Courier Democrat. (Langdon, N.D.) 1891-1920, 1907-01-10
NATIONAL FINANCES
The Cry of Wall Street For
More Money.
TREASURY VAULTS THROWN OPEN


TREASURY VAULTS THROWN OPEN.
Millions OF the Public Money Poured
Into the Golfers OF the Frenzic
MISUNDERSTANDING of the Trens-
ury Wants Congress- to Give More
Power to Wall Street Gamblers.
The United States treasury has con-
tinued again and again to aid the Wall
street bankers by depositing $4,000, 900
with the reserve banks of the great
cities and by redeeming bonds due in
1907. This action followed ON the heels
of anticipating interest on bonds which
was not due until 1907, which thus viz
tually released for banking purposes
$14,O0O,O0O more. There is already
$146,O79, 145 of the government funds
deposited in the favored banks upon
which no interest is paid, which is
being loaned to the public at interest
rates ranging from Z to 30 per cent,
the higher rate being for money ION
CALI in Wall street. Secretary Shaw
also loaned the banks in the fall the
necessary millions to use for the i'm
porting Of gold while the gold was in
transit, the National City bank Of
New York, controlled by the Standard
Oil trust, being the recipient of twenty
or thirty millions of dollars without
paying a cent of interest.
President Roosevelt has, through the
medium of a complimentary letter to
Secretary Shaw. Endorsed and COM
mended this paternal system of help
ing the banks to carry on their fren-
zied financial stock jobbing operations
in Wall street, for. although the money
loaned to the banks is divided between
q selected list of banks in the principal
cities, yet practically it all returns to
the Wall Stree vortex. where alone
money rates are soaring far beyond the
legal rates. That these government
millions are drawn to Wall street is as
certain as water running down hill for
two re%asons-tirst, because it prevents
~ II VI OlaOl llC lAdlI -NCW
York calling for the money they have
on deposit in the New York banks, and,
second, the high rate for money in New
York for the past ninety days, which
will continue until at least the middle
Of January, very naturally attracts all
the funds that can be spared by the
banks everywhere to send their surplus
funds to participate in the exorbitant
interest rates that are prevailing for
stock iobbing purposes.
Such a system of financial operations
for the benefit Of Wall street might be
used in a great emergency to ward off
a panic. but to make it apply at all
times, which is the recommendation Of
Secretary Shaw and approved by
President Roosevelt under the Wall
street influence that surrounds him.
will only help to bring disaster when
the real panicky time comes, for then
there will be nothing left to be done,
as the banks will have already received
all the aid that the United States treas
ury can give. That all legitimate bust
ness can obtain what banking accom-
mediation they need is shown by the
financial notes in the New York Jour
nal of Commerce, Dec. II, which said:
"In the midst of all the hubbub re-
garding the stringency Of money mel
chants are maintaining a calm demeaii-
or, knowing that if the city banks will
not take their paper they can at least
get accommodations from the institu-
tons with which they carry accounts.
Brokers who deal in commercial paper
report 10 disposition to sell at fancy
rates. this being attributed to two fac
tors-good collections and the willing
ness of western banks, particularly
those beyond the Rockies, to purchase
eastern notes on a 6 to 6h per cent
basis. This may possibly explain Oh
what why money is staying in tho in
terror longer than is usual"
Another note in the same column
said: Il have been in the business
twenty-seven years." remarked a mon
ey broker yesterday, "and have never
found it so difficult to obtain funds as
at the present time, not excepting De
cember, 1905. l fatter myself that (!
know the banking community as we'll
as the ext one, and yet they all tell
the same story, no funds. Where it
will all end I would not venture to
prophesy, but unless Shaw to
the rescue the only thing which can
restore equilibrium is liquidation of Sc
curities. and that most drastic"
That vail from the stockbroker give;
an insight into the real condition Of
the frenzied fnanciers. the dread Of
having to sell the stocks they are
holding for a rise. 1t is very evil
dent that the government funds. depos-
tied with the banks, are swallowed up
in stock speculation, and the cry is still
for more money to move the crops.
The principal crop to be moved Is. how
over, the crop Of watered stocks. with
which the Wall street banks and their
trust magnates are so heavily loaded,
which the dear public refuses to buy
at the price demanded.
The fact that Dun and Bradstreet's
report business good and collections
easy shows there is plenty Of money
for legitimate business, and the excuse