1Preheat the oven to 350 degrees F (175 degrees C). Grease the bottom only of one 9x9 inch square baking pan. Drain the sour cherries, reserving the liquid.
2Combine the flour,1 cup of the sugar, baking powder and salt. Beat in the shortening and eggs at medium speed until well blended. Fold in the nuts and 1 cup of the drained cherries. Spread the batter into the prepared pan.
3Bake at 350 degrees F (175 degrees C) for 35 to 40 minutes. Serve cake warm or cooled with Cherry Sauce spooned over the top.
4To Make Cherry Sauce: In a small saucepan combine 1/3 cup sugar, corn starch, remaining cherries and the reserved juice. Cook over medium heat, stirring occasionally mixture is thick and clear.