Rock Island Argus., 1903-10-03
SHAW AND THE BANKERS
The Secretary Loans More
Millions Without Interest.
FAVoRITEs OF ADMINISTRATION.

Backed by President Roosevelt.
Old League With the Money Power
Once More In Full Force and Eff
feet.
The amateur statesman and financier
who has been placed by the Republic
an leaders in charge Of the United
States treasury has been adding to the
amusement of the world by telling
how he would settle the currency ques
ton and how he would build up Amer
what he would do, if he had the power,
was all there was to laugh about, Sec
retary Shaw could go on with his va
pOrings 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 numerous in
terYiews with the astute masters of
finance who control tie 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
doing the very acts that the Aldrich
bill that congress refused to pass would
have authorized.
That Secretary Shaw is entirely in
capable of cOmprehending the simple
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
bonds that secure it have so advanced
in price that the banks find it is more
profitable to sell them. The increased
premium on bonds has been brought
about by the demand for them as Sc
curity for the surplus cash Mr.. Shaw
is loaning to favored banks without
interest. So far as increasing the mon
ey supply goes this is merely robbing
Peter 10 pay Paul, the only restriction
being that the retirement of bank cir
culation is limited TO $3,OOO,OOO a
month.
Secretary Shaw has evaded. If not
disobeyed, the law that provides for
public money being deposited with
banks by depOsiting $2,5O0,000 with
the st. Louis banks without requiring
them to deposit United States bonds as
security. In this case he accepted state
and municipal bonds as security, and
bankers all over the country are de-
manding, on the same terms, their
share of the $4,000, 900 that Secretary
Shaw says he will loan, besides the
$156,00O,O0O already loaned.
1t is rather discOura ging to those who
believe in strict construction of the
law in all that relates to the care of
the public money that the evasion of
the law in the interest of the bankers
by the secretary of the treasury is in
dOrsed by President Roosevelt It
shows the desperate condition of at
least some of the banks that the presi- |
dent has been forced to yield to their |
opportunities for help. 1t likewise |
shows that the bOastCd independence |
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 these loans. |
without interest. of nearly 5000. .OOO. 900 |
of the peoples money will return am |
pie interest to the next Republican |
campaign fund, in which President |
Roosevelt has such great personal in |
terest.