New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-09-08
SHAW WARNS BANKERS
r. syrs NO SPECULATION.
.sous National Funds Should BE
Tsrd onIy for Legitimate Business

-. SECRETARY Shaw mace
Nas'.''s. circular letter dated to-day anu
pue-. IN rational bank repositories. III N4-ie--
sem :. =, srect- that he expects pubic MONEY
We -.,.,,,, hanks 10 be used IN the coiliiiioI
" !, ts 5enosited. and not loaned thfousA
&c md other agents IN New York Tor spe0-
80 - rYrposes. The letter is as follows
.a,,,sss that many banks. scatteTred
e ~ ne country, are loaning their suI plu ,
$50 through brokers and others "a ,os,7e5
l.'.su N hieh rates OF interest NoI-e3 .Ie,tH-e
% III is well nigh universally for St;5,,aI
OF - recognize the right OF any lh9lN I ,i
pllY.,,lsts IN stocks or IN lands anu - -
" 49, - any bank 10 loan money Al appt a-,-,is
les Of interest al home o. q 80 Il Is being
80 speculative purposes. am loI 20
s.-sv that government money sao5 - hse-
~ ev,av from the locality where u "a a. ,bis
Loess,ss for the purpose OF pells ese1 =, -
aeposie ,hifc deposits are made in ala OF lesllI-
va. .stneSs as distinguished from specu.e' IL,
rls.s o'er rs nature. Depository CITY Jams 81,
ICED 10 loan az regular rates % Ao sgents
~ Ssv must not be tempted 10 aCI az $50
tna ~, - correspondents for other oeposl'oiS
nsse, 4, making call loans az high rates,
Ds. -, have more money than your comm
y so---,-riately absorb please return II 20 tiis
.an apF.' g. n can be promptly placed Where u
lfe~sss-' ,.rch good. This does mol Apply 70
SA co.. large reserves regularly on deposit
,s.S .,ty oorresp onoents-
.s-,,niiion sent out by Secretary shaw 10
lns go hanks cautioning them against loan
re olp,-.sl funds for speculation aroused much
Ns - .-s no little criticism among bankers
s., Numerically opposite views as 10 us
s--s asoacy were expressed, Of which the
--s,-srt sentiment seemed 10 be that IL Was
-, and undoubtedly good for the comm o'4,s'
=. -, liselv 10 be observed. Indeed many 0l-4A-
o. s,ly admitted that they expected TO ger as
f1Tf
ttI ,rs, thew we're neglecting their duty II
80 "a 40 50 Il was generally admitted
us' "a, ,his warning might exercise some
- suasionr on offenders. causing tnein 10 exert
-, IN subsequent transactions
~ bankers questioned TIE propriety OF seore-
=, s,eu's endeavoring 10 check Wild money spec
ul. ~, ,rs efficacy 81 the step was generally
--s.,ss some Of the highest banking officials
- asserted that the Secretary OF the Treas
- sso,-ed an attitude which could not fail
- a Sisrinrt moral effect on those banks
800 are Acknowledged 10 be offenders one ON
sl SIC that Secretary Shaw. through the national
ssrt examiners could obtain details OF al loans
rsss hy the banks. far as the amount loaned
,,s the locality o. the borrower were concerned
and that II the government ofhciss hao any re@s0
= ssnscr that exorbitant rates were being charged
- add demand statistics Of each transaction.
!, a., hank refused the required information the
s..-..srr ,,naolhtedly would Immediately with
a., ,bs government deposits. i Was not thought
,-ctsbs however that such drastic steps would
-. -s,esssrv: in fact. those officials who up
- IA Sbsvfs action professed 10 believe that
- siTrple warning would be sufficient 70 gain the
AZ Erotber group OF bankers the opinion was
rerarlliv EXPRESSED that the proclamation would
sot bFve tie Slightest effect Money, II was argued,
,rrurallv grayitated according 10 the demand. II
-stes were high here nothing could prevent the IN
sou OF money 20 this centre
II a merchant comes 10 me for money. re-
marked one banker 1T IS my duty 10 my STOCK
soder 10 obtain the highest possible rate of inter
a.. and row car M slaW find 0ur what part OF
he money sent New York from the interior
tanks Is government money and what part consu-
utes the banks oRn tundsg
TIE majority 81 tie city's principal banking ON
fas echoed this sentiment and the announcement
,sused scarcely ripple Of excitement on the Stock
Exchange
Cal money opened at - yesterday. but little
before had mounted % i. Al which figure 9
oar q G80OH was made. Loans were renewed Al
2 and y per cent. Ia the afternoon large loans
see made al 8 and j. per cent, and from that The
rate dropped 10 tile close, when the last loan Was
rsae a. . per cent. ar THURSDAY
London dispatches told OF another S.0oo.efo pur
.haEe OF gold from the Bank Of England, which II
al probability viii come under the terms 81 Score
Egy ShaWs offer Of assistance. Bankers here would
r0i announce any intended impCTtations. but OF
Monday II Is expected that wholesale announce
ueHts VII be- put out one well informed banklnI
sh1s said thar he thought the total Importation
sue % Secretary Shaw's OFFER would amount q
tJ1 Sl9o9tJ o. Sa0eFf.eH.