The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1901-12-29
NEVER CRITICISED GAGE
GOVERNOR SHAW SAYS HE APP
PROVES OF HIS ADMINISTRATION.
Excerpt from a Speech Delivered by the
Governor Last April Favorna
an Elastic Currency.

Des Moines, Iowa. December 2s. Cover
nor Shaw when seen By the Associated
Press correspondent tonight denied having
given an interview regarding Secretary
Gsge's treasury policy On the contrary,
be has positively refused to give any such
interview He has, however, spoken In
most cordial terms Of approval of Secretary
Cages administration OF the department.
The letter Of the president has not yet
been received by Governor shaw. Governor
SHAW said that the nearest he came TO an
expression OF opinion on the asset currency
question was in a speech delivered Mt Nor
folk, Neb., last April aud which was pub.
lished in the Bankers journal Of July. but
he would not say Just what his expression
Of Views were
Fearing that he had been misunderstood
or misquoted, Governor Shaw tonight ou-
thorized the Register to publish the fol-
lowing: Il have spoken in the highest
ana most complimentary terms Of Secretary
Cages administration OF the office of the
secretary Of the treasury. Further than
that have not spoken and shall not speak.
THIS statement must be given no other IN
depreciation thsu thst | DO not propose TO
discuss these problems at this time
In an address delivered before the North
eastern Raukerr' association at Norfolk,
Neb., on April -, 1901, Governor Shaw said
In part In respect to asset currency or bank
circulation based ON assets II nave been
asked TO say something on the subject Of
bank circulation, based on assets. This Is
not an issue IN politics, nor have we any
| legal provision therefor. | shall therefore
| not attempt to defend It, I am willing
however, TO 60 on record as Ia favor of an
! elastic currency. and II / believed thai
| there was DO other way TO secure an elias
| tic currency other than asset currency, ther
! should advocate such an issue. ! an
| mindful Of the fact that Ii Is claimed tina
an elastic currency plsceg the control OF
| the volume in the hands of the bankers
| Who should control the voiume7
| AS have said, do not believe II neces
eary TO resort to asset banking In order Z,
| provide an elastic currency. recogntz
| a public prejudice akin to fear against
currency based on assets, aud prciudlces. *
long rs II exists, constitutes 40 element o
danger, even when the thing itself agains
which the prejudice lies contains no elC
ment OF danger. believe that a gradual
tax OF currency based on government bond
wo1ld result in elasticity. / suggest
scale OF taxation only to bring out an idea
suppose banks were permitted 10 issu
= volume oL circulation equivalent TO onc
fourth or their capital stock, at tax o
say one fourth per cent, Then permit a
Increase of one-half It's capital stock a
ne-half per cent, then to Increase to three
fonrths at relatively increased rate an
then TO Increase again to equal It's capita
Stock OF one per cent / believe this woul
induce the banks to carry large volume o
government bonds Then. Instead of sci
Ting these bonds ~ Increase lis cash-it
circulation in time stringency Wuul
be deposited st Washington and on call i
gse, circulation should be issued, to be re
fred when needed
Let the bnnks he permitted to t,creas
their circulation when needed TO be retire
as soon as the demand for il ceases. an
keep ever present the lnducement to retir
it when not needed ana elasticity h 20
cured " "
u repeat that currency based on asset
contains In my judgment no clement of dar
vanish as the question Is discussed and e1
plalned by those who make a study OF II