Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-12-30
PLEA FOR WALL STREET
MR., SHAW DEFHNDS PRESENT
SITUATION IN NEW YORK.

Spare Wall street" was the appeal made
to Chicago bankers by Leslie M Shaw Sec
rotary of the Treasury, who left that city
last night for Washington.
1.-THE shortness of cash is not confined to
New York, but prevails all through the
country" Secretary Shaw said. 1T Is not
a local but national condition that exists
in financial circles.
when the Treasury Department deposits
money in New York 1t is not benefting Its
friends. the financiers Of Wall street. but
is helping out every man, woman and child
in the country who has dollar to invest
Legitimate business not speculation, has
caused the situation. The money is not de-
manded now on account of manipulations In
stocks. 1t is the natural result Of condi-
lions that prevailed last summer. and OF
mistakes made then for lack Of foresight.
when attended the meeting of the state
bankers in Nebraska last summer they told
me they had sent SIT GOO 600 to New York to
be loaned out. The bankers there felt very
proud OF themselves that they were able to
send such an amount to Wall street where
they could get 1t, as they said, any time we
want it,
A Loaning Epidemic.
"The situation was no different in Nebras-
ka than In other parts OF the west From
all parts Of the country money was being
sent to New York to be loaned last sum-
mer. There seemed to be a national cpl
demic to loan money. Every person VINO
had dollar wanted to loan ito get rid OF
it at almost any price. Money was loaned
at as low a rate of interest as l per cent.
Indeed millions were loaned for less than L
per cent-which In itself should be crime
Now, from all the country these persons
are calling for their money. Crops were
slow this year and ready money Is not as
gc.,y ,fert,f In
banks in turn, are calling In their loans,
and the final call comes with stunning &C
cumulative force on the New YORK banks
1t was to them that the streams of money
flowed during tire summer, and now they
are being called upon to return 1t.
1.-The same condition existed In 1902 The
situation in New York Is little dlnerent
now from what 1t was then. In l9oS the
money lending class had not forgotten the
lesson The New York hanks did not loan
out all they had accumulated from various
parts OF the country. With a $50,0O0,OOO
reserve on hand everything went along
pleasantly through the winter.
The Farmers View Of Situation.
when the farmer reads of Wall street
and any assistance the Treasury Depart
ment may give 1t, he shouts OF stock
spectators and gamblers Is II. any
worse for man in New York to pay
81 600 on SIo0ee worth Of stock than 1t is
for one in Kansas to pay LEGO on "a Ca
madam farm worth $4,000, and expect to
sell 1t at profit before the remaining 5000
Is due? Yet the Kansas farmer dam4,s the
New Yorker who buys stocks, and the Kan
sas banker curses at the Wall street finan-
cier who does not return his money the
moment ii Is called for.
THE only criticism which l have to make
is that the bankers of New York should
not have offered interest on the money
which was sent them and thereby attract
ed 1t from the sections of the country where
it belonged and which are now crying for
it.
Chicago banks and banks in other cities
have sent money to New York and they
should appreciate the situation there