Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1907-01-04
SHAW AND THE GAMBLERS.
Sensible and Interesting Letter From
Secretary OF the Treasury.

E
Sensible and Interesting Letter From
Secretary OF the Treasury.
The suggestion that the treasury de-
partment sometimes affords relief to
the stock and other gamblers Of New
York city is an imputation which will
not be tolerated by Secretary Shaw.
who Is soon to relinquish his cabinet
position for private life. Yesterday,
in answering a letter of correspond
ent residing in Nashville, Tenn, he
seized the opportunity to explain the
difference between stock gamblers and
just plain ordinary gamblers in cot
ton, corn. wheat, pork and lard, and
declared that the treasury had never
come to their relief and probably
never will.
When times are good. the secretary
informs his correspondent people
will speculate In anything and every
thing that has market value, but the
proportion of speculation, he says as
compared with legitimate business. Is
small, being no larger in New York
than it is in Denison, Iowa, where he
resides.
Secretary Shaw's correspondent
boldly asks the question how much
longer will the treasury continue to
come to the aid Of gamblers and mon
| ey sharks, to whom he attributes the
real cause of high money In New
York. The letter reads:
Pardon this letter hope II will
receive due consideration. If not an
answer. / have often noticed, the re-
lief given the stock gamblers in New
York by this government. do not
see what right the government has to
do this. How much longer will the
treasury come to the relief Of gam
blers and money sharks. the real
cause of high money in New York.
"You know it is like this: The big
game sell stocks, call loans, make
tight money, stocks go down, suckers
lose, big game make their millions. /
am simply a common everyday man.
and may be wrong In my conclusions,
but ] think not. I see by the papers
they are after you again. Some peo-
pie are hard to please"
To which the secretary made the
following reply:
your letter Of December % Is re-
ceived, and I note your sentiments
with regard to stock gamblers. Your
letter is so courteous, and voices 50
accurately the view Of many well-in-
tentioned people, that am constrain-
ed to answer 1t somewhat at length.
"You seem to proceed upon the the
ory that the existing monetary strin-
gency is caused solely by stock gam
bling" In this you are In error. Some
people gamble in stocks, some in cot
ton, others in wheat, corn, pork, or
lard, and some in land. When times
are good people will speculate in any
thing and everything that possesses
market value.
"The proportion Of speculation as
compared with necessary and legiti-
mate business is very small, however.
and is probably no larger in New York
city than in Nashville, Tenn, where
you reside, or in Denison, Iowa,
where I live. The best estimates
can get place the amount Of specula-
tive transactions in New York city at
from "a to per cent Of the aggre-
gate.
The treasury has never come to
the relief Of stock gamblers, and prob
mil thnu0h tho rQltQf
which the treasury grants frequently
aids those who gamble on the bull side
of the stock market, the cotton mar
ket, the corn market, and every other
| market, but 1t is equally harmful to
those who gamble on the bear side Of
| those 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 COM
munications have no influence what
ever. The real business situation Is
the sole consideration.
IF you will stop to consider, you
will realize that more money Is need
ed when the crops are being market
ed, when factories are filling their
warehouses with cotton, wool, hemp,
sisal lumber and every other material,
than during the summer, when the
crops are growing and when business
men are enjoying their vacations.
There are over $1,000 banks In the
United States doing commercial
business. These are independent, the
one of the other, and each Is trying to-
make dividends. Few Of them In mid
summer, make ample provision for
the fall They time the loans they
make to meet their obligations and ana
take their chances. During the dull
season Of 1906 the secretary Of the
treasury withdrew $60,000,000 Of the
peoples money and locked 1t up.
This would have been a crime II he
were not willing to release 1t now
when 1t Is needed.
"By appropriate use Of the money
in the vaults Of the treasury 1 have
facilitated the importation Of $780,
months, and have released or ar
ranged for the lease Of $50,00O,OO0
more. This was done, as I say, for
the purpose Of aiding legitimate bus
iness, though 1t has helped the bull
side Of the market as much as II mas
damaged the bear side. / care as lit
tie for either of these considerations
as do you, but am intensely interest
ed in the appropriate business inter-
ests Of the country.
Money is scarce. Some Of the very
best business houses in the United
States with International credit are
now paying per cent interest for
money with which to do their appro-
pirate business. II money could be
secured anywhere beneath the sky for
less they would know and borrow IL.
It is for the relief of business that the
treasury has restored to the channels
of trade the money which 1t with
drew when the people had no use for
1t except for purposes Of speculation.
It was then wanted for speculation
and I withdrew It, 1t is now needed
for business and I restore 1t. The last
$1O.OO0,OO0 deposit went almost ex-
clusively to the cotton-producing
states, and the exceptions went to the
cotton-busing cities" - Washington
Post.