The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-09-03
ELASTICITY
Secretary Shaw Addresses Chicago
business Men on National Cur
rency Problems.
Advocates a Currency Which Will
Expand and Shrink Accord
IS ing to Needs.

Chicago, Sept. 1.-Two hundred BUSH
ness men from all. parts of the country
listened to Secretary Of the Treasury
Shaw talk on THE Business Outlook" at
q banquet given last night by the National
Of Merchants and Travellers.
Secretary Shaw declared that what was
needed was not an elastic dollar, but some
provisions by which; automatically, the
aggregate volume of dollars would In
crease whenever and wherever more dol
lars were needed and would as promptly
retire when not needed. 80 go ~
Mr.. Shaw said in part:
To those, who are comparing 1908 with 1893,
and who think history likely to repeat itself
every ten years, permit the suggestion Of 4
few radical differences in conditions. Ten years
ago, whether wisely unwisely, whether with
or without foundation in fact or reason, a. very
large number, and OF that number many close
students of commercial and industrial condi-
lions, believed our then financial system not only
unsafe but absolutely vicious. At least four
kinds Of money-United, States notes, treasury
notes, silver dollars and silver certiacates-were
believed to be dangerously near depreciation.
Grave doubts existed, and were freely expressed,
whether the secretary Of the treasury could
maintain the parity Of these forms of money If
he chose, and equally grave doubts existed to
the wisdom OF attempting to maintain their par
1ty. Aye, very respectable number of very good
peopl eand q very respectable portion Of very
good public press openly advocated the redemp-
tion of greenbacks in silver and the refusal to
exchange gold for any form Of money except gold
certificates.
No Doubt Of Parity.
No such doubt or desire now exists. By express
statute It has become the duty OF the secretary
of5the treasury to- maintain the parity with gold
of all forms of money coined or issued by the
government. and express authority is given to
negotiate loans, II necessary, Tor that purpose.
In other words, the secretary. OF the treasury is
directed to exchange gold for any and every
kind and form of money coined or issued by the
United States, and to bond the government to
the last limit of hts authority whenever such
action Is necessary to the maintenance Of parity.
A man Is a fool who sends his money into hiding
now. :a;-tyS.3
It is true that very respectable number OF
very good people, and Of that number desire to
as 1t is might be improved by adding an ele.
mant Of elasticity. al 4 do not think there exists
any great number who believe we should, have
| any imitation. Eight years ago we had $21
per capita Now we have certainly more thar
$29. and probably nearly $50 per capita. :,:: Con
do not generally consider this an insufficient
normal minimum volume OF currency.
Need Elasticity.
I repeat, the only criticism now offered re-
lates to the want Of elasticity. Not that a
shall be made responsive TO the demands of bust
ness. OF course, the term is misnomer
Elastoc material like rubber Will expand in one
direction, but itfcontracts in the opposite direc
ton, while the material; the volume, is neither
Increased or diminished. What is needed is not
| automatically, the aggregate volume of dollar.
| shall increase whenever snnd wherever more dol
lars are needed, and Will asSpromptly retire wher
| not needed.