Evening journal., 1903-09-03
SECRETARY SHAW
ON BUSINESS
Addresses National Associa-
ton Of Merchants on the
Outlook for Trade
CONSIDERED FINANCIAL QUESTION

OutloOk" at a banquet given at the
Auditorium Hotel by the National As
sociation of Merchants and Travellers.
Lyman ]. Gage addressed the associa-
ton on the same subject just before
his retirement from the treasury de-
partment. and great interest was at
tached 10 the speech Of the present
secretary. In his discussion OF the
financial question Secretary Shaw de-
clzred that what was needed was not
an elastic dollar, but some provisions
by which, automatically the aggre-
gate volume OF dollars should increase
whenever and wherever more dollars
were needed. and would as promptly
retire when not needed.
EIis speech. IN part was;
A representative of a large metro
politan daily recently submitted the
following question as the basis Of an
interview: "Has the boom left the
United States richer than II found it?'
The honor was declined, as usual. but
| could not help contemplating a few
facts
Compare the following with availa'
BILE statistics covering any former per
iod, and there can be but one answer
TO the proposition. Our farms produce
four thousand millions. Have these
lands become sterile OF their occu-
pants indolent? Our soc, 900 factories
and 81. 900 OO0, 900 in value 10 $4,000. .00o,-
900 Of raw material. and their net out
put. exclusive Of applications. is more
than sS,0OO 100000. Have these hives
OF industry been consumed by the ele-
ments? Six million operatives in these
factories and workshops annually sign
pay rolls aggregating $4,000, 100000.
Have these artisans become paralyzed
OF have their wages been reduced?
Our mines, quarries. clay banks and
oil wells yield $1,000. 100000 Are these
storehouses Of wealth exhausted or
their capacity diminished? Our 20o,-
900 miles OF railway transport 500 0O0,-
900 tons OF original freight, not includ-
ing Implications. and pay 100000 oper-
atives. exclusive OF officers, S650,00
600. Are these thoroughfares OF com.
merce in the hands OF receivers, or are
they likely 20 be?
AS nearly as can be estimated the
annual productive capacity OF the
American people is $1,000. 100000
This does not include Implications
/ OF this we export one and one-half bill
I lions. and import billion Of othe
perchandise. mainly non-competitivl
with our own products. We. therefore
consume the equivalent Of IS per cent
! Of all we produce Not while thes
conditions continue will prosperit,
I cease.
We are the most prosperous peopl
IN the world because we both produc'
and consume more than others. Th'
little that we sell abroad. about 10 pc
cent. Of our net production. and th'
little we purchase abroad. to pc
/ cent. Of our net consumption, consti
tuto no challenge to the statement tina
our prosperity rests with ourselves
Unless our factories and workshops
voluntarily close, or labor voluntaril,
refuses employment, OF commerce vol
unfairly ceases its activity, there 4
no occasion for alarm. Unless appre
hension becomes epidemic and ultr;
conservatism contagious, the immedi
ate future holds for us as much of rea
good as the immediate past has show
cred upon us.
II is true that a very respectabl
number Of very good people, and o
that number I desire to be classed
believe our financial system. good a
IT Is. might be improved by adding a.
element of elasticity. l do not thin
there exists any great number VIII
believe we should have any imitation
Eight years ago we had S21 per capita
Now we have certainly more than S2s
and probably nearly $50 per capits
Conservative business men and COZ
sentative bankers do not generally cor
slider this an insufficient normal min
mum volume Of currency. repea'
the only criticism now offered relate
J TO the want of elasticity. Not that
dollar can be made elastic, but tina
the volume shall be made responsiv
to the demands Of business. OF course
the term is a misnomer. Elastic m;
terial like rubber will expand in on
direction. but II contracts in the Oppl
site direction, while the material th
volume. is neither increased nor dimii
ished. What Is needed is not an Ella
tic dollar. but some provision
which. automatically. the aggregat
volume Of dollars shall increase whel
ever and wherever more dollars an
needed, and will as promptly retir
when not needed
There is now no statutory prohih
y ton against the well-nigh inherer
D right OF banks to issue circulatin
4 notes This right exists thrcughol
e the United States. but subject 10
tax of 10 per cent. per annum. Tn
tax is prohibitory. II l we're give
authority to formulate a measure tn;
, would provide the requisite elasticii
. to our present currency system, thin
J, should add an amendment permittin
. national banks, with the consent {
s the comptroller Of the currency,
issue a bond volume Of circulatir
notes equal 70 80 per cent. of the
bond-secured circulation, at a tax
! s per cent, the same to be retired
: will or by direction Of the comptrolle
!. by the deposit Of an equal amount
!, lawful money with any sub-treasury.