Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1903-12-10
SECRETARY SHAW MENTIONS HIS
asREME IN HIS ANNUAL
REPORT.
REFERS, TO SEVERE TESTS
iowan In the Cabinet Says the Unpre-
cedented Prosperity Encouraged OPP
simism Among the People and Rails
cd Prlces-Featurs of His Report.

washington, ID. u, DeC. o.-f1Uu.
Leslie M. Shaw, secretary of the United
States treasury, in his annual report
for the fiscal year ending June 80, 1908,
which was made public today, refers to
his elastic currency" scheme as the
means of solving questions arising out
of situations such as those recently eX-
perienced by the United States. His
report is very thorough, and is a
bulky volume, dealing with all the mat
tiers which come under the supervision
Of the treasury department. Extracts
from it follow:
The Monetary System.
aour currency system has been sub
jected during the year to some very
severe tests. Unprecedented prosper
ity encouraged the natural optimism
of our people to such an extent that
property of all kinds found ready and
eager buyers at figures phenomenally
high A condition, therefore, existed
which of necessity could not last.
Within a year the market value OF
stocks and bonds, the proper and leglt-
innate holdings of the people, has de-
preciated in an amount estimated far
in excess of the cost of four years
devastating civil war. Yet notwith-
standing this enormous and inconcelv-
able shrinkage. it has not affected II
noticeable degree other classes OF prop
erty. Banking institutions have exhl-
fbited no suggestion of weakness, few
business failures have occurred, there
has been but a slight curtailment in
commercial enterprises, very little ap-
parent hardship, and absolutely no
n ioti in form
of currency. To all appearances the
crisis is passed. There now exists
scant reason for apprehension-cer-
tainly no occasion for alarm.
K HBy the provisions of a very wise act
Of congress, approved March IA, 1900,
1t was made the duty of the secretary
OF the treasury to redeem United States
notes and treasury notes in gold or on
demand, and to maintain all forms OF
money issued or coined by the govern
ment. at a parity of value. Evidently
the people have understood, as they are
justified in doing, that this statute au-
thorizes The redemption of silver and
silver certificates in gold whenever
necessary for the maintenance OF the
parity. Nothing short of this assurance
would have carried us through the Pc
ricsd to which l have referred
One well-recognized weakness, how
has been strongly emphasized
currency system is non-elastic. 1t
not respond to the varying
q of seasons, or OF local.,
or of changing conditions,
lsiness. This admitted defect
ia be remedied. But in remedy
ss.-s n no measure should be consid-
I'D that will in anywise weaken that
9g.i ioa is now stable, and no element
sa6aid be injected that will cause
ajstrlst 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 main
tain its parity with gold. No act
should be passed authorizing the issu-
ancc Of anything less safe and Sc
cure.
National Bank Circulation.
During the fiscal year ended june
80. 1903, national bank circulation in
creased, in round numbers, fifty sever
millions. only twelve millions OF Whlcf
was due to new organizations. Man
ifestly this rate of increase can no
be continued unless additional Uni
ted States bonds are provided, or some
other plan is devised
I'm NV last annual report I called
attention to the fact that the act O
,June %. 1902. which authorized tn
secretary of the treasury to borrow
1870 millions for the construction 0
the proposed isthnlian canal, does no
permit the use of these bonds as Sc
curity for national bank circulation a
Y a less rate Of taxation than / per cen
per annum. l repeat my recommends
tion then made that these propose
bonds be made available as the basi
Of circulation on the same terms a
the consols authorized by the act c
March IA 1900.
r..s N.4;,, p.k.