The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-12-29
Secretary Shaw on the Money
Situation.

Secretary Shaw has given out two or
three interviews lately which have had
the effect Of getting himself talked
about in banking circles. The one we
publish today with regard to the situa-
tion in Wall Street adds interest to the
discussion which his recent remarks
have instigated. Mr.. Shaw volunteered
a scheme for increasing the bank circu-
lation which would destroy any evil
dence of difference between bank issues
based on government bonds and bank
issues based on bank assets. He
thought this would be the best scheme
because then the people wouldn t know
the difference between the two kinds Of
notes issued by the banks and would
take them Unfortunately.
Whether Mr.. Shaw was prepared for
the reception which his suggestion met
with or not. the attitude Of a secretary
Of the treasury promulgating a scheme
Of bank issues based on a resort to de-
ception is one which has not been con-
templated with complete Indifference
by business mon Of the country gen.
orally.
Another recent declaration Of the
secretary of the treasury which has
attracted some attention in banking cir
cles is made up Of excuses for Mr.. John
R. Walsh, the Chicago banker who bor-
rowed nearly all the money of his own
bank. Mr.. Shaw, if he is quoted cor
rectly, does not regard that as a very
serious matter, nor does he see any
thing in MIR. Walsh's performances
which other bankers are not, as he saws.
in the habit Of doing. It is needless
to say that there are a good many
bankers in this country who have not
taken this estimate Of their methods by
the secretary with perfect equanimity.
whether the government sees fit to
prosecute John R. Walsh or not. the
bankers will not stand for even an
implication by the secretary of the
treasury that Walsh methods are com.
mon among the bankers Of the country,
While the secretary Of the treasury
has not yet run to the relief Of the
| Wall street spectators and their silent
partners, the Wall street bankers. he
gives out an interview today, published
In another column, in which he under
takes to scold the western bankers fol
withdrawing money so heavily at thu
present time from their New York de
positories. Mr.. Shaw seems to have
forgotten that all this money was &C
cepted from the west on the understand
ing that it was subject to call, and thai
it is now demanded by the Legitimate
business and commercial enterprises O.
the country. Conditions are peculiar
The crop movement has been slow, AM
in consequence Of this, more money il
needed in the west for ordinary liqui
dation than might otherwise be re
CURED. To meet this legitimate de
mand, and to meet the requirements O.
new enterprises and expanding indus
try, the cash of the country has beef
called for out Of the vaults along Wal
street, and as result, the Spectator
and others who have had that surplu
cash to work with, find the supply grow
ing scarce, and prices for call loan
have risen remarkably high.
1 This is a condition, however, whicl
the country at large can view wit
perfect equanimity, for, in spite Of tn
I high prices of call money, stocks hav
not been depressed, and we must b
excused if we suspect that the Who'll
business is a piece Of manipulation o
the market and a bit Of stock-iobbine
. where the professionals are boomin
prices of certain securities by passin
, them back and forth from one to til
other; but the public is certainly no
in this deal and is not vitality inter
ested.
! Meanwhile, if Secretary Shaw think
that the bankers in other parts of til
1 country are going to show any specis