The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-10-29
SHAW ENTERS THE
SECOND DISTRICT
Secretary Of the Treasury to Make
Two Appeal S for Nc
Cleary's Reelection.
ABSOLUTELY MUM AS TO
HIS OWN ASPIRATIONS
Defends His Policy Of Handling
~ubic Funds on Which Banks
Pay no Interest.
Special to The Journal.

Special TO The Journal.
Mankato, Mimi, Oct. 29-Coming to
the assistance of his friend, Congress
man McCleary, Leslie NJ. Shaw, secre-
tary of the treasury, arrived in Manka-
to this morning to deliver speeches for
him in the second congressional dis,
trict, one at Elmore this afternoon, ana
one at Winnebago tonight. The secre,
tary seemed surprised when Informed
of the closeness of the contest now rag
ING in this district in reply to his ques-
ton as to whether there seemed to be
any real danger of McCleary s deteat.
As to his own attitude toward the re.
vision of the tariff and how he could
take the stump in Iowa for governor
Cummins, a leader in revision sentl-
Ament, Mr.. Shaw said he would make
this plain in his speech tonight. Asked
as to his presidential aspirations, he alb
solutely declined to make statement
for publication. He does not expect
to have anything to say on this sub]ect
until after he retires from the secre-
tarvship of treasury on March 4th next.
IF time demonstrates that there is some
real Shaw sentiment in the country he
NAV be persuaded to acquiesce and
emerge from the private life to which
he expects to- retire.
Secretary and the Banks. >.
When asked about his recent facilita..
tion of gold imports and deposits OF
interest, Mr.. Shaw explained, by saying
that congress had had the question OF
charging interest on deposits before 1T
and had threshed it out at length. 1t
was demonstrated that the banks could
afford to paw interest if they did not
have to put up bonds as security, but
they could not both furnish security
and pay interest. :,
> "'For instanee,'' said he, eff bank
is to receive deposit of 100000 Of
public money, it must secure the same
by the deposit Of like amount of gov
ernment bonds, or 10 per cent larger
amount of state or municipal bonds. 70
buy these securities will take from
be seen that the bank could loan all of
this 100000 or $125,00O, if it did not
take the government deposit, but if it
takes the government deposit it must
hold in reserve and idle at least, Is per
cent against the deposit or, if it hetsa
reserve city, it must hold % per cent
of the deposit idle. Having 1000
available for loaning, after getting the
deposit it has less than $4,000 to loan.
Some Banks Declined. .
"But [ need not discuss that; con-
gress had the matter before 1T and
could have changed the law if it de-
sired, but did not. will only say that
several of the banks to which deposits
were offered declined to take them even
without interest. .......:.-...
cit is surprising that anyone should
complain of the importation of this
gold More than ten carloads, $780,
100000, were brought from Europe and
Australia without expense to the gov
eminent, and it all entered into the
channels Of trade in the United States.
TO say that this affected only specula-
ton is to confess one s failure to under
stand the situation. Of course, it af-
fected speculation in wheat, and corn
and land, and everything else, but by
and land, and everything else, it af-
fected business Of every description.
'Speculation in railroads is just as
legitimate as speculation in land. When
money is scarce those who have pay
ments to meet on land, or on stocks anC
bonds, or for material to use in the
factories, all feel it, and when relief
is granted they all feel that.
Where the Money Went. $. =
81 deposited $26,OOO,OoO. Of this
gave New York city $3,OOO,OO0, Chica
go $3,0O0,000. St. Louis 100000, New
Orleans $2,OOO,O00, Minneapolis $500,
900, st. Paul some, forget the amount
waukee, and all over the country. Oh
course, the Hearst papers contend tina
depositing public money at Minneapolis
and Sioux Falls was done in the inter
ests of Wall street. The only surpris
ing thing is that an effort should b.
made to get the people of Minneapoli
and Sioux Falls to think the sam
thing.
Saw the Need.
cit is due to say, however, that n
effort was made to relieve the stu;
tion until business men, manufacturer
merchants, builders and others bega
to complain that they were compelle
to pay excessive rates of interest.
keep in touch with the whole countr
and try to do what I shall again tt
to do if the occasion requires it,
steady conditions. During the summe
when money was excessive and spec
lation was thereby invited, I withdre
money from the channels of trade al
locked it up. When it was needed
released it. -
"More grain sacks and more freig
cars are used, more checks are draw
more drafts issued, more money pa
out, more carried in the pockets OF tt
people in the fall and winter than
the summer. I therefore lock up none
that is not needed in the summer al
stop speculation, and put it back
help business in the fall.'' 81,
Speaks to School Children.
Secretary Shaw spoke to the studen
of the high school three-fourths of /;
hour this afternoon.