Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1905-12-06
SECY. SHAW FAVORS
An ELASTIC NvNEY
Secretary of the Treasury Sub
mits His Annual Report to
the House Today
SILVER BULLION ALL COINED
Question Of Subsidiary Coinage Is Be-
coming mportant-Erection of Post
office Buildings In Smaller Towns
and Cities Not Favored--The Draw
back Systom.

Washington, Dec. 6.--Thc report of
Secretary OF the Treasury Shaw was
submitted to congress today. The to-
tai receipts for the fiscal year ending
June so, 1905, We're $697. .101 269.95. The
tota. expenditures for the same period
were $72O,1O5, ,49S.55, showing a deficit
OF S23,OO4.22s.6O.
Secretary Shaw renews his recon-
nendations for an elastic currency.
He says:
THE necessity for an elastic cur
rency has received fresh emphasis in
tile financial conditions Of the last few
months. Millions were loaned, ap-
lner, and call money reached % per
cent In November The exceedingly
low rate was about as dangerous as
the high rate, for the latter was the
logical result Of the former. Such eS-
tremes can and should be rendered inn
possible.
"As means to this end, suggest the
advisability Of permitting national
banks to issue q volume OF additional
government guaranteed currency, equal
In amount to so per cent Of the bond
secured currency maintained by them,
but subject to tax OF 8 or 6 per. cent
until redeemed by the deposit OF a like
amount In the treasury. BY eliminate
ing the words secured by United
States bonds deposited with the treas
urer Of the United States from ma
tional bank notes now authorized, the
additional currency would be identical
ir form with that based upon a de-
posit Of bonds, and its presence would
not alarm, for 1t would not be known.
No new and distinct or unguaranteed
form OF money should be injected into
cur system. The tax would be ample,
and more than ample. to cover the risk
to the government in guaranteeing re-
demption. Manifestly. this additional
until interest rates exceeded 6 per
cent, and 1t would as promptly retire
when rates became normal. Under
these or any similar provisions 10 per
cert money would be well nigh inn
possible and the treasury department
would be saved most embarrassing
responsibility. This may not be the
only means Of adding an element Of
elasticity to our currency system, the
need of which is universally recogniz-
ed. I suggest 1T as the plan which
to my mind seems most feasible, and
one fraught with no danger"
Subsidiary Coinage.
The secretary suggests the necessity
for subsidiary coinage. He says:
"The time has arrived when it must
be determined whether the govern
ment will again become purchaser
of silver or will use for this purpose,
as the demands of the country require.
the five hundred car loads of silver
dollars now in the vaults of the treas
ury, the metallic value of which is
approximately SO per cent of their cir
culating value. Since their recoinage
into smaller denominations will in no.
wise contract the volume Of currency,
every principle Of prudence points to
their gradual use rather than to the
purchase of more silver. In any event,
! think the abraded and uncurrent sill
yer dollars, which can not he recoined
into dollars without loss, should be
converted into subsidiary coinage at
not to exceed $5,000,000 per annum."
He recommends that the government
pay the transportation charges sent to
the treasury for redemption in the in
terest of cleaner currency.
The Drawback.
"under existing laws manufactured
articles produced in whole or in part
from imported material, and exported
under certain conditions and limita-
tions are allowed a drawback equal to
80 per cent of the duty paid upon the
imported material thus consumed. In
every feasible way the treasury de-
partment has endeavored to simplify
the application of this principle, and
to make it's operation practicable. In
my Judgment, the law should be re-
vised and simplified, and properly
safeguarded substitution, similar to
that now allowed in France, should be
authorized The policy Of protection
for the American producer Within the
American market having been adopted,
and its application to nearly every in
dustry established, 1 think the time
has arrived when the government
should adopt a, policy of liberality to
the exporter Manifestly the govern
ment can not protect the American
producer in the foreign market. The
best it can do Is to insure the employ
er of American la'bor, who exports the
product of that labor, every possible
advantage and encouragement Manu-
facturers should be limited to the en-
ployment Of American labor: they
should pay the American scale OF
wages, but when they export the pro-
duct Of this labor, thus placing it be-
yond competition with others within
the American market, they should
have the limit of encouragement in the
way of cheap raw material and the
right of substitution"
Public Buildings.
The secretary recommends larger
a appropriations for government build
ings in Toledo, o., Atlanta, Ga, and
pes Moines. Iowa. He also says it is
unwise. in his opinion. to place post