The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-09-03
Secretary Shaw's Speech.

The secretary OF the treasury made a
very practical and common sense speech
last night to the business men Of Chi
cago upon the business conditions exist
ing and as compared with the prevailing
depression and panic which projected
its hating influence into the years 1894,
'95. 90 and '97.
No better or more effective answer could
be given to such a pessimistic diatr1be as
that uttered by ex-senator David B. Hill
the other day., than this comparative
statement by Secretary Shaw who demon
strates that our prosperity is not illusory
and unreal but is real, redundant and in
deed tangible and visible, apprecable by
the senses. The single fact that we are
consuming about IS per cent Of all we
credibility of the predictions Of disastrous
collapse. Such predictions were made at
the very commencement of the present
term Of prosperity and have signally
failed. There is far less reason to credit
them now. To be sure. the country has
the business sense that we are without
a reckless speculative element, but it has
been adequately demonstrated by the in
dustrial stock imitation episodes of the last
three years, that such liquidatiens as
have followed the debauch periods had no
agencies upon the legitimate Industrial
and commercial activity of the nation.
Secretary Shaw shows unerringly that the
legislation Of March A. 1900, has removed
the most serious menace which was con-
tributory to the disasters Of 1898, as it
provides for the maintenance Of the parity
with gold of all forms Of money coined
or issued by the government, and makes
provision for the negotiation Of loans to
maintain the gold redemption fund.
The secretary, with reference to legis-
lation as to the currency reform, follows
President Rooseve1t's recommendation In
his message to congress Of last Deem
Der, viz, that provision be made by
congress by which, automatically, the ag-
gregate number Of dollars shall increase
whenever and wherever moro dollars are
needed for the purposes Of legitimate
business (the president is more explicit
than the secretary upon that latter
point. The method suggested by the Sec
rotary is similar to that successfully used
by the Bank Of England and the Reichs-
bank or Imperial Bank of Germany. He
would allow the national banks to issue,
IN CD 80
currency, circulating notes equal to so
per cent Of their, bond-secured circula-
tion subject to a tax Of per cent, the
issue to be retired at will or by the direc-
ton of the controller, by the deposit of a
corresponding amount of lawful money
tax would insure, the retirement Of the
extraordinary issue which would be in
response to a demand Of business neces-
sity, as in crop-moving time in the
autumn In the Reichsbank, if any notes
are issued above the amount which the
bank Is allowed by law to put out with
out special security, they must be Sc
cured by treasury notes, specie or the
notes Of other solvent banks; and, if the
| surplus notes are not so secured, a tax
of per, cent is imposed upon them and
| this makes extra issues so Improbable
| except at a time of severe money pressure
| that they are quickly retired when the
money market returns to it's normal con-
dition: Under this system, when discount
rates are high enough, thru the stronger
| demand for money, the extra issues come
out in the natural course of business
The plan suggested by Secretary Shaw
would accomplish the same end. 1t is
difficult to see how any rational objection
can be made to it. 1t is thoroly conserva-
tive and effective of the object desired.