Carson City daily appeal. [volume] (Carson City, Nev.) 1907-1930, 1907-08-28
SHAW ON FINANCE

Leslie NJ. Shaw, former secretary
OF ely treasury, may De d joke as q
ca..-idate for the presidential non1in-
alton, but in his own field OF finance
his opinion is worth consideration.
In an authorized interview with 4
New York paper, he gives his views
on the present financial situation,
and expresses the opinion that The
market price OF stocks has very lit
tie relation to the actual condition
OF the country, and backs his c0ncIu-
sions with facts and figures % su5-
tain it.
Our farms produce more than S.
0O0,000,000 per annun, and the pros
pect IS good Tor an average sop.
Our mines yield more than $-,oy.,-
100000, and our forests more than
$1,000, 100000. And neither OF these
sources OF wealth has been exhausted.
The output OF our factories, III other
than food products, is $4,000, 100000
and no fires have been eXtinguished.
The railways earn more than $4,000,
O00,0O0, and they are all III success
fui operation. The payrolls OF our
factories and railways aggregate APP
proximateIy $3,5U0,O0 zoe, and the
scale OF wages has not been reduced
duced.''
While these deductions may not be
OF much comfort TO the man who
has his all invested in depreciating
securities, it is substantial assurance
10 legitimate business interests that
no widespread calamity is impending.
SO. long as the crops, the real sources
of wealth are unimparied, the pro
ductiye energy OF the nation is safe
from permanent or violent shock.
The danger, as Nh Shaw sees it, is
quite as much from timidity as from
any actual prospect OF recession in
the general prosperity. AS Mir. Shaw
expresses it, the people Will have
exactly what they expect. Ii those
who have money in banks withdraw
it and lock it up; il the banks refuse
to grant accommodations, and ii the
consuming public decline TO place
orders, then we will soon witness the
effects. Let those who think that
times OF disaster follow each other
at regular intervals bear in mind
that this country never yet eXper-
fenced a period of severe depression
that was not traceable to financial
or ecownomIc agitation Or legislation,
and usually TO both.
In 1888 the redemption Of green
was openly advocated; the party IN
backs III silver instead OF gold
power was under promise TO remove
the protective tagiH from our indus
tries, and the free coinage Of silver
at the ratio Of sixteen TO one was
championed by prominent members
OF both parties. The country might
have survived any one OF these
sources OF alarm. but it could not
survive all three
AT this time no one questions our
financial system, ana tha tariff will
months.
some check in the speed al which
We are going is most desirable. and
the checking process has probably
begun. 1t will bat require a far
measure Of confidence and courage
to prevent undue retardment in. our
industries. Capital cannot be forced
out of activity. I have never seen
che time when universal sanity was
more essential to our we'll being"
One factor not considered in the
secretary's interview IS important
just now, and that is the natural
cowardice Of capital The man who
has money knows 1t is good, and
while lie may regret losing interest
on it or dividends from an income
investment, he prefers to take the
loss rather than risk losing the prin-
cipal and income, too. In time
when widespread strike makes in
teligent business transactions i'm
possible on a large scale then men
of capital refuse absolutely to take
any chance. The effect is to reduce
the capital available for new under
takings and compel liquidation by
the timorous. So far there has been
nothing abnormal in the course of
the investment markests, and indica-
the investment markets, and indica-