The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-11-10
A Puzzle for Secretary Shaw.


and sent rumor chasing thru the fnan-
cial district. Secretary Shaw, seeming
trouble in the hardening rates of the
day before, came over to the New York
subtreasury, looked into the situation
from that point Of vantage. and also
discussed matters with some prominent
bankers. .n =,
This is hard proposition for MI.
Shaw, who no doubt desired the closest
insight into conditions. Tight money
in the country over, and tight money
in Wall street, are very different propo-
sitions, altho the relationship is under
stood by majority of the intelligent
people. ..: 49,
The trouble with Wall street is that,
while it is a great money center, serv-
ing an economic purpose and handling.
a daily volume Of millions, in straight.
legitimate business, it is also center
for stock gambling, bull and bear cam
paigning, market manipulation and COM
mercial immortality. 1t is baser ele-
ment,: found operating as a part Of the
speculative division of the Stock ex-
change, that gives Wall street it's bad
name. '.t
Money goes up when the banks call
in their loans. There is legal limit
to interest charges, but when money
gets scarce. buyers pay premiums to Sc
cure it, and thus loans are made that
carry considerations equivalent to TO-,
20 or even 80 per cent, and so call
money is quoted.
The theory is that the banks need the
money to send into the interior to help
the country move the crops and carry on
business. Millions Of dollars do come
out of New York every year for this
highly legitimate purpose. The west
makes it's regular boast Of financial in
+; dependence every year, just before crop
moving time, but always, sooner or
later, there is a heavy drain upon the
east. The west becomes richer every
year, and has more money in it's own
hanks, but it also grows rapidly, it's
business expands, and money require
ments increase.
When money tightens in Wall street
it is not always safe immediately to
quirements Of the country have done it.
There are groups of banks in New Y orl1
. so powerful that by concerted action
in the matter of calling loans, they can
Enn rates up at times like the present.
When they do this, announcement al-
ways follows that the conservative men
are opposed to speculation, and are
III, tp a1,a ~ Vot
street live entirely from the revenue
of speculation.
The position of the secretary of the
treasury is not an easy one when these
money furries come on. If he is 8
man who entertains 30 ambition be-
yond wise administration of office, he
jumps in, uses his best Judgment and
the great discretionary power allowed
him and handles the situation vigorous
ly, even straining the law beyond its
strict letter in case of emergency The
position requires a man capable of tax
ing hold without gloves. =. ,..-
Those to whom the call-money rate
Is vital consideration, would like to
see Mr.. Shaw put $25, 100000 of govern
ment money into the New York banks
to help out, but others feel that, since
the country at large is as yet unaware
of any money stringency, such action
would be premature. Mr.. Shaw has
apparently arrived at this view of it
for he has taken no action to this time
It will not do for a man who looks
forward to being a candidate for tn,
presidency to get too chummy will
Wall street, for, while it is true tina
the old-time rural voter who viewed
the speculative center as the home OF
the evil one, is passing, there is still
an important element that sees the DARK
side, and refuses to give Wall street
that recognition Of legitimacy to which
it is entitled. Yet no man holding the
important office of the treasury can bt
unmindful of the pressure from the
street, nor would he dare ignore the
New York call for money and stano
responsible for possible stock -marke
panic and its results.
The situation is one in which a. mar
who expects one day. to stand before
all the people for their votes, may max,