolis - St. Paul - October 8 to 15 THE WORLD’S WHEAT CROP - We have prepared a Pamphlet on this important - subject which will be sent free to anyone upon re- quest. It gives in detail the Production, Consump- tion, Exports and Imports of the various countries of the world which raise, sell and consume wheat. All those interested in this important product, whether producers, manufacturers or consumers, will find this Pamphlet of value in helping them to deter- mine what the price of Wheat should be this crop year. CHAs. E. LEWIS & Co. MINNEAPOLIS ' DEALERS IN CASH GRAIN AND GRAIN FOR FUTURE DELIVERY STOCKS - BONDS MEMBERS NEW YORK STOCK EXCHANGE ALL LEADING GRAIN EXCHANGES Work Shoe Sensation! AN*-ABSOLUTE $4.00 VALUE $1.98 SEND NO 1 wr MONEY on arrival Limited Quantity—Order Quickly! We want a thousand new customers at once, hence this extra liberal otfer. A eplendid black. all leather work shoe (cost $2.92 to manufacture), made of specially tanned leather, with double sole and dirt-excluding bellows tongue. You have nevey been able to buy a better work shoe for the money, not even before the war. * Send no money. Just pay the postman $1.98 plus postage when they arrive. Then examine them and if you don’t feel that they are worth $4.00, send them back and we will refund your money. You don’t risk a penny. Be sure to state size. GORDON BATES SHOE COMPANY 221 Nicollet Ave. MINNEAPOLIS, MINN. STOVES R E PA I R S Fognd%mm‘fibggg we will. supply REPAIRS and PARTS. 19 S. Third Street U. S. STOVE REPAIR CO. . Minneapolis, Minn, . PAGE ELEVEN s Mention the Leader When Writing Advertisers AN “—-—wmw-’:‘d A R O Y SR AR SO AP i S w e