On April 26, 1907, the Jamestown Exposition was opened. It was in commemoration of the first English settlement in America. The southern shore of Hampton Roads, forty miles southeast of old Jamestown, was selected as the site for the buildings. The historic idea was uppermost in the exposition. The colonial type of construction was dominant and good taste and moderation were notable in the arrangement of the grounds and exhibits. Industrial and commercial progress were emphasized. The United States had a special exhibit to illustrate the work of the different departments. In the harbor, one of the finest in the world, was the greatest international naval display ever witnessed. Every variety of war-vessel in existence was on exhibition besides commercial and passenger boats from the great ports of the world. CHAPTER X THE FINANCIAL PANIC OF 1907 [1907] Popular opinion ascribed three reasons for the panic of 1907. The first of these was the attitude of the President toward certain great corporations. It is true that his attacks bared some of the most deeply rooted evils which have always been at the bottom of our panics--dishonesty in the administration of great aggregations of capital. Great were the lamentations and doleful the predictions of what would happen should the President not change his policy of enforcing the laws. The railway opponents of the President were sure the panic came from the Hepburn Bill, which was passed early in 1906. If this had been dangerous to the welfare of the railroads it is reasonable to assume that foreign capital would have been withdrawn from American railways and that American capitalists interested in railroads would have attempted to avert financial ruin by disposing of their holdings. Neither situation developed, for the European investors increased their holdings and American capitalists continued to plan still greater investments in railways. The second general explanation was found in the unsound and reckless banking in New York City. The dangers arising from trust companies had been known for several years. It came to be believed that the deposits in these trust companies were being misused by the bank officers for the promotion of various speculating schemes. The disclosures which came with the investigation of the insurance companies fixed these beliefs more firmly in the minds of the people, and the first break in confidence precipitated runs on the New York banks. The third explanation was that the panic was due to the defects in our American currency system.