West Virginia argus. [volume] (Kingwood, W. Va.) 1877-1946, 1902-10-09
wAsHINcToNLerTER.
TIE NEW SECRETARY or TIE TREASURY
Has ALREADY PLlCEDfIB Gov
ERHhEEf'S FINANCES ON 4
wild CAT" BASIS.
Better for The Democrats If They Do
Not Have = MaJsrIty In The Next
Congress.

NOukHcbB
WASHINGTON, OcT., a, 1907.
There is intense interest in Wash
ington today in anticipation of the
conference which the President has
summoned, to occur at the White
House tomorrow, between the rail-
way presidents, John Mitchell. presi.
dent Of the United States Mine
Workers of America, and himself.
The invitations to this conference
were the out come of several con-
ferences held this week and which
were attended by Attorney General
Knox, Postmaster General Payne,
Secretary of the Navy Moody and
Governor Crane of Massachusetts,.
After carefully surveying the situa-
ton, in the light of the special re-
port made by Labor Commissioner
Wright, these gentlemen were unable
to find any ground on which the
Federal Government could interfere.
The Coal mines were construed az
private property and even if the
right of eminent domain could be
called into Yequisition the state of
Pennsylvania would have TO take the
initiative. On the other hand, every
Republican politician coming to
Washington has impressed it upon
the administration officials that il
the strike were not soon ended it
would have a serious effect on Re-
publican success at the fall elections.
1t has so long been a recognized
fact that the Republican party stands
for the capitalists and the vested
interests, that the people naturally
hold that party responsible for the
present condition of affairs. This
serious aspect of the situation has
moved the President to take the
action outlined and it is believed
that the coal operators, while they
are unwilling to yield in the slightest
degree to the mine workers union,
will deem it judicious to do so when
appealed to by the President. They
can then claim that they have yield
ed to the President and not to the
strikers.
I Il
The extraordinary methods pursu-
ed by the Secretary of the Treasury,
in his recent efforts TO relieve the
money stringency in Wall Street,
at the same time startled the more
conservative business men of the
country. By his simple ipse dixit,
Secretary Shaw has entirely departed
from the spirit of the law under
which government funds are placed
in national banks and has complete
ly changed their character. Here
tofore they have been deposits
simply. Under the recent ruling of
the Secretary, whereby the banks
are relieved from maintaining the
IS percent reserve required in the
case of private deposits, and here
tofore required in the case of gov
eminent accounts, Mr.. Shaw has
practically changed the deposits into
loans secured by collateral, consist
ing of U. S. bonds. Heretofore, it
has been the custom to require
deposit as further security, of bonds
to the amount of 100 per cent of the
funds intrusted to the banks. Here
after, Mr.. Shaw will accept securi-
ties consisting of state bonds,
railway obligations, etc. at 6s per
cent of their face value. BY this
means, not only is the security of
the government possibly diminished
in value, but the Federal Govern
ment is made party to various state,
railroad and other enterprises.
Only last January, President Roose-
Welt refused to accept from Mr..
Carnegie bonds Of the United States
Steel company as endowment Of the
Carnegie Institution and now his
Secretary of the Treasury is accept
ing similar, and perhaps far less
valuable securities, as collateral for
government loans. Apparently the
rumor circulated by Wall Street,
that Secretary Shaw was about to
resign, was understood in the Urea
sury and produced the desired effect.
TIT
There is growing conviction in
Washington that the President play
ed very clever politics in Michigan
when he paid certain Difference to
Gen. Alger. Ever since Col. Roose
welt signed the famous Santiago
"Tound robin" which brought such
odium to the Alger administration
of War Department affairs, the Gen.