Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1903-12-09
SECY. SHAW ON
CURRENCY SYSTEM.
In His Report He Says That Dur.
ing the Year it Has Been Sub
jeetcd to Very Severe Tests,
IT is VERY NON-ELASTIC.
1t Fails 10 Responed to the Varying
Needs Of Seasons or Changing
Conditions of Business.

Washington. Dec lin his annual
report submitted to the speaker Of the
house, the secretary OF the treasury
Says ON the subject Of the monetary
system:
'Our currency system has been sub
jected during the year to some very Sc
we're tests. Unprecedented prosperity
encouraged the natural optimism Of our
people to such an extent that property
of all kinds found ready and eager buy
ers at figures phenomenally Nigh a
condition therefore existed which OF
necessity could not last. Within year
the market value Of stocks and bonds.
the proper and legitimate holdings OF
the people, has deprecated in an
amount estimated far in excess Of the
cost of four years devastating Ciyil
war. Yet notwi thstandng this enOr-
nous ana incOnceyable shnnkage, il
has not affected III noticeable degree
other classes of property, Banking in
situations have exhibited no suggestion
OF weakness, few business failures have
occurred there has. been but slight
curtailmcnt In commercial enterprise,
very little apparent hardship. and ABB
solutely no fear OF any depreciation Ia
any form Of currency no all appear
ances the crisis Is passed. There now
exists scant reason for apprehension
certainly no occasion for alarm.
ACT OF MARCH "A, 1900.
''By the provisions of a very wise act
"a In
was made the duty Of the secretary OF
the treasury 10 redeem United State
notes and treasury notes In gold on de-
mand, and TO maintain all forms Of
money Issued or coined by the govern
lnent at a parity Of value, Evidently
the people have understood as they are
Justllied In doing, that this statute au-
thorlzes the redemption of silver and
silver certificates In gold whenever
necessary for the maintenance of par
lily. Nothing short OF this assurances
would have carried us through The per.
iod to which | have referred
A RECOGNIZED WEAKNESS.
"One wel-recognzed weakness how
ever has been strongly emphas ze1---
our currency system Is nonelastic. IT.
does not respond 10 the varying needs
of the seasons, or Of localities. This ad-
United defect should be remedled But
In remedylng Il no measure should be
considered that viii In any wise weak
en- that which Is no Wstable and no Gle
ment should be injected that viii cause
distrust or doubt Fortunately at the
present time no recipient Of any of our
several forms Of money stops TO exam.
Inc it's character. II IL an known TO be
as good as gold. for the credit of the
government 10 pledged to maintain its
parity with gold No act should BIO
passed authorizing the issuance Of any
thing less safe and secure.
NATIONAL BANK CIRCULATION.
During the fiscal year ended June 30,
1903, national bank circulation Increased
In round numbers $4,000 900. only slO,-
10000 of which was due 10 new organ
izations. Manitestly this rate of in
crease can not be continued unless addi-
tional United States bonds are proyid-
ed, or some other plan is devised
In my last annual report ! called at
tention to the fact that the act of June
IS 1902 which authorized the secretary
OF the treasury to borrow $3.50 600 900 for
the construction of the proposed 18TH
mian canal, does not permit the use of
these bonds as security for national
Dank circulation at less rate OF taxa
tion than / per cent per annum. ! re-
peat my recommendation then made
that these proposed bonds be made
available as the basis of circulation on
the same terms ms the consos author
ized by act OF March "A, 1900
SUBSIDIARY COINAGE.
"rhere is now available for coinage
x,t ,.ha Ia
ounces of silver This win 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.
dtional silver with which 20 supply the