The Minneapolis journal., 1905-11-20
PRESIDENT AND
SHAW. DISAGREE
Friction Said to Have Developed
Over Government Aid for
Money Market.
SHAW MAY LEAVE THE
y CABINET, SAYS RUMOR
shaw's Position Backed by Stand
ard Oil-President' s by Nor
gan and Hill.
special to Tho Journal.

Special to Tho Journal.
Chicago. Nov. 2O.-In a special from
Washington to the Record Herald, wal
ter Wellman tells of friction IN the
the Morgan-Hill coterie and the Rocke-
feller- CITY bank crowd. He says:
Which is to win at the White House
THE Morpan-Hill coterie or the Rocke-
Teller CITY bank crowd-the bulls or
the bears in the morey market!
Intense interest is felt here and IN
financial circles everywhere. In the
between these rival forces. The Nor
gan people and their allies want the
administration to come to the relief OF
the money market Immediately by put
ting out $25,O00,000 of government
funds to relieve the stress which last
week put call money up to 25 per cent
interest.
Morgan for High Prices.
The Rockefeller City bank people are
opposed to this. 1t is understood that
In a general way the former interests
Teller interests on the other hand think
present prices high enough and that an
end should be put to the boom, which
has boosted values so high. In behalf
of the Rockefeller end, it is argued
that there would be no high prices for
call money and no need of the treas
ury's coming to the relief Of the street.
if conservative banking methods had
prevailed and if financial institutions
had not encouraged speculation in or
der to lend money at high rates. On
the Morgan end it is claimed the high
rates Of money are due to natural
causes. that legitimate business interests
are suffering and it is therefore the duty
of the government to come to their re-
lief. Both sides have brought pres
sure to bear at the White House and
upon Secretary Shaw.
Shaw May Retire.
Fairly well-authenticated stories are
afoat to the effect that serious differ
ences Of opinion have arisen between
9 the president and the secretary of the
treasury, and that the outcome of it all
is likely to be the early retirement of
Mr.. Shaw from the cabinet These
stories are semi-offcially denied, and
yet it is believed there is measure of
truth in them. It is known, for in
stance, that the Morgan people have
upon the president which their rivals of
the City bank crowd DO not at present
possess. For PierpOnt Morgan himself,
the president has a strong personal lik-
ing. There are other members Of the
cabinet who are supposed to be under
the Morgan influence to a certain ex-
tent, not improperly, but thru personal
friendships.
Shaw Is City Banks Friend.
Secretary Shaw is not looked upon as
Morgan man. When he goes to New
York to investigate the financial situa
tion he spends much of his time at the
M
Stillman, president of the City bank
as the greatest banker in America, il
which he may be right. According tt
the secretary of the treasury, who mus
be regarded as pretty good authority
Mr.. Stillman carries on perfectl,
legitimate and conservative bankin,
business. It is notorious in New Yor]
that many Of the national banks ther
are not banks at all, in the provincia
or old-fashioned use Of the word; the:
are nothing but pawnshops. They ar
adiuncts Of Wall street. They do no
cater to commercial business. They sim
ply lend money on securities that ar
in New York claim that they have to g
to Philadelphia, Boston and Chicago
get loans on commercial paper. M
Shaw knows all this and talks about i
and plainly shows that his sympathie
are not with those who would use tn
funQS OF the government TO DOOSC WA
street prices. but that he leans strongl
to the Rockefeller-Standard Oil end {
the contention.
When Nation Should Act.
Secretary Shaw's views as to tt
financial situation in New York an
thruout the country are not secre
They are well known. He told tt
president yesterday that there was NJ
hn irbt tnSt
ment should deposit any more none
in the banks. According to the viev
of the secretary, when commerci
paper is loaned upon at normal rat
of interest and business men are n
complaining Of exorbitant charges f
to sit silent and do nothing. The rat
for call money, used wholly in spec
1ative ventures, do not concern t
government But if commercial loa
soon 90 kiting to high rates it woul
in MI. Shaw's opinion, be the duty
the government to act at once.
The secretary told the president tn
if the government were to put out
large sum of money, the most of
would soon be drained away to Euro1
where the financial conditions are n
good, and finally it is an open sec1
that Mr.. Shaw's attitude as to
duty in the premises is that if
should be ordered to do something
secretary of the treasury which
judgment and conscience did not {
prove, his resignation would be INN
diately handed to the president.
Rulnors Extravagant.
notwithstanding the many rum(
in circulation,s & it is unlikely there
much of any truth in the stories Of
rious differences Of opinion having
ready arisen between the president q
Secretary Shaw. There is little dot
that the suggestion that a deposit
$25,000,0O0 of government funds wol
be godsend to the money market "
made to the president and to Sec
tary Root and very plausible argumel
advanced in support Of it.. But it
going too far to say that the preside
- and Root adopted the suggestion a
had decided to issue an order for
deposit of the money.
According to one story retailed W
good deal of circumstantiality,
president and Secretary Root and
Bacon had come to this definite conc
sion and were stopped only by the v
orous protest put in by Mr.. Shaw