New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-09-03
SHAW on PROSPERITY.
Country Al Right, He Says; Not
on the Back Track.

. dinner given tonight at the Auditorium
.so,el BY IN National Association Of Merchants
and Travellers. He said in part.
representative OF large metropolitan daily
recently submitted The following question as the
Di1ss states richer than il found it?'' The honor
S,as declined. as usual. but could not help con-
N@-s,isfing a few facts.
-eaTfv as can be estimated the annual produc-
se MS does INCLUDE Implications. This does
Doi include raw cotton and manufactured cotton;
-, veW cotton and the value added thereto in the
process ~ ,,Iorf Sd 20 oa 600 ~ otber roeTcbsndise
eeiriv non-conpetitive with our own products. We
sbs-efore consume the equivalent OF - per cent of
sfrue VII prosperity cease.
We are the most prosperous people In the world,
.Se-t The little that We sell sbrosd-abOut 10
os- cent OF our net production-and the little We
pgTSsSsS Constitute no challenge 10 the statement
that our prosperity lssls Win ouIseLnes. Sl'leS
isbor voluntarily refuses employment. or commerce
' 20 alarm Unless apprehension becomes cpl
ssr1c and ltrs-conservatsm CONTAGIOUS. the imme-
Is tie Immediate past has showered upon us.
II true mat very TesPecJaPe e NUMBER s or
Ssssef believe financial system. good as u is,
mlgat &c ~ loJ mink there exists any great num-
- vho believe should have any imitation.
Egh' years Ss more than So and pTo6aby nearly
a. per capita Conservative business men ana
Conservative bankers 90 not generally cons, consloes s
MS an insufficient normal minimum volume q
currency. j repeat the only criticism no" o1e l
relates the want OF elasllclty Not llat u,'isI
car be made elastic. but that the volume shan %
,~sse responsive TO the demands o. business. OF
course the term Is missioner klasllc Ia !;
ne rubber. Will expand IN one clrectlon out il
e5-i,I -fs volume is neither increased dimin-
,sbs5 What Is needed is not an elastic dollar. but
rsa volume q collars shall increase whenever and
Wherever more dollars are needed, ana VIII as
.--o-,-fiv retire when not needed.
I6sIe IS l no~ Trbt 81 banks to issue oircu-
United States but subject 10 q tax 81 10 per cent
fe- snnum This tax is prohimtory- II were
ss-ysr authority 10 formulate a measure that would
sro,ds the requisite elasticity 10 our present cur
re-T5ttng national banks. with the consent OF the
Controller OF the Currency 70 issue EoiuIne OF
circulating notes esl 10 % per cent oI tlsiI JONI
secured Circulation tax 81 per cent. the same
% % IL -5e-osr al an equal amount OF lawful
money with any Sub-Treasury-
Three things z know: First this additional cir
culauon would spring into existence almost M
efanfv whenever and Wherever interest rates az
vauced ,he point 81 profit Second. d would as
promptly retire whenever interest rates became
normal Third. q would be absolutely ssfe-as good
slight and inrnaterial change identical IN form and
appesrance-for the government amply protected
But YOU say this would be no aid 70 commerce
under ordinary conoluons. reply lhs1 uh9eI Or
binary conditions the present volume Is sufhcient
cortroIer was able 10 report no dollar OF this add
r0nal circulation IN existence ] DO not intimate
that TINS s the only way To- secure elasticity 1
ana 81 possesses no element ~ imitation, but would
afford very respectable cushion against sudden
financial conclusions. and few people ask more
There IS nothing original or novel IN the scheme
conform 90 our present system
And yet important as the element OF elasticity
may be u Is MOI an essential 10 OUT prosperity;
banks OF Nevy-York had average surplus above
their required reserve OF sl0OoO.000 During August.
1919 they had a surplus reserve 81 their vaults OF
100000 In the time the trust companies
N6oeae50 have good reason 10 believe. in fact,
have very positive assurance. that banks gen
The shock that felt IN every central reserve
money centre from the Atlantic to thePactfc Coast
and from The chain Of lakes 10 the Gun on Sep
blessing Wherever that shock felt q little
more care has been exercised that II be not re-
pee'ed 70 1868 an not SAYING that u vii not be
repeated ] am paltng no predictions am sim
Sew-York and i believe the banks throughout the
country. were ia better condition 10 face the annual
with which put winter stocks OF goods IN the
stores and with which 70 purchase the winter
IN closing This branch q TIE case, as We lawyers
ser roav no ce e fst sn 5 ~ e IF
facts. the l0gi al sequence OF which suggests dis
aster. Z disaster comes. 81 viii be Psychological
and NOT logical The mivrobe IL exists. is in the
mind. ID is MOI e-seU here
ASSUMING then thar we are Ia comparative
hea th and in 40 imminent danger OF disease. I
want 20 invite your attention 10 the importance
~ forward step. This s not political gathering.
and are not expected 10 have political desires
hut we are expected 70 have pretty good business
F. go, ~ La business sense MAKE appeal
Wen ask, How shall We acquire more markets?
tatly anc gratuitousy TO SCI our doors more or
Jess widely agar and permit more freedom Of i'm
p'Tiauon ~ me hope tnat other countries viii set
their doors more or less widely siar and give
greater freedom 81 expectation. Another way sug-
gested BE- % trade complmeuts-tO exchange trade
pfl'ieges-io set cur doors somewhat ajar for the
special advantage ~ one country on condition thar
q shall set its doors aisr for the special advan-
fsFe q our people Cousi6erab bic has been said
slly accomplished MUM '-ls 's1' @0'u-
do not wish 10 discuss the merits OF either OF
these methols but ] do wish 10 suggest third
enl, sincerely believe. the only method bv which
south American and South African conn riee ana ~
we lsanos l5lng south 81 the equator The policy
Nl-sh teellteo IN creating the commerce OF the
Pacific slope substituting lines ~ roror77Infca-
tlon "ith the Pacific Slope. When the frst trans
''-... ll -ts- liee oi railway Were built there
80 '-iil~,ill commerce 20 pay operating expenses.
20 say nothing % dividends on investments rev.
business men and fewer politicians objected to
government aid 90 rrans1Ortuerre1 limos 5I,rig rba
development period az The .ar7-ravoa sl[,-- &C.,
lines. These railways need no assisfsrCe now NJ
n-e.It1H man OBJECTS % government aid TO the
party objects 10 large expenditures ou yivs-
hle streams Improvement 10 rivers and 7arhors
- s1ps-lg 70 NE commerce of rivers and harbors.
- W ever secure ne trade az the countries 10
which have referred We vii frsf saC,,re re,,,,la-
liles Of connuii cation with these countries AND II
Ne ever secure these Dimes assistance mus ba a +
l9ioel- no az toG, owning steamship would
divert u from participation I'M rrsrsarlsrrir com,
aieIye, Mhefe There ls much Co be done and send
ie or no commerce "
To not misunderstood me. am not mourning
w leieaf ~ any ship subsidy bin. but / shall
Npeli exceedingly tho CefCat Of a bill IL any such
shall ever Do introduced which ~ enacted ,roI,l5
insure regular lines Of American shfus F,-i~p ~
Al,e1la an lag. and carrying American merchants
f4er1h anoise Tho product u American labor INTO
nos countries ro which j have referred such a
uudevelope6