The Billings gazette. [volume] (Billings, Mont.) 1896-1919, 1907-01-01
Secretary Shaw Concludes Resume
Of Years Financial Record.
SOME GRATIFYING FIGURES
Extraordinary Trade Activity Followed by
Increase in Circulating Medium.

not respond to the volume of our bust
ness. The annual increase, he says
may be sufficient, but there is no an.
nual contraction during the dull sum.
mer months.
"Only the unthinking and ill-ad.
vised," he says, charge the admitted
stringency solely or largely to stock
and bond speculation.
| 1T is idle to complain of the in.
evitable," he continues. "The spirit
of speculation is among us, and,y like
the drink habit, those most addicted
are frequently the loudest in denun.
citation. 1t ill becomes the real es-
tate speculator to decry every other
manifestation of desire to get rich
quick. The epithet black, banded be-
tween pot and kettle is never instruc-
,, tive, and just now it is even not en-
pertaining"
The effect of the present car short.
age on the money market is also al
luded to. The secretary says:
"A larger crop of cotton than usual
and unprecedented yield of cereals,
fruits and every other agricultural
product has filled the granaries and
warehouses to overflowing and con.
gested every important railway. A
few years ago the freight cars of the
country averaged 40 miles day, but
owing to the present congested con
dition and insufficient terminal facil,
tiles and factory sidings, they now
move only rs miles day. This de-
layed freight is owned by someone,
and someone's money is thus tied up
Cooperation between the commercial
banks Of the country, the secretary
says to be impossible because the
Sherman antitrust law forbids it.
instead" Secretary Shaw says, 1--WE
have approximately 10000 institu-
tions engaged in commercial banking,
each a law unto itself, as long as it
does not violate statutory require.
ments with respect to investments and
reserves. AS natural and unavoid.
able result, no combined effort is made
In midsummer to provide ample re.
serve for the strain inevitable on the
return of business activity incident
to the fall and winter months. Under
our present system the only possible
contraction during the summer and
the only possible provision for the
fall is effected by the treasury with.
drawing from tbs deposits with the
banks when these funds are not
needed, and restoring them to the
channels Of trade as the needs of bust
ness require.
Unfortunately the haniss are not
the only or the principal sufferers from
contagious financial distress. General.
ly they are able to protect themselves,
for II their loans have been well made
they have only to refuse additional
accommodations and await results. II
a crash should come, from whatever
cause. factories will close their doors,
the weekly payroll will cease and the
people least responsible for conditions
will be the ones ON whom this lesson
of self-reliance will fall with saddest
effect
In conclusion Secretary Shaw says:
1T is urged against the present pol
icy that it places too much power and
authority with one man. The re-
sponsibility rests with an administra.
tion. A financial panic ruins any ad.
ministration. For years the name Of
q very worthy president. man with
high ideals and lofty patriotism, was
well nigh a reproach becauae his adj
ministration was accompanied by
widespread financial disaster. II an
administration is to be held RESPONSE.
BILE for the financial health of the peo-
pie. the medicine chest and the sur.
geen's kit should not be sunk In the
sea.
IAN authority is subject TO abuse.
No voice was raised against the rate
bill because & pegmita one man.
through an Interstate commerce com:
mission, removable at pleasure ena
appointive in vaction at viii. TO AZ
arbitrarily. if he pleases. sabseet "a
"a yet undeternasae6 5usisAietssa by