New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-09-25
DAWES FOR SHAW'S PLAN.
CURRENCY REFORM.
The SecretUy'S Idea Right, er-CoR-
trOlLcr .SagS.

Pittsburg. Sept. 24.-The delegates to the ninth
annual convention Of the Pennsylvania Bankers
Association held their final session to-day.
William II. Smith Of Philadelphia, representing
the banking department Of Pennsylvania. de-
livered an address on State Supervision" He
was followed by eN-Controlier Charles G.
Dawes Of Illinois on Proposed Changes ia Our
Banking Laws" Mr.. Dawes said in part:
The address Of Secretary shaw at Chicago in
favor Of the authorization of small issue OF heaF-
ily taxed hanknOtes unsecured Ly the deposit OF
the United States bonds required under present
law. Indicates the new phase which the dscussi7 m
of currency reform has recently taken on IN ne
country. u maT6s ih' paSsng rom Saii9us plDnc
consideration Of the complex ana radical measure
others. ana The inception ~ the discussion of a
simple ana sane remedy Tor q generally iecog-
nzed oe,ect i1 our inonsl2fy system ~o-,- has
hen rI,.av 5fsclIese5 hy what nav be termed the
radical element Of currency refo-iners- Their plan
Tor the author q tion Of lightly taxed national
hank notes. unsecured by government bonds. II
early and most calanllfoEs Crisis IN the Dust
ness Of the nation. IL is matter or common
knowledge and the aggregate st--cnents q the
national nailke stem nensliS t,,,,i iLe s ~.
trollor show that the aeeffEaieq IlahllIes OF Nc
system are AT present IN q well expanded condi-
the aggregate bear al present such a ratio the
actual cash reserves that TO increase them much
the proportion borne by the cash reserves 10 Ia
Vow. in this expanded condition q banking cred;
its and with a well expanded condition Of general
cTees 10, otfr s l P bi5-6rIs Of his Country and
ever other would indicate that should
future liquidation Of credits. rather than
methods for creating additional present creq--
its-we hear the advocates q lightly taxed
asset currency calmly advocating s. 6ul-
wark Of safety ~ the banking and business inter
the banks siu further 10 increase the disproporton
between their liabilities and their cash reserves,
Treasury is 10 the credit OF The greenbacks: 50
are the cash reserves OF hanks 10 the cTeGlt OF
sufficient sustain these Liabilities, yet
c1 as
amount We want no lesseninE Of the cash ana no
adding 20 the liabilities
Let us now take up Secretary shaw's plan for
heavily iaSed enerSencN asset uittilCN ctllslu
erinE further some OF the dangers ot lightly taxed
sset euIIteE Ntcn I's la 100 ,-e y he he
taken ont 10y the banks in normal times 10 secure
banking credit il will form addition 20 the
already large amount o. banking credits now IN
resting Up0n existing cash reserves. since II can
be proftabLy issued IN normal times and since the
least - per cent Of the capital OF national banks
this currenc> Will es wnole. pe PIacJical,Iy
% panic IT viii he an added burden on the banks
and intensity rather than alleviate panic conditions
Secretary Shaw's plan. however, for per cent
or per cent restrictive tax upon such issues Will
probably issued under that rate Of taxation unless
reach AZ times % manic financial disturbance.
As other forms Of banking credit are then IN process
these notes can then be ISSUED and viii be great
fore. be one Of imitation. since the notes AT such
/ time viii operate to sustain the level Of banking
| credits. and 50 raise
/ The Secretary has presented the only plan upon
measure of great public Importance. II coupled
with some modification of The Aldrich bill increas-
~ his ability 10 aid the community by timely de-
posts in tie banks ~ governmental cash it viii be
lens and put the country il the best possible shspe
I Tor any financial assurances which nav he be-
! fore rs