Ottumwa semi-weekly courier. [volume] (Ottumwa, Iowa) 1899-1903, 1901-12-31
SHAW CALLED TO WASHINGTON.
lowa's Governor, at Presidents Re.
quest, Goes to the Capital.

lies MOlucS, Dec. oU.-1ONSlliol
Shaw has received letter from Pres
ident Roosevelt bidding him to come
to Washington at his convenience and
the governor will leave for the seat
of government on New Years night
over the Northwestern.
The Presidents letter was brief. but
extremely cordial Pleasure was eX
pressed that the secretaryship had
been so quickly and satisfactorily set
satisfactory not only to himself
but to the entire country.
Governor Shaw was informed that
Secretary Gage awaited his convent
ence. and the President ventured the
hope that conference of the outgo-
ing and incoming Secretaries with
himself might not be long delayed.
Governor Shaw expects to reach
Washington on Friday evening.
The Grant club of Des Moines will
give Governor Shaw reception and
banquet at the Savery Hotel shortly
after his return from Washington,
probably on Jan. 9. Governor-elect
Cummins will preside, and many of
the leading men of the state will be
present.
He Denies Story.
Gov. Shaw denies having given an
interview regarding Secretary Cages
treasury policy. On the contrary. he
positively refuses to give any such in
terview. He has, however, spoken in
most cordial terms of approval of
Cages administration of his depart
ment.
Governor Shaw positively refused to
be interviewed at present in respect to
the asset currency question, or in re-
spect to his or Cages administration
of the treasury department. He said
however, that the nearest he came to
an expression of opinion on the asset
currency question was in a speech de-
livered at Norfolk, Neb., last April and
published in the Bankers Journal of
July, but he would not say just what
his expression of views were
The Governors Norfolk Speech.
In the address delivered before the
Northeastern Nebraska Bankers asso-
citation at Norfolk, Neb., April %. Gov
Shaw said in respect TO asset currency
or bank circulation based on assets:
This is not an issue in politics. nor
have we any legal provision therefor,
/ shall, therefore. not attempt to de-
fend it. | am willing, however, to go
on record in favor of an elastic cur
rercy. If | believed there was no
other way to secure an elastic currency
other than asset currency, then
should advocate such an issue.
1T is claimed elastic currency places
the control OF the volume of circula-
tion in the hands of the bankers. Who
should control the voiurae OF circula,
ton? / am willing railroads shall de-
itarmine the number of cars to be used
for they build cars SO long as there
is a demand for them. The cars of
western railroads are all employed
when crops are being moved; but lit
Ierally acres of cars stand on the side
tracks retired from circulation while
Ibe constructed as cheaply as currency
can be issued, they would be burned
in the spring and rebuilt in the fall.
Il believe a graduate tax on cur
lrency, based on government bonds,
would result in elasticity. Permit an
| ILLUSTRATION. but don't understand me
as advocating, or so much as intimat-
| ing, the correctness of the scale of tax
alton suggest.
Suppose banks permitted the issue
of the volume of circulation equiya
| lent to one-fourth Of the capital stock
at tax, say, of one-fourth of one
per cent. Then permit an Increase OF
half the capital stock at one-half OF
one per cent, then increase again tc
three-fourths, at 4 relatively increased
rate. then increase again to equal the
capital stock, at one per cent tax.
believe this would induce banks tC
carry a large volume of government
bonds. They are good assets, special
ly for banks of large deposits. They
instead of selling those bonds to in
crease it's cash--its circulation in time
of strigency-are kept on deposit al
/ Washington. and on call. an increase
of circulation to be issued or to be re
| tired when not needed.
when q western bank now need;
Imore circulation, more cash. it redis
counts its commercial paper and i!
compelled to redeem it at a given dat,
and pay much higher rate. Let bank.
be permitted to increase their circula
ton when needed, to be retired a:
soon as the demand for it ceases, kee,
/ Lile ever ieduy tlAulCelllSlit W ISliT'
it when not needed, and elasticity i.
secured
/ Currency based on assets contains
in my judgment, no element of danger
except popular prejudice. This will
vanish as the question is discussed
and explained by those who made
study of it. The depositor would h'
in no worse condition than now
Whenever bank fails the assigne
finds it's bankable commercial pape
hypothecated. In other words it ha
increased its circulation by sending as
sets to some other bank, borrowin!
circulation at a high rate of interest
and it does this even after it cease
to be solvent. 1t certainly would b.
no worse to allow the government is
sue after special examination.