The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1903-09-16
SHAW'S CURRENCY PLAN
Outlines Method by Which Elasticity
Can Be Secured.
fAV0RS AUTOMATIC DOLLAR


That Will Retire When Not Actually
Needed-In a Speech on "Thc Business
Outlook" Says He Would Give the Ma
tional Banks More Scope.
Chicago.-At the Auditorium, before
several hundred business men Of Chi
cago and other cities, Secretary of
Treasury Shaw spoke on THE Busi
ness Outlook" The meeting was un'
der the auspices of the National Asso'
citation Of Merchants and Travellers.
Secretary Shaw spoke in part as fol-
lows:
'As nearly as can be estimated, the
annual productive capacity of the
american people is $11,000,OO0O 900.
! This does not include Implications.
This does not include raw cotton and
manufactured cotton; but raw cotton
and the value added thereto in the
process of manufacture.
of this We export $1,500, 100000,
and import 81 900, 100000 of other mer-
chandise mainly non-competitive with
our own products We therefore con-
sumo the equivalent of rninety-fve per
cent. of all we produce. Not while
these conditions continue will prosper
ity cease.
1--WE are the most prosperous people
in the world, because we both produce
and consume more than others. The
little that we sell abroad, about ten
per cent of our net production, and the
little we purchase abroad, six or seven
per cent. Of our net consumption con-
stitute no challenge to the statement
that our prosperity rests with our
selves.
UNLESS our factories and workshops
voluntarily close, or labor voluntarily
refuses employment, or commerce vol
UNFAIRLY ceases its activity, there Is no
occasion for alarm.
'It is true that very respectable
number Of very good people, and In
that number desire to be claSsed, be-
lieve our financial system, good as 1t
is, might be improved by adding an
element of elasticity. do not think
there exists any great number who be-
lieve we should have any initiation.
Eight years ago we had S21 per cap
ita. Now we have certainly more than
500, and probably nearly $50 per cap.
ita. Conservative business men and
conservative bankers do not generally
consider this an insufficient normal
minimum volume of currency. l re-
peat. the only criticism now offered re-
Iofac fo tho 1vn nf Of ola StioifC
There is now no statutory prohibi-
ton against the well-nigh inherent
right of banks to issue circulating
notes. This right exists throughout the
United States, but subject to q tax OF
ten per cent. per annum. This tax is
prohibitory.
"If I were given authority to formu-
late a measure that would provide the
requisite elasticity to our present cur
rency system l think I should add an
amendment permitting national banks,
with the consent Of the Controller OF
the Currency, to issue a volume of cir
culating notes equal to fifty per cent.
of their bond secured circulation, at q
tax Of FIVE per cent, the same to be re-
tired at will or by the direction Of the
Controller. by the deposit Of an equal
amount of lawful money with any Sub
Treasury.
"Three things I know. First, this
additional circulation would spring into
existence almost instantly whenever
and wherever interest rates advanced
to the point Of profit. Second, it would
as promptly retire whenever interest
rates became normal. Third, it would
be absolutely safe-as good as the pres
cnt national bank issue and with a
slight and immaterial change Identical
in form and appearance-for the Gov
ernment.. amply protected by the five
per cent. tax. would underwrite it.
But you say this is emergency cur.
reNcy. Anything more is imitation"