The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1903-09-04
BANKS BESIEGE
SECRETARY SHAW.
Many Are Anxious to Help Dis
tribute $40, 0O0,O 900 Emer-
gency Fund.
POLITICAL PULL is USED
Senator's and Representatives
Urge Claims of Their Constit-
uents = Repositories Al
ready Selected Not
Yet Announced.
REPUBLIC

REPUBLIC SPECIAL
Washington, Sept. 8.-since the publica-
ton of the fact that Secretary Shaw has
selected a HIST Of banks to be designated
as United States repositories in the distri-
button Of his emergency fund. many OF
the banks that AVE had applications be-
fore the department. are ~redoubling their
efforts to obtain the desired privilege.
and Others are sending in applications.
All kinds of political influences are in
force, and the Secretary on his return
may find himself in hot water.
In his absence no statement can be OBJ
tanned at the Treasury Department as to
the method by which IL was determined
Just which banks should receive deposits,
but the impression prevails among some
bankers that selections were made in
some cases as a result of influence, and
they are bringing all of the political pres
sure to bear that they can obtain. In
some cases Senators and Representatives
are strongly urging that certain banks be
given deposits.
Just how many banks were selected by
Secretary Shaw before his departure from
washington cannot be definitely stated.
Ap to yesterday the number that had &C.
tually qualified and received deposits was
49, - Az tO-oal thdl liz "a
selected was larger than this. though the
only definite statement that could be OBJ
tanned was that a few banks scattered all
oyer the country had been chosen.
It is said that the creation OF these de-
positories and the slight increase in the
total amount of Government deposits that
VIII be made soon does not necessarily in
dicste any new departure on the part OF
the Treasury Department, but tina these
deposits are sue as might be made at
any time. 1t is further said that nothing
further will be done and no more selec-
lions will be made until Secretary Shaw's
return to Washington.
What the policy Of the Secretary will
then be carnot be f%oretold, but 1T is Ger
tain that the banks expect the policy Of
creating new repositories TO be continued
and that Il will require great fiTmnes on
the part Of the Secretary IL he has made
up his mind TO limit his selections to those
already made.
The banks will be all the more persist
ent In their demands as q result OF their
knowledge that the Secretary has a fund
express purpose Of placing.
When the fact hat this fund had been
set apart first became known it was be
with the affairs of the department that it
would be held intact and that deposits
would not be materially increased unless
II should become apparent that the coun-
stringency with abnormally high interest
rates. But then some of the banks as
stunned that the money was to be put out
at once and began to urge their claims for
part of II.
If the Secretary should determine not
to go any further In the direction of Gre
ating new repositories or IL he should Gre
ate only a comparatively mall number in
addition to those already selected every
bank that has an application In and that
does not secure a deposit will think that
it has been badly treated.
The banks do not now expect the Sec
rotary to stop at the point he haE reached.
They believe that he will continue to in
crease tho deposits and they argue that
the situation OF the country IL such as to
Justify him In doing SO.
According to the bank view of the sit
uation, the Secretary of the Treasury now
has. II In his power to remove all fear of
q tight money market during the crop
moving season. and they commend him
mand for It has become acute and in
level.
The force OF this argument will un-
doubleday be appreciated in many quar-
tiers, but II will not stand in the way of
Democratic criticism OF the ~Secretary's
action: The tendency. Of the Democrats
enues and the placing of the money thus
obtained In the national banks, has al
ready been made apparent, and. even II
the Secretary should go no further thar
that Democratic politicians throughout
charge him with favoritism.
been much weakened II no new de-
positories had been created until there
were more apparent indications tbs a
monetary stringency was imminent.
however, TO the declarations of Mr.. Can
non and others that the West and South
have plenty of money this year and do
not need assistance from any quarter.