The Hocking sentinel. [volume] (Logan, Ohio) 1871-1906, 1902-10-09
IS A PANIC IMPENDING?
Actions of Secretary Shaw Do
Not Agree With His Words.
TALKS TO PUBLIC, ACTS FOB BANKS

It II a great thing to have 4 brilliant
nnancier at the head Of the United
States treasury. President Roosevelt,
for discovering Secretary Shaw's hid
den worth, which was running to seed
In the cornfields Of Iowa, Is entitled to
the thanks Of the nation. Mr.. Shaw II
no ordinary scrub like Gage, who was
much too conservative for this strenu-
Gus administration. Shaw may look
and act like q "c0me on" but he Is full
Of great ideas He is not only IN ex-
pansionist, but an infationist. He il q
Joy to Wall street, which has not seen
his like for many years. He proposes
to help 1t by handing over the cash in
the treasury ON its own terms-that is,
without interest.
1t Is well perhaps to tell what Sec
retary Shaw proposes to do, as d.
yulged to the Associated Press on Sept.
Ii. In the statement it was said: 1.-The
secretary sees in present conditions no
occasion for alarm. He calls attention
to the fact that there Is no evidence
Of q currency famine. present or pro-
spective, elsewhere than In New York,
and even there the rate is not high for
commercial paper. and for commercial
paper he has the greatest solicitude."
It IL consoling that the secretary
..Dees in present conditions no occasion
for ALARM" Yet below this Q copy Of
. letter is given that he wrote to q
bank, in which he gives the conditions
for the issue Of more currency, which
seems to shoW that he is in q state Of
great alarm about the financial outlook
-or maybe it is his extreme solicitude
for commercial paper-for he says:
I'm case OF imminent danger or ac-
tual disaster will be compelled to use
deposits to buy increased
There must be some imminent dan
ger, for, under his orders, the govern
ment printing presses are grinding out
new currency for the banks to the tune
Of $4,000. 900. Now, II there is no I'M
minent danger and no occasion for
alarm. why is the secretary printing
all this extra money, even much be-
yond what the banks have applied for?
Ia he in the same tx that Secretary
Foster was In 1892. when he, too. took
time by the forelock and had the plates
by the bureau Of engraving
md printing for the bonds that the
Wall street bankers were calling ON
him to issue2 Through the good pOlit-
lcal sense Of President Harrison those
bonds were not issued under his ad-
but were afterward is
sued by Secretary Carlisle under the
stress Of the panic which was already
well under way before the Republican
party went out Of power.
What politicians say and what they
know are often vastly at variance.
This is especially true Of the type to
which Secretary Shaw belongs. His
late tariff utterances and his trust con-
clusions show this. Secretary Shaw
has been jumped from q country law
yer and banker into position Of great
His knowledge Of Wall
street and high finance has been at
ong range. He is evidently tickled
with the importance Of himself and
he vast possibilities that the Wall
street magnates have skillfully put be-
lore him. The trust magnates and the
,tock jobbing combines are In a tight
place financially. They own the Re
publican party and seem to have ac-
luired q lien upon Secretary Shaw.
They need cash and the government
has It. What is more easy than to
Icare Shaw into letting them have II?
Dr. maybe there is q quiet understand
ng and he is ready to do their bidding
md participate indirectly in the profits.
The bankers have a great scheme to
help them in getting this money out
of the treasury. Government bonds
ire too high In price and too scarce
10 be easily borrowed to allow them
70 put them up as security for this
new currency. SO they propose to the
to allow them to substitute
tate or municipal bonds as a founda-
don for the issuance Of the cash they
Ire after. This is pretty nearly on a
par with the asset currency plan Of the
Fowler bill. Hitherto government
,onds have always been considered the
,nly securities that the law intended
Ihould be used for this purpose. but
Shaw is evidently bent on
pleasing Wall street or is 50 anxious to
nfate the currency and thus stand OF
| panic that the law and the universal
Usage may be stretched to any length.
When it is considered that the na-
ional banks have for nearly six years
,een allowed to use an average Of
;100.OOO.OOO. on which they have paid
10 interest, the present loans to them.
to over $114.000OO0. is the
more extraordinary.
With a complacent secretary Of the
reasury and Wall street running the
lnancial end Of the administration.
here is no knowing what may happen.
The Houxekeeper Knows.
The good wife never before found u 4
D hard to supply the household needs
rom her hgsbenG'e earninG1 She calr !