The Savannah morning news. (Savannah, Ga.) 1900-current, 1902-10-03
SECRETARY sHAw'S FINANCIER-

Mr. Shaw, the Secretary Of the
Treasury, may find satisfaction in the
praise lavished upon him by Wall
street bankers and brokers and by
some of the organs of the Republi-
can party for his radical change of
policy in the matter of the kind of
security required for government de-
posits. 1t has been only about a week
since he said most positively that he
would adhere to the text of the law
and accept only government bonds
as security. On Tuesday he announced
that he would accept other satisfactory
security. Not only that but he an
nounced that the banks having gov
eminent deposits would not be required
to hold the rs per cent. reserve here
tofore required against deposits. Per-
haps the country will excuse the Sec
rotary for releasing the reserve, but
what will it think of his action in set
ting aside the precedent. long estab-
lished in the Treasury, of accepting
only government bonds as security for
government deposits?
1t may be urged that there are Just
as good bonds as government bonds,
and that such bonds are eagerly
sought by savings banks and life in
surance companies. Doubtless there
are good bonds, but when once the
way is opened for accepting other
bonds than those of the government
it is in the power of Secretary of the
Treasury to accept any and all sorts
of bonds. And there are the finan-
ciers with a political pull; will they
not be on hand with bonds they are
anxious to unload on the government?
1t is practically certain they will, and
it would not be surprising If the Treas
ury should be loaded down with I'M
Desirable bonds if the policy of Secre-
tary Shaw is permitted to stand.
We do not believe of course that
Secretary Shaw would accept bonds
not classed as gilt-edged, but he
might be rnisled as to the value of
the bonds offered as security. He
seems to court the goodwill and good
opinion of Wall street. What more
natural therefore than that he should
accept the opinion of Wall street men
as to the value of the bonds offered
as security for the government depos-
it's? And If he should be able to
withstand the pressure to unload I'M
desirable bonds on the government
might there not be a Secretary of the
Treasury in the near future who would
be more complaisant?
The precedent which Mr.. Shaw has
made is dangerous in the extreme. 1t
will doubtless be so considered by Con-
gress, and that body will. in all prob
ability, take such action as will nullify
his action. That action has certainly
given the Democratic party a tremen-
dous weapon with which to fight the
battle of the Congressional campaign.
1t justifies that party in saying that
at the command of Wall street the
Treasury has been put at the service
of stock gamblers. A party that APP
proves an action of that kind is not
fit to have control of the government.
AS matter of fact there is no scare
ity of money except in Wall street.
The reports from all parts of the coun-
try are to the effect that there is an
abundance of money. Indeed, there is
an abundance of it in New York
for legitimate business. The stringency
is only In connection with stock gam
bling. And it was for the stock gam
-
ury made a ruling that doubtless will
be condemned by every cautious finan-
cier in the country.