Amador ledger., 1906-09-21
Washington
Letter.

tered jolt to the stock market. He
issued notice to all the depository
banks OF the country that they would
not be allowed to loan government
funds on call. This is rather a serious
announcement coming from such
source and at such time. AS mat
ter of fact, there has been a campaign
started for great bull market in
New York. Secretary Shaw recently
made market, and very profitable
market too, for his Panama canal
bonds, by calling In and redistribut-
ing large amount of money in the
depository banks. Now that the bull
campaign is on, Wall street is feeling
the need. of ready funds, and call
money for speculative purposes has
reached an exorbitant figure, tempting
many of the depository banks to make
use of the money in their possession
and reap the large interest that it now
commands. Secretary Shaw's call
down on the banks was as follows:
81 am advised that many banks scat
tered through the country are loaning
their surplus funds through brokers
and others in New York on call at
high rates of interest. Money loaned
on call Is we'll nigh universally used
for speculative purposes. l recognise
the right of any individual to specu-
late in stocks, and the legal right of
any bank to loan money at appropriate
rates of interest at home or abroad Oh
ample security even with the knowI-
edge thBt it is being used for specula-
tive purposes.
Il am not willing, however, that
government money shall be entieed
away from the locality where it has
been deposited to be used in this way.
Public deposits are made in aid of
legitimate business as distinguished
from the speculative, whatever its
nature.
If you have more money than your
community can appropriately absorb,
please return it to the treasury, for
it can be promptly placed where it
will do much good
This announcement had a severe
effect on the market, and call money
promptly fell to 8 per cent.
This will be used by many interests
as further argument in favor of some
thing like scientific system of cur
rency tor this Government. 1t is not
likely that we will ever acquire the
English system with its central
Government Bank, but it is generally
admitted that the present system of
helping the money market depends
entirely upon the personal Judgment
and good will of the secretary of trea-
surer and is not system that can be
relied on in crisis.
The century old question of New
fouudland fishing rights has come up
again with the usual promise that it
is going to be settled once for all |
There has been more trouble than
usual in the past season over the cap
ture OF American fishing vessels whose
status had to be finally settled by
correspondence between the state
department and the British foreign
office. Now the fish commission has
appointed A. b. Alexander as special
commissioner and has placed the tug
Potomac at his disposal for trip to
Newfoundland where he will investi-
gate the problem on the spot. Mr.
Alexander will not start until the re-
turn of secretary Root from his South
American trip, for the secretary will
have to be put in touch with good
many phases of the situation in
order to ultimately carry on his
negotiations with Great Britain.
There might be more expectation
of successful outcome to the
negotiations if it we're not for the
fact that secretary Root is probably
the most cordially hated American
official when it comes to any dealing
involving Canada and its outlying
provinces. The Canadian people
have never forgotten or forgiven his
part in settling the Alaskan boundary
dispute in London, and they will be
exceedingly shy of giving their assent
to any new treaty IN which he has a
hand. Naturally the British govern
ment does not want to anger Canada
any more than necessary, and as they
will not be satisfied with a new
treaty, that falls short OF giving
everything to Newfoundland and
nothing to the United States, the
outlook for an amIcable settlement is
not much brighter than it was
hundred years ago.
The passage of the new rate law has
made considerable work for the inter
state commerce commission. 1t will
make more work before all the con-
stitutional details of the new law are
settled by the courts. There will be
a continual series of hearings lasting
we'll into the spring before the vari-
GUS transportation lines, pipe lines
and express companies all have even
had their first innings. One of the
most curious cases that has yet de-
veloped was a complaint this week
from one Eugene Walker, oS Media,
Pa, who stated that he had been