Letter from Leslie M. Shaw to all depositary banks
Secretary of the Treasury Shaw hears that many banks are loaning surplus funds through New York brokers at high interest rates, which are then employed for speculation. He recognizes the legal right of banks to make loans knowing they will be used speculatively. However, he is not willing “that Government money shall be enticed away from the locality where it has been deposited” for such use. He advises depository banks to return excess funds to the Treasury.
Collection
Library of Congress Manuscript Division
Creation Date
1906-09-07