The semi-weekly messenger., 1907-01-01

Washington. December % In "A let
ter to correspondent residing in Nash
vile. Tenn. Secretary Shaw regulates
the suggestion that the United States
treasury ever has come To the relief of
stock gamblers The correspondent in
questioO, whose name is withheld in
sists, that such relief has been given
gamblers and money sharks. the real
cause OF high money in New York.
and inquiries how long will the prac-
tice continue. To which the secretary
made the following reply:
Your letter Of December 2Srd is re-
ceived, and | note your sentiments
with respect to stock gamblers Your
letter is SO courteous and voices SO ac-
curately the view of many well-inten-
toned people, that am constrained
to answer it somewhat at length
You seem to proceed upon the
theory that the existing monetary
stringency is caused solely by stock
gambling In this you are in error.
cotton, 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 n
market value. The proportion of spec
ulation as compared with necessary
and legitimate business is very small
however, and is probably no larger I'm
New York city than In Nashville.
Tenn, where you reside or in Deni-
son, Iowa. where live The best esti-
mates / can get place the amount OF
speculative transactions in New York
city at from 2 12 TO per cent OF the
aggregate.
THE treasury has never come 10 the
relief of stock gamblers and probably
never Will, though the relief which the
treasury grants frequently aids those
who gamble on the bull side OF the
stock market, and the bull side OF Lne
wheat market, the cotton market. the
corn market, and every other market.
but it is equally harmful To those who
gamble on the bear side OF these re-
spective markets. Both bulls and
bears importune the secretary Of tlIs
treasury, but the nature of the advice
usually indicates the side OF the market
on which they are operating. Natur-
ally these communications have no in
luence whatever. The real business
situation is the sole consideration
'D"-in@ the dull season OF 1906 the
sr""c'a-y withdrew sixty millions Of
a. I"rples money and locked It up
, rs would have been a crime If he
Z wiling to release IL now when
needed. BY appropriate use Of
the money in the vaults Of the treasury
] have facilitated the importation Of
hundred millions of gold within the
las, nine months. and have released, or
arranged for the release n fifty mil
lions more.
This was done a. / say. for the
purpose Of aiding legitimate business.
though it has helped the bull side Of
the market as much as # has dana gcd
the bear side. care "a little for
either Of these considerations a. DO
you. but / am intensely interested In
the appropriate business interests og
he country.
lit is for the relief OF business that
| the treasury has restored 10 the chan
neIs Of trade the money which T. with
| drew when the people had no use for g.
| except for the purposes OF speculation.
| II was then wanted for speculation AM
! / withdrew IL IL is now nesdcd for
/ business and restore IL The last so -
! 900 900 deposit went almost exclusiv -
| ly TO the cotton producing sta-es ar {
| the exceptions went 70 cotton Duvin
! cities"