The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-12-30
SHAW DEFENDS RELIEF POLICY
Says TREASURY NEVER CAME TO
RELIEF OF STOCK GAMBLERS.
10 Was for the Relief OF Business That the
Treasury Restored 20 the channels Of
Trade the Money II Withdrew When
the Business People Had No Use for IL.

Trade the Money ~ WItnureW when
the Business People Had No Use for IL.
WASHINGTON, Dec. ?9.--Secretary Of the
Treasury Shaw has not been oblivious to
the great number Of criticisms that have
Deen passed upon his practice OF frequently
taking measures TO relieve money stringen-
cies in New York and other centres. So
much that has been printed has been called
TO his attention within the last two or three
weeks that when he received the following
letter from NashvillN Tenn. two or three
days ago he decided 10 answer it and %
make the answer public. The Litter he
received reads,
-. DEAR SIR: Pardon this letter. ! hope IL
will receive due consideration If not an
answer. have 30 often noticed the RELIEF
given the stock gambler in New York by
the Government. | do not see what right
the Government has - do This. How much
longer will the I reasury come to the relief
Of the gamblers and money sharks They
are the real Cause of high money in New
York. You know IL Is like this; The big
gamesell stocks. call loans. make tight money;
etocks 20 down, suckers lose, big game make
their millions. | am simply q common every
day man and may be wrong in my conclusions.
but think not. I see they are after you
again. Some people are hard TO please.
With kind regards.
Secretary Shaw's reply follows
p DEAR SIR: Your letter of December % is
received and ! note your sentiments with
regard to stock gamblers. Your letter IL so
courteous and voices so accurately the view
OF many well intentioned people that am
constrained 10 answer somewhat at lon 9Th. n
You seem to proceed upon the theory that
the existing monetary stringency is caused
solely by stock gambling" In this you are
IN error. Some people gamble in stocks.
some in cotton. others in wheat. corn. pork
or lard. and some in land. When times are
good people will speculate In anything and
everything that possesses a market value.
The proportion Of speculation as compared
with necessary and legitimate usmes is
very small, however. and Ia probably no
larger in New York city than In Nashville,
Tenn. where you reside. or in Denison. Ia.
where | live. The best estlmRtes ! can get
place the amount of speculative transactions
In New York city at from 2I to 5 per cent. Of
the aggregate.
The Treasury has never come to the relief
OF stock gamblers and probably never will.
though the relief which the Treasury grants
frequently aids those who gamble on the bull
side Of the stock market and the bull side OF
the wheat market, the cotton market. the corn
market and every other market. but IL is
equally harmful TO those who gamble on the
bear side of these respective markets. Both
bulls and bears importune the Secretary OF
the Treasury, but the nature of the advice
usually indicates the side Of the market on
which they are operating. Naturally these
communications have no Influence whatever.
The real business situation is the sole con-
slderation.
If you will stop to consider you will realize
that more money Ia needed when the crops
are being marketed. when the factories are
filling their warehouses with cotton and wool,
hemp, sisal, lumber and every other material,
than during the summer. when the crops
are growing and when business men are en-
joying their vacations. There are over 5000
banks in the United States doing a commercial
business. These are independent the one
Of the other, and each is trying to make
dividends. Few of them in midsummer
make ample provision for the fall. They
time their loans 80 as TO meet their obligations
and take their chances.
During the dun season Of 1908 the Secretary
OF the Treasury withdrew $40, OOO, 900 of the
peoples money and locked il m. This would
have been a crime If he were not willing TO
release it nov when it Is needed. BY ap-
propriate use Of the money in the vaults of
the Treasury | have facilitated the importa-
ton Of a hundred millions of gold within the
last nine months and have released, or ar
ranged for the release. Of fifty millions more.
This was done, as | say. for the purpose Of
AAAliilk lElAllltlt 'N0lutNNt NiOukl ~ HbN
helped the bull side OF the market as much
as II has damaged the bear side. l care "a
little for either consideration AZ do you. but
/ am intensely interested in the appropriate
business interests Of the country.
Money is scarce. Some Of the very best
business houses In the United States with
international credit are now raging 2 per cent.
interest for money with which to do their
appropriate business. II money could be
secured anywhere beneath the sky for less
they would know I and borrow 1t. II is
for the relief OF business that the Treasury
has restored to the channels Of trade the
money which IL withdrew when the people
had no use for il except for purposes Of specu-
lation. IL was then wanted tor speculation
and l withdrew IL. II is now needed for BUSH
ness and ] restore II. The last slO.O 900, 900
deposit went almost exclusively to the cotton
producing States and the ex ceptions went to
the cotton buying cities. Yours very truly.
l.. VI. SHAW.
$500 $50 1890