salvation is a world-wide peace. And what the world has been suffering from for years is everlasting wars and the many curses which these have entailed, both upon Christian and heathen countries.1

Every man must admit that the first Hague Peace Conference, held now many years ago, broadly speaking, has been a dead failure. For, since that year, almost every country, Christian or heathen, have been engaged in war.

Therefore, in the interests of the peace of the world, let all governments honestly tackle the questions at issue, such as I have brought forward. I am convinced that if this was done and carried out they would be more efficacious as a check to belligerent nations than fifty Hague Conferences.

For, by universally prohibiting "international" "bear" sales in finance and trade, the basis of all financial and commercial conspiracies, as well as of the "daily battles" between "bulls and bears," would be removed, and the latter operators, the curse of the world, would be placed hors de combat.

While, by bankers, financiers, and capitalists refusing to lend money with war for its object, and with "bear" sales on the world's stock exchanges treated as illegal operations, I honestly believe the greatest factors in determining the future peace of the world would be achieved, and that this would promote the world's peace, progress and prosperity.

1 See the late British Prime Minister's menace, page 332.

BRITISH FINANCE UNDER THE INTERNATIONAL "BEAR" OPERATOR.

In the previous chapter I dwelt on the fact that, notwithstanding Russia had been virtually defeated all along the line in the war with Japan, the values of Russian loans and securities had not depreciated to such an alarming extent as anyone would naturally have expected under the combined circumstances of external and internal trouble and chaos. I also gave the reasons for such, and showed how they had been averted.

Now, although Great Britain, like Japan, was ultimately victorious in the war with the Boers, all Englishmen can remember the anxious time that was experienced throughout the country at the commencement of that war, when all was not happy with the British arms. The position of Britain at that period of its war was somewhat analogous to that of Russia.

The result on their respective finances was, however, the same. A financial panic took place in London in 1899, and a similar panic occurred in Paris in 1904. Now what steps did the Russian and French Governments take to stop the latter panic ?

They both took immediate action. They recognised that the first and most important step must be to prohibit international "bear" operations in

Russian securities and that all such operations be treated as illegal.

Russia already had the legislative measures required with regard to that country. France passed at once the necessary legislation. The French banks and investors assisted their government in carrying out every detail of the bill.

The Paris and other banks who were acting for the Russian Government, moreover, taking advantage of the wise legislation of the Paris market, which gives a buyer the right to demand immediate delivery of any stocks or bonds purchased, kept a close watch upon the Paris market and on every opportunity, when they saw a large "bear" account had been opened in Russian securities or bonds, "cornered" the "bears" by demanding immediate delivery, and thus prevented a decline in prices.

And may I ask, in the interests of British and other investors, why should not this wise and honest rule be applied to the British and other stock exchanges of the world? And why should honest investors be in the hands of, and at the tender mercy of, the jobbers and the gamblers on the Stock Exchange for the delivery of any stocks they have purchased and paid for?

Thus every step that could be taken was taken against the international "bear" operator, not only in the joint interests of Russia and of France, but also in those of the bona fide investors of Russian securities, whether these investors resided in Russia or in France.

And the result was, from every point of view, a

decided victory on behalf of both governments against the conspiracies which were hatched by the international "bears" to bring about an international financial panic.

Now let us see what steps the British Government took to avert their financial panic in London in 1899. They took absolutely none. They let national and imperial finance, as well as the interests of the bona fide investors "slide."

And what did the British banks do? Why, the same. In fact, the latter increased the intensity of the panic, for, in order to procure commissions, they encouraged "international gambling" transactions all round, quite irrespective of the loss to the nation as well as to the public at large. This they have continued to do right up to 1906.

And at the various meetings of the Institute of Bankers, held in London, since 1899, all that the past presidents, in their annual addresses, have done, is simply to lament over the great depression and ruinous state of the finances of the country!

For example, the president, on November 1st, 1905, said, "It was a matter of deep regret that there had not been a greater recovery in the price of Consols and other gilt-edged securities, which, having regard to the cheapness of money during the last eight months of the past year, they had every reason to expect.

Exactly so. But ought not the president to have stated at the meeting that during the past few years, international gambling on the London Stock Exchange, as proved by the Bankers' Clearing

House returns, in Consols' and in other gilt-edged securities, had increased enormously? And ought he not to have known that the "bears" have been victorious, with the result, as he points out, "of no such recovery as they had every reason to expect?"

It seems to me that British banking houses and their directors, like many others directly interested in the gambling system, would sooner see the country perish than tell the truth as to the causes which are leading up to it. For they and the capitalists are one, and work hand in hand. Their interests are identical. And so long as bankers can continue to pay their enormous annual dividends, and have their property protected against "bear-sales" by "Leeman's Act," as well as the commodity they hold, "gold," virtually "cornered" all the year round, and on the other hand, the price of silver unnaturally depressed by "international " gambling operations, that such vital questions as the Nation's prosperity, as well as its general commerce and agriculture, are merely secondary considerations in their eyes. Thus proving that "Nelson's" words are, like true patriotism, a thing of the past, when gold, the god of man, is at stake.

It is all nonsense for bankers to argue that their large profits are dependent principally upon good trade. In times of depression, such as we have had for years, all business men are aware that such profits, whether trade be good or bad, are largely

(1) Consols settling days (12), 1905, £638,783,000; 1904, £597,160,000; increase £41,623,000.

(2) See Appendix, Note 9.

G.

S