The independent., 1903-01-29

| Wnen 1t is nuTt, 1t KNOWS LndL the
situation in New York is critical, and
foresees< that "some fine morning
something may happen. But not
knowing, or not caring, what has pro-
duced the critical situation that is. SO
threatening, but only caring to secure
little temporary relief, it says: s
Meanwhile, Secretary Shaw has
chance of making a name for
himself by simply doing what any
conservative, self-reliant business
man ought to dO-lend money on
any good collaterals offered. Ev-
|, cry serious business man is
watching Mr.. ShaW's action with
unusual interest, and it remains
to be seen whether he will use
his opportunity
This proposition to loan government
funds for the benefit of stock gam
blers, stated in such plain language,
and violating both law and common
sense is doumbfounding. 70 whom is
it thought loans ought to be made?
What is thought ought to be the terms
of the loans? The language indicates
that this editorial paragon of finan-
cial wisdom thinks that Mr.. Shaw
ought to loan to any business man
who furnishes good collateral. This
proposition to convert the funds of
the government into loan fund
ought to have been accompanied by an
apology to the farmers alliance
But after all what has Mr.. Shaw
done? Between September Is and No
vember Is, 1902, he loaned to the ma
tional banks $23,000,0O0 of the money
taken from the pockets of the people;
how much since that time | cannot
tell until the next report of the comp
troller of the currency is issued. These
banks now hold loan of government
money amounting to about $3.50, ,000,-
600 made to them by Mr.. Shaw and his
predecessors. The fOrty-six New York
national banks have almost s50,000,-
600 OF the peoples money. No inter-
est is paid the government for these
deposit loans. This money of the
people is, in large part, being loaned
by banks to stock gamblers at heavy
rates of interest.
What this editorial says Mr.. Shaw
ought to do has been done by Mr..
Gage, and continued by Mr.. Shaw, al
most to the limit of the governments
capacity to loan. 1t is not only what
The Commoner calls "a sentiment
that prevails among fnanciers," but
an existing fact of financial conditions.
The November debt statement on page
1906 of the monthly summary shows
the amount of available funds in the
treasury exclusive of the bank de-
posit loans) to be reduced below S56.-
100000. At the rate Mr.. Shaw has
been increasing these deposit loans,
how long will this available sum last?
Another very important question is.
how long will it he before Mr.. Shaw
will dare call in these deposit loans
OF the peoples money.
Read little more of this editorial:
The whole business community
will be made rich or poor accord
ing to the way the funds of the
United States treasury will be
handled this fall. The money be-
longs to the people; they need it;
and we think they will get it,
SASASS w IhC pCCp1C, uOcS IL. IL
the people need it SO badly, why was it
taken out of their pockets by duties
upon prime necessities Of life? If this
indirect taxation gives the government |
so much more money than it needs
so that Mr.. Shaw can loan the banks |
50,00O,0OO without interest-and the |
people need it," why take it away |
from them to be returned to them bv |
the banks at high rate of interest?
Has it ever occurred to either re-
publicans or democrats, who are ex-
pecting revision of the tariff sched |
ules, that it is not only the selfishness
OF manufacturing monopolies that
stands in the way of it, but the bank
ing and financial interests as we'll? |
There will be less opposition from
and manufacturing inter-
ests to a reduction of import duties |
than from the financial interests that |
have control of the national banks
east of the Alleghenies.
If import duties are reduced, Mr. |
Shaw will not only not be able to |
make further deposit loans, but will |
be compelled, for current expenses IN
take out of the banks the deposit |
loans already made. The republican
party will stand pat" on the present
tariff schedule because the fnarnio1