Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1903-01-01
Treasurer Ellis H. Roberts Dis
cusses Its Effect on the
Nations Money.
THE EXPANSION OF BUSINESS
Imitation Of the Currency Incites to
Dangerous Increase in Hazardous
Undertakings in the Business World
Director of the Mint Roberts Dis
cusses Bank Note Issues.

Washington, Jan. Officials of
the United States Treasury Depart
ment discussed the currency question
today before the American Association
for the Advancement of Science. Pan
American and insular affairs were dis
cussed by other representatives of the
government. The papers aroused much
interest among those who attended the
sessions, the main interest centering in
tae social and economic section.
Ellis H. Roberts. treasurer of the
United States, in his paper on effects
of the Inflow of Gold" said in part.
THE stock of gold in the United
States shows for four years an an
nual average gain of s107,7S36Ss. Per
capita the stock of gold in this country
is greater than anywhere else, except
in France and South America. The
treasury of the United States holds
$615,000,000 and gained s41a,450,562 in
five years, while all the official banks
of Europe taken together in the same
period lost S37,477.102. The inflow of
gold has since July !, 1897, added an
average of s7s,23S,512 every year to
our circulation.
Here lies possible peril. Initiation of
currency incites to dangerous expan-
sion of business. No one will suggest
that the incoming of gold shall be
stopped; but cannot paper currency be
reduced in dull seasons?
Prices of commodities have advanc-
ed and wages have followed a little
after. How do these conditions affect
our world relations? Has imitation of
currency or prices and wages gone so
far as 10 check our exports? In agri-
culture crops at home and abroad de-
termine shipments. Prices and quality
control exports of manufacturers In
the first ten months of 1902 we sold
abroad more manufactured articles
than in any like period except 1900, and
they We're 1858 per cent. of our total
exports. The inflow of gold is not With
out its hazards. They must be avoid
ed. The American people are sane
enough to make gold not only the SYM
Dol of prosperity, but It's stout defense"
The address of Director of the Mint
George Il. Roberts, was devoted largely
to the matter of bank note issues. He
said in part:
THE objector to note issue without
special security wants, first of all, to
divest himself of the idea that note re-
demption depends solely or primarily
upon the gold reserve in the banks
The proposition 10 issue notes on bank
assets, he said. was part of the devel-
opment of the clearing house idea
Continuing, he said: so long as
bank confines its note issues to the
services of its regular daily legitimate
trade. to giving the ordinary accommo-
dation to farmers, manufacturers, ind
merchants in their business, there will
be no important balances against 1t at
the clearing houses. because the legiti-
mate trade of the country offsets it
self. But as bank begins to greedily
push its circulation by unusual meth
DDS, or unusual credits, adverse bal !
ances at the clearing house will begin |
TO appear and its gold reserve dwin- |
de-"
Assistant Secretary Allies, in his pa-
per on the operations of the treasury
said that for more than |
half century it had been the estab-
ished policy of the government to re-
ieve the money centers when the lock-
up of money in the treasury caused /
stringency. Speaking of what the I
treasury had done this autumn, he
said:
Within the past few months the
secretary of the treasury by extraor- I
binary efforts succeeded in stimulating I
national banks to take out some $685.
100000 additional circulation. BY an
icipating the payment of interest on
he public debt he succeeded in paying
out 100000 more. with a profit of
,ver $4,000 to the treasury; and finally
when the business of the country de-
handed still further relief, he antici-
,ated portion of the public debt 1t
self by buying bonds and thus releas-
.g some $23,000,Oo0. BY the time the
:rop moving season was over the
mount of cash actually locked up in
he treasury had been reduced by
nearly $500O0,000, and there was left
'ver $50,000,0o0, which tradition and
practice have established as fair
working balance
7,