The San Francisco call., 1903-12-09
SHAW'S REPORT
IS OPTIMISTIC
Secretary of Treasury Says That
the Country Has Weathered
the Crisis in the Stock Market
ELASTIC CURRENCY NEEDED
Recommends That Provisions
Be Made for an Early In
crease of Subsidiary Coinage

CALL BUREAU, 1906 G. STREET, n.
w. WASHINGTON. Dec. SIN his
annual report Secretary of the Treas
ury Shaw speaks optimistically of the
financial condition or the country,
which. he says, has passed the crisis
which in the last year caused shrink
age Of the market value of stocks and
bonds.
Our currency system" says the Sec
retary of the Treasury, has been sub
jected during the year to some very
severe tests. Unprecedented prosperity
enc outraged the natural optimism of our
people to such an extent that property
of all kinds found ready and eager buy
ers at figures phenomenally high. A
condition therefore existed which of
necessity could not last Within
year the market value of stocks and
bonds, the proper and legitimate hold
ings of the people, has deprecated in
an amount estimated far in excess or
the cost OF four years devastating civil
war. Yet Notwithstanding this enor-
nous and inconceivable shrinkage, it
has not affected in noticeable. degree
other classes of property. Banking in
stitutions have exhibited no suggestion
OF. weakness, few business failures have
occurred. there has been but slight
curtailment in commercial enterprises,
very little apparent hardship and abso-
lutely no fear of any depreciation in
any form of currency. To all appear
ances the crisis is passed. There now
exists scant reason for apprehension
certainly no occasion for alarm.
by the provision of very wise act
of Congress approved March IA, 1900,
il was made the duty of the Secretary
of the Treasury to redeem United
States notes and treasury notes in gold
on demand. and to maintain all forms
of money issued or coined by the Gov
ernment at a parity of value. Evident
ly the people have understood, as they
are justified in doing, that this statute
authorizes the redemption of silver and
silver certificates in gold whenever nee
essary for the maintenance of parity.
Nothing short of this assurance would
have carried US through the period to
which 1 have referred.
"One well-recognized weakness, how
ever. has been strongly emphasized
our currency system is nonelastic. 1t
does not respond TO the varying needs
Of seasons, or of localities, or of
changing conditions of business. This
admitted defect should be remedied.
But in remedying it no measure should
be considered that will in anywise
weaken that which is now stable, and
no element should be injected that will
cause distrust or doubt. Fortunately,
at the present time no recipient of any
of our several forms of money stops to
examine it's character. 1t is all known
to be as good as gold. for the credit of
the Government is pledged to maintain
its parity with gold. No act should be
passed authorizing the issuance of
anything less safe and secure"
Speaking of the subsidiary coinage,
Secretary Shaw says:
There is now available for coinage
into subsidiary coin less than 100000
ounces of silver. This will be exhausted
approximately at the close of the cur
rent fiscal year. Authority should be
given to recon existing silver dollars
into subsidiary coin, or to purchase ad-
ditional silver with which TO supply
the ever-increasing needs of the coun-
try. The present volume of silver
stored in the vaults of the Treasury is
equivalent to nearly 500 carloads OF
thirty tons each. 1t would cost 100000
to recount it. This enormous amount
is worth in bullion less than half of its
coinage value, but it is all redeemable
I at the discretion of the Secretary OF
the Treasury, in gold Manifestly il
must always be stored or other uses
provided. Whether it be wiser to con-
tinue this burden and purchase addi-
tional bullion for subsidiary coinage
or TO authorize the conversion of a por-
ton of these dollars into more avail
able forms of money, is for Congress
to determine. In any event, some pro-
vision should be made for an increase
of subsidiary COIN"