New-York tribune., 1901-12-29
SHiU'S VIEWS on CURREAC1.
FAvoRs ELASTIC MEDIUM OF EXCHANGE
SPEECH TO BANKERS


De Moines. Iowa Dec Ex-Governor Shaw to-
night denied having given an interview regarding
Secretary Cages Treasury policy. On the con-
trary he has positively refused to give any such
interviews He has. however, spoken In most cordiai
terms his approval OF Secretary Cages adminstra-
ton of the department. The Governor has been
busy all day receiving congratulations by wire ana
mail and entertaining visitors who called to pay
their respects The letter of the President has not
yet been received by Governor Shaw. nut Is eA-
pected soon.
Governor Shaw received letter from Secretary
oT Arricrlture Wilson to-day congratuating and
welcoming him into the Cabinet The letter was
couched in warm terms Of cordialty
Governor Shaw says he positively refuses to be
interviewed present In respect to the asset cur
rency question in respect to his OF secretary
Cages administration of the Treasury Department
lie said however. that the nearest he came TO an
expression of opinion on the asset currency aues-
tion was I'm speech delivered at Norfoih. Heo
last April and which published in The Bank
ers' Journal of July out hc would not say Just
what his expression of views was.
In an address delivered before the Northeastern
Nebraska Bankers Association at Norfolk, Neb
on April % 1901 Governor Shaw said In respect 10
a set currency, or bank circulation based on as
SETS
have been asked 10 say something on the sub
tect of bank circulation based on assets; TINS Is
tt"io, tbaTefnr shall therefore. not attempt to
defend it. ] willing. however 70 go on 1Sr9 rscurS
st, ~ aas No oiber vav to secure an elastic
rency other than asset currency, then Should ad-
am mindful OF the fact that it is claimed that
IN fbe hands Of the bankers Who should control
the volume? I willing the railroads shali , de-
viii build long there is demand fGT III
them The cars Of the sTs nnr moved but
literally acres Of cars stand on sidetracks retired
the could be e IS he sheaP sTnsd as in c the
snripu nd rabU
But as have said do not believe it necessary
to resort banking in order 70 provide an
akin 10 fear against a currency based on assets
and prejudice 80 long as II @ SSS'S the iSinp itself
against wnC the pTsqdfss sa es Tadnaea tax on
currency based on government bonds would result
nit M an iliustration hut do not understand me as
"a t or 80 N ges ss2aon ai Suggest make il
only to brins out an idea 90 ,ss,s volume
Of SSRe9i ce9son sauivaen9 to onefourh q their
ital stock at tax OF say oneSa ,te e rapitai
stock to one-half per cent then TO increase asaiSS
,6a to re- az stan to equal It's capital Stock at
per cent tax / believe this would induce the
b5nds They are good assets especially for banks
with large m dsP9s its asR as fs'efS in time
Of stringeneyNthey would be Kept on deposit in
would be issued 10 be retired when needed
0v whsn more Saak m
and compelled redeem il a. gyen ID date and
tsd o inCTeass their circulation when needed
be retired as the demand for its ceases and
keep ever present the inducement to retire IL when
not needed and elasticity is secured
! repeat that currency based on assets contains,
in nv Judgment no element of danger except popu-
lar prejudice This will vanish the question Is
discussed and explained by those who make STUDY
OF il The deuositor would be in no worse condi-
tion than now Whenever a bank fails the assignee
finds it's bankahle commercial paper hypothecated
In other words it has increased It's circulation by
sending It's assets 10 some other bank and borrow
ing circulation high rate or interest ana II
does this even after TO be solvent IL GER
tainlv would worse 70 allow A government
issue after special examination.