New-York tribune., 1907-11-24
MR.. SHAW ON FINANCE.
Causes Leading Up to the Present
Stringency an Money.

Chicago Nov. 23.-Lese NJ Shaw was the prin-
cipal speaker at the dinner of the National Busi-
ness League here tonight. Mr.. Shaw discussed
the recent financial crisis and the causes leading
up to 1t, placing the blame largely upon the people
themselves.
Colonel Robert J. Lowry, of Atlanta. spoke of
The South. It's Development and It's Staple Prod
ucts" Hugh J. MCGOWAN, of Indiana polls dis
cussed '.Interurban Railways" and w. Irving Bah
COCK of New York, spoke at length the ship
building industry.
EX-Secretary Shaw said, in part
The financial and business conditions with which
We are confronted have not resulted from crop
failures. idle factories unproductive Ilines or dis
honest management of business enterprises and
IIHaanclal institutions They are the logical and
ie Inc American people have been living eXtTava-
the East R"idnet in 5S bines uGn 10 b % & s go aS % ~
rule In the agricultural states men have pur
chased lands paying part cash and have felt per-
cent of the prospective vaiGe. city ana Suburban
Pt44peTty has been purchased in the same way
stocks and bonds as investments, but have bor7
lands and mining enterprises have ocen capital
lied, and every locality East and West. North
meicial, industrial and electric railway enterprises
nave nave been projected, and securities thus created
urban communities. Meantime every has de-
se9ero9s Of crcism than % thoSe Se most ggii1y
While all this is true. thoroughly believe The
country has grown in conservatism during the
last few years, and that there are less undisested
financial and business enterprises process of
projection than at any previous time turing the
have enjoyed for ten years necessarily develops
certainly been slowing down for at least twelve
months. These conditions, therefore. IN and of
themselves would have been insufficient to produce
panic. --,-,.-.-,
ratler than caused in the same way that the panic
OF 1898 preCipitated. 1t has been popular for
can business men, their methods and the institu-
tions with which they have been connected With
hOt he
press have WED with magazine writer's, Chautau-
in most sombre coors everything American and
In Eazetting unworthy of confidence quite in
dscrimnately American business men A few
most shameful disclosures have been heid up quite
orally, instead of exceptions. Threats Of criminal
prosecutions of unnamed persons on underlined ana
Naturally, these things have had their influence:
Indefinitely in the face OF universal denuncaton.
and when confidence forsakes us there is nothing
left on which to rest our business and industrial
superstructure.
Lest be misunderstood, I want TO make it clear
grow the lift toward civic and business righteous
Of law which has characterized the administration
3i & fTesideat KooSeveIt am I'm , Gguay CGIn h nm '9t "a.
fects resulting from agitation. reckless legislation,
been unable to appreciate the Presidents pur-
by i1,ifaTinF the weakest rather than the strong
est side of his administration; Tel the American
Improbable investments they will have to stand
laws viii be nrnmpflv enacted limiting their re-
turns and the American people will cease to in
II is doubtful whether the country will take kind
~ to a legalized clearing house certificate After
present Wenigh universal resort thereto. it must
back into circulation, but just the. reverse No
sooner was the clearing house certificate resorted
to than people ceased TO deposit currency. Mer-
chants arc now keeping every dollar Of CurrehcN
they get. They deposit only checks. | fear the
same effect would follow resort to regularly au-
thorized clearing house certificates or any other
novel and unusual form Of currency.
The desire to avoid an element of fear IS the
controlling reason why nave 50 many IhleS az
vocated additional national bank circulation dent-
teed by the government there is no reason why
the public should have notice that a StrinEency
say necessary. So long AS the public needs can
be supplied without endangcrinG any one. no ad-
Neither do believe the country will take kindly
in the hands Of city banks While there is no
animosity between city and country. neither has
neither viii willingly depend upon the other for
deliverance from impending financial dangers.
letter was read from Secretary OF state Elhu
regretting his inability to he present owing 20
the pressure Of state business In this letter Secre
tary Root said:
While the State Department is actively engaged
in many ways and many directions i'm striving to
pry open and hold open the doors for The entrance
and extension easy. do not believe in too much
government The limitations upon what govern
ment effort can DO ana ought !" 30 are very 'I'l,
The real work must be done by the business men
of the United States themselves. The really great
things in this country nave pcen accomplished IN
the true American fashion. by the association or
There is one thing that hope your meeting Will
do-that IS. to make vigorous protest against the
ment makes a large profit by means OF giving the
country cheap and Ineffective foreign mah ser
eral spend the money that he gets from ocean
postage In carrying ocean mails We can nav" Il
and extend their business IN South and Central
America and on the Pacific