The Birmingham age-herald., 1915-07-21
The Desperate Perplexity of Governor Shaw Will Not
 Arise in Future
MEETING PROBLEMS
 IN ANOTHER WAY
Shaw Subjected Himself to Criticism in Handling Crop Movements But It Seemed the
 Only Way
By HOLLAND

-Nfa ioihs July zt.-tSDecldl.1-tnlX A few years have passed since Governor Shaw, Secretary of the Treasury in the administration of President Roosevelt. was put to his wits end in order that he might so utilize the resources of the Urea sury department as to facilitate the movement of the crops from the fields to the markets. If the action the Secretary then took be now compared with reports Of the kind which were made a few days ago by banker who, had he been will ing would have succeeded Governor Sha W as secretary of the treasury in the admin istration of President Taft George ". Reynolds. it would easily be discovered how rapid have been the changes in our financial market and money market posi- uon since Governor Shaw retired from the treasury department in 1g57
 The crops were plentiful when perplex- ity beset Governor Shaw, but the means TOT moving them were of doubtful suffi- ciency, The treasury department pos sessed resources, but there was question about the right of the Secretary to mako use of them so that the banks in the az ricultural sections could be provided with abundant funds. Governor Shaw strained a point, believing that his discretionary powers gave him abundant authority for such action as he took. Yet he was se verely criticised Jacob H. Schiff was so apprehehslve that demora liza ton or dan ger might follow Secretary Shaws dscre- tlonary use of his power that he deemed It advisable to voice his fears In brief speech made by him to members of the New York Chamber of Commerce.
 For many years the bankers of the country, and especially those of the east began preparations for meeting the de- mands of the farmers late in the spring or carly in the summer. It was a recog- nzed seasonal money movement time. mere had to be cooperation between the farmers and those who controlled monav resources and this cooperation was never lacking. About the year 1900 the late freoerlcK ID. Tappan, one of the leading bankers of New York and for many years nigh authority in the clearinghouse assoc'a talon, thouAht he detected change so lar as crop moving financing was con cerned He said to some of his associates m the clearing house that he had good reasons for believing that the farmers were gradually accumulating funds They had received the benefits of the enormous exports which began late in the year 1896 It was chiefly farm products that were exported which made possible the largest import of gold made up to that time. ap- proximately oooo0,O0o. This import is now one of the traditional features of the last year of President McKinlev's first administration
 Other evidences of the fact that farm CTS were being relieved from their heavy debt obligations, so greatly relieved that they were able to lquidate mortga pes was furnished by the ending of the con- siderable number of farmers loan com panies or agencies. There was a time when in Boston and New York almost every office building had tenants who were chiefly occupied in placing loans of eastern money upon western farms This business was disappearing about 1900.
 MT Tappan ventured to make the pre- alctioh mat in 10 or 15 years the farmers, especially those who cultivated grain, would be able substa ntielv to finance the movement of their crops from the fields to the markets Now one of the most important of the many important thenonena associated With the European war is set forth in a statement made by President Reynolds of Chicago, whose bank is one of the greatest in the United States, and by New York bankers who have recently visited the west, notably William A. Slmonson, vice president of the National City bank. In June Mir Simonson, upon his return to New York told his friends in the financial district that in all places visited by him-and his itinerary reached from Minneapolis on the north to the Missouri valley, and took him through the state of Iowa and across Mis- souri from Kansas City to St. Louis-that the reports he received from bankers throughout that entire section were not only gratifying, but astonishing The bankers without exception told him that