19 13 Copyright, , B ! A L VA N B ROWN . A 3 B 4 1 2 7 certain ! This volume is published with the intention of arous That persecution will follow is almost a r an d ing my fellow-citizens to a realization of the high But it is a duty which mus t be perfo med can ! s . handed methods pur ued in Wall Street . best be performed by one in my position ! ! h as ! e Twenty years in Wall Street given me ample Wall Street the capitol of our country, b cause n w I , our m opportu ity to gather facts hich hope from time to it governs com erce, industry and finance, and con . time, to make public trols our welfare and destinies . n ! ! It is neither malice nor vengea ce that prompts the Wall Street must have our eyes focused upon it ! bu t publication of this volume, it is done as a service han ds or it will have its tightened upon us . ! ! to society It is treason to Wall Street to make its methods public, but treason is justifiable when committed for k the benefit of man ind . I am fully aware of the seriousness of the assertions x o I contained in this e p sure . am also aware of the power of those against whom the charges are pre ferred . THE FINA NCIA L CONS PIRA C! 190 an d The financial panic of 7 sounds a warning which fear. Industrial and financial institutions will be all must heed and to which none can afford to remain wiped out, labor will be idle and privation and stag indifferent nation will prevail . n ot d It is a warning which un heeded spells disaster and The conspiracy enacted proves, that we are treate ! not c d ruin to you an d me and the nation . equally by the government that we are prote te n It is a warning which makes a demand for serious in our property rights and that our fi ancial, commer e ciel and industrial institutions are in grave peril of att ntion and calls for thorough investigation . ! ! being absorbed by the Money Powers ! that the gov This panic teaches a les son we must all act upon . ernmen t has become impotent in the protection of our F i nn umer The panic is rich in events . rom them property or that it has become the instrument of these b . able, valua le lessons may be learned ! Money Powers . The object of the writer is to review some of the The fin an cial panic of 1907 further d emonstrates events of that memorable panic for the purpose of ! ! t hat with the money trust li es th e power to wi th . proving that they were premeditated, and not accidental , d raw all e a mo e f rom c r ul a on to d en l g l n y i c ti , y as u some wo ld have us believe, that they foreshadow credi t to d e r ve b us nes ns u ns o oo , p i i s i tit tio f their g d d l w f h m m r and orce t e to se out e or f a . grave danger and if repeate wi l again cause distrust ill ll , ge il i a r x To substantiate the assertions made herein, the fol Of ndustrial corporations very st iking e ample lowing facts are submitted in evidence was furnished by the Tenn essee Coal Iron Company . I e th e And, if succe d in arousing public to a realiza It is admitted that the Tenn essee Coal Iron Com tion of this, the greatest moral crime of the century , l pany had in natural resources . It cou d I . d will be amply repaid for my labor not, however, market its securities and was compelle a 1907 r In the f ll of banks and industrial corpo ations to sell to the United States Steel Company for 000 T Of were actually forced into bankruptcy or into the hands . hat is less than the estimate . l al one of receivers its natura resources . Typical of these banks were the following in the City d n ot And this purchase, if so it may be terme , was of New York paid for in cash, but by substituting United States u Knickerbocker Tr st. ! Steel Company s bonds for the stock of the Tennessee n Oriental Ba k . Coal Iron Company . Amsterdam Bank . M ! ! It is important to note that both Mr . J . P . organ Mechanics Traders Bank . Geo and Mr . W . Perkins were and are directors of Williamsburg Trust . the B l United States Steel Company . Borough Bank of rook yn . s d m r b And hundreds of others throughout the nation . So The above fact show hundre s of fir s c um ling d as much for banks, for the present. to ust, it were, not because of corruption or mis ! ! m x d r o or anagement, but because of an e traor ina y spon It is because the Money L rds can afi d to pay taneou s . s demand for cash the best legal talents, that they can purchase the be t Two questions present themselves brains, they are kept informed on how to circumvent ! ! F ! h a ! irst W at caused this sudden dem nd for cash the law . By so doing the Money Lord lifts himself Second ! What caused the scarcity of cash ! out of the criminal class and holds himself out as a ! F The answers are irst, the press notices as will respectable, aye, even a model citizen . be shown in the instance of the Trust Company of By issuing these ! Money ! certificates or money a ! ! a n America, instigated by one of the arch conspir tors, substitutes, the Money Lord gathers and ret i s all . Geo. W Perkins ! Second, the substitute money being legal money . Thereby a scarcity of currency is created w h circulated as ill be evidenced by reproductions of same W en you are hard pressed, and you feel that you s fl u k at the clo e of the book . are sti ed beca se of lack of cash, you now where to ! ! e o n th e This substitut money was issued to the amount of go . The Money L rd knows that it is agai st ! ! o and enabled some of the Money L ords law to charge m re than the legal rate of interest, but ! r n to co ner the outsta ding cash . This was done with he also knows that he may charge a bonus for pro ! ! ff . A nd a total disregard to the consequences su ered by others curing the money or a fee for his counsel . It is a violation of the law to issue money . It is he does . A s n H . illegal to do ma y other things . But law may be cir is activity is like that of the steam roller d cumvented . r t the steam roller moves, eve y hing on its path is crushe fl e d k cas h and att ne . It possesses no feeling, it nows no During that day it payed out in an mercy d heeds no cries . It is cold and hard and the last demand being a check for merc less crushing. You are at the mercy of the y . You Here we have a concern forced into receivership, by ‘ d realize that it is a foul game . Yes, m Moncy Lor y r n . unusual effo ts, by unusual dema ds f le you hold the cards, you shu f them, you hand them Where did the demand for the million and a half own around, you tell us which to play, you make your come from ! It came from the Hanover National Bank, rules, you dictate your own terms . And we obey and MT m . of which . Ja es Stillman was a director And ‘ begin to real ize that your ustice is but a sham and ! Mr . Stillman is no small character ! he is besides director delus ion . h l of t e above named bank, also President of the Nationa b 190 7 k R . In Octo er, , the money situation was such, that City Ban , a ockefeller institution the powers controlling it, probably found that the time It is of importance to note that the New York x a 23 1907 x s was ripe for the e ecution of the pl ns which they had Times of October , , e pres ly states, x E E i i o lo h Kni ckerbocker laid to e terminate the UND SIRABL compet tors 000 , Han over Na t nal check c ses t e in the financial an d industrial fields . Trus t Rumblings had been heard for some weeks and on So far we see in the Tenn essee Coal Iron Com d 22 . October , the storm broke loose pany the Morgan interests at work ! in the Knicker d r . th e o e at The Knickerbocker Trust Company closed its oo s bocker Trust Company, R ckefeller inter sts A k. we . 22d wor Thus far see them at work, separately That same night, October , a secret meeting was . n to we proceed we will also see them at work, jointly held at the Ma hattan Hotel .