%586. The Panic of 1907.%—For several years our country had enjoyed unusual prosperity. Never had the business of the country been better. A distrust of banks and banking institutions, however, was suddenly developed. Belief that the money of depositors was being used in a reckless way became widespread, and when a run on some banks in New York city forced them to suspend, a panic swept over the country. People everywhere made haste to withdraw their deposits, and the banks for a time were forced to refuse to cash checks for large sums. Business depression and hard times followed.
%587. The Currency Law.%—In the midst of the panic the Sixtieth Congress met and in the course of its session enacted (for six years) a currency law. This is an emergency measure by which the national banks, when currency is scarce, may issue more under certain conditions. The total amount put out by all the national banks must not be greater than $500,000,000. Those using this currency must pay a heavy tax, which it is believed will lead to its prompt recall as soon as the emergency has passed.
%588. Election of Taft.%—For the thirty-first time in our history electors of President and Vice President were chosen in 1908. Seven parties placed candidates in the field. The Republicans nominated William H. Taft and James S. Sherman; the Democrats named William J. Bryan and John W. Kern. Candidates were also presented by the Prohibition, Populist, Socialist Labor, Socialist, and Independence parties. In many respects the Republican and Democratic platforms were alike. Both declared for revision of the tariff, postal savings banks, a bureau of mines and mining, protection of our citizens abroad, a better civil service, improvement of our inland waterways, preservation of our forests, and the admission of Arizona and New Mexico as separate states. The Democratic platform called for an income tax, the publication of the names of contributors to national campaign funds, legislation against private monopolies, and full control of interstate railways. Taft and Sherman were elected.
One of Taft's first acts as President was to call a special session of
Congress, which met March 15 to frame a new tariff act.
[Illustration: William H. Taft]
SUMMARY
1. The political issues before the country since 1880 have been of two general classes—industrial and financial.
2. The industrial issues led to the formation of certain great organizations, as the Farmers' Alliance, Knights of Labor, Patrons of Industry, etc.; and to the enactment of certain important laws, as the Interstate Commerce Acts, the Anti-Chinese laws, the Anti-Contract Labor law, and the establishment of the Labor Bureau.
3. The financial issues were in general connected in some way with the agitation for free coinage of silver.
4. These issues seriously affected both the old parties and produced others, as the Anti-monopoly party, the People's party, the Silver party, the National, the Socialist.