Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-12-30
SHAW REPLIES TO CRITIC
Secretary Of Treasury Denies that he
Aided stock Gamblers,
RELIEF TO LEGITIMATE BUSINESS
Plan of Withdrawing Money and
Later DepOsitIng Incidentally
Helped Bulls, but Harmed
Bears.

WASHINGTON. Dec. 29.-In letter to a
correspondent in Nashville, Tenn. secre-
tary Shaw repbdiates the suggestion that
the United states treasury ever has come
to the relief Of the stock gamblers The
correspondent, whose name is withheld, in
sists that such relief as has been given
gamblers and money sharks Is the real
cause OF high money In New York. The
correspondence was made public at the
Treasury department today. The letter
from the secretary reads, in part:
Your letter is SO courteous and voices 50
accurately the views OF many well inten>
answer It somewhat at length.
You seem to proceed on the theory that
the monetary stringency is caused solely by
stock gambling. In this you are in error
Some people gamble i'm stocks, some in
cotton. others in wheat. corn, pork. or lard,
and some in land, When times are good
everything that possesses market value.
The proportion of speculation, as compared
with necessary and legitimate business is
very email, however and is probably no
larger In New York than in Nashville
Tenn, where you reside, or in Denison, Ia,
where live. The best estimates I can get
place the amount OF speculative transact
lions in New York City at from 2h to 8
per cent of the aggregate.
Bulls Aided, Bears Harmed,
The treasury has never come to the relief
PROBABLY
though the relief which the treasury grants
frequently aids those who gamble on the
bull side of the markets, but IT is equally
side. Both bulls and bears imnortune the
secretary OF the treasury, but the real
business situation is the sole consideration.
II you Will stop to consider you will realize
that more money Is needed when the crops
are being marketed, when factories are
filling their warehouses;, than when crops
are are growing and business men are enjoying
their vacations.
There are more than 1900 banks in tho
United States. These are independent, one
q the other. and each is trying to make
dividends. Few OF them in midsummer
make provision for the fall. They time
their loans TO meet their obligations anG
take their chances. During the dull season
OF 1905 the secretary of the treasury with.
drew S16OO0,o00 Of the peoples money and
looked It W. This would have been a
crime II he were not willing to release It
now when II is needed. BY appropriate
use OF the money in the vaults of the treas.
s,y I have facilitated the importation or
months and have released or arranged for
the release of S500O0,c00 more. This was
done, as / say, for the purpose OF aiding
legitimate business. though IL has heIped
the bull side of the market as much as IT
has damaged the bear side. l care as little
for either of these considerations as do you,
but / am interested In the business inter.
ests.
Big Demands for Money.
Money is scarce and some business houses
with international credit are now paying
per cent for money with which to do their
regular business. II money could be se>
cured anywhere beneath the sky for less
they would know II and borrow it. 1t Is
for the relief of business that the treasury
has restored TO the channels of trade the
money which It withdrew when the people
had no use for 1t except for speculation. II
was then wanted for speculation, and
withdrew It. 1t is now needed for busl-
ness. and restore it, The last $4,000 900
deposit went almost exclusively to the
cotton producing states and the exceptions
went TO cotton buying cities.