The Denison review. [volume] (Denison, Iowa) 1867-current, 1908-01-29
EASTERN VIEW OF SHAW.
Raymond Tells in Chicago Tribune
How Shaw Surprised Wall Street.

Leaders here are immensely inter-
ested in Mr.. Shaw and his move
ments. He made an excellent secre-
tary of the treasury and some good
work he did while in that Office is
just becoming generally understood.
Eastern people made good deal of
fun of Secretary Shaw when he first
came here. He was of distinct Iowa
type. and had been too busy in that
splendid agricultural state to devote
much attention to social affairs. The
secretary talked and joked with every
one. He listened to what people
said and told them stories in return
without exposing his own plans.
Financial magnates from the Wall
street district journeyed to Washing
ton for the express purpose of pump
ing or of instructing the Farmer. -
as they were pleased to call him. 1t
took considerable time for these dis
tinguished and somewhat pompous
gentlemen to become convinced that
the former peddler of apple trees,
who subsequently became country
banker and later governor of purely
agricultural state. was in position to
teach them. and the Shaw lessons in
methods of banking are remembered
in Wall street to this day.
1t is to the eternal credit of Secre-
tary Shaw that almost the first thing
he did when he took charge of the
treasury department. was to make
general attack upon red tape and old
fogyisnl which had peculiarly char
acterized that branch of the govern
ment service. 1t was Secretary Shaw
who later on began to introduce
startling innovations into the govern-
ment's financial policy. When he
found the law in his way he interpret
ed it as literally as he possibly could
do. 1t was under the direction of
Shaw that other than federal bonds
were made use of as securities for
government deposits in national
banks. If he could have had his way
he would have substituted the same
class of securities for federal bonds
even as basis for circulation. He
was beginning to apply to the national
bank note the exact principle which
is now sought to be carried out in the
Aldrich measure soon to be reported
to the senate. The law officers of
the government held that the world
"bonds'' in law, from its context,
could mean only United States secu-
rites. and SO this great advance was
stopped in that direction.
The lead of Secretary Shaw has
been consistently followed. however.
in regard to securities to back up
government deposits in national
banks, thus releasing an immense
amount of United States bonds, which
in turn could be used to swell the
circulation.
1t was during his term as secretary
of the treasuary also that a wide
spreading decision was made regard
ing the use of raw materials in arti-
Giles intended for export. The law
had always been interpreted rigidly
until this Iowa smasher of mossbound
precedents started in. The secretary
ruled that any raw material brought
into this country which subsequently
became part of article to be export
ed. would not have to pay tariff rate.
Secretary Shaw helped exporters I'M
mensely when he decided that ident-
LITIGATION was wholly unnecessary. pro-
vided the government revenues were
| fully protected.