Iron County register., 1903-09-24
SHAW AND THE BANKERS.
Loans More Millions without Inter,
est-The Administration and
Wall Street.

The amateur statesman and financiel
who has been placed by the republican
leaders in charge of the United States
treasury has been adding to the amuse-'
r1ent of the world by telling how he
would settle the currency question and
how he would build up American ship
ping. If theorizing about what he would
do, if he had the power, was all there,
was to laugh about, Secretary Shaw
could go on with his vaporings and no
harm would be done. AS secretary Of
the treasury, he has, however, enormous
opportunities for mischief and his zeal
for the Wall street bankers, born of nu-
merous interviews with the astute mas
ters of finance who control the money
and stock markets, has led him to violate
the plain enactments of congress. Sec
retary Shaw, at the evident bidding Of
the stock gamblers, has been and is do
ing the very acts that the Aldrich bill,
that congress refused to pass, would have
authorized.
That Secretary Shaw is entirely in
SupubiN VI SoilPl Iu6
law that governs the movement of money
is shown by his extraordinary efforts
to increase the currency volume. With
one hand he deposits with the banks the
treasury surplus, and with the other is
retiring circulation, which the banks
find it profitable to do, as the bords that
secure it have so advanced in price that
the banks find it is more profitable to
sell them. The increased premium OH
bonds has been brought about by the
demand for them as security for the sur
plus cash Mr.. Shaw is loaning to favored
banks without interest. So far as in
creasing the money supply goes, this is
merely loaning Peter to pay Paul, the
only restriction being that the retire
ment of bank circulation is limited to
$3,000,000 month.
Secretary Shaw has evaded, if not dis
obeyed, the law that provides for public
money being deposited with banks, by
depositing $2,500,000 with the st. Louis
banks without requiring them to de-
posit United States bonds as security.
In this case he accepted state and munic-
ipal bonds as security and bankers all
over the country are demanding, on the
same terms, their share of the $40 ,000,-
600 that Secretary Shaw says he will
loan, besides the $156,0OO,O0O already
loaned.
1t is rather discouraging to those who
believe in strict construction of the law
in all that relates to the care of the pub
lie money that the evasion of the law in
the interest of the bankers by the secre-
tary Of the treasury is indorsed by Pres
| ident Roosevelt. 1t shows the desperate
condition of at least some Of the banks
that the president has been forced to
yield to their opportunities for help. It
| likewise shows that the boasted inde-
pendence of the present administration
of the money power and Wall street, if
such ever existed, has been adjusted for
political reasons and that the old alli-
ance between the republican leaders and
the banks, trusts and corporations is in
full force and effect. 1t is not difficult
to believe that for these loans, without
interest, of nearly $200,000,000 of the
peoples money, they will return ample
interest to the next republican campaign
fund in which President Roosevelt has
such great personal interest.