New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-09-29
SHAW TALKS TO BANKERS.
FOR EL4STTC CURRENCY.
Would Haze More Money for Circa-
Iation en- HaTeSt Time.

Cleveland. Sept. 2S.-The address OF Leslie M
Shaw, Secretary Of the Treasury. was the feat-
ure Of the morning session to-day OF the con-
vention of the Ohio Bankers Association He
urged that a more elastic currency system De
adopted
Harvey D Csoulder. of Cleveland. delivered an
address on foreign commerce. Others who spoke
were James r. Branch, of New-York, whose
subject was The American Bankers AsSocla-
tons Money Order; George Guekenberger, OF
Cincinnati; r. w. FTrestone, Of Lisbon Ohio
and W. A Graham. of Sidney, Ohio. various
reports were submitted and acted upon
Mr.. Shaw said. in part:
The fact, and 1 think it Is fact that the
United States has the best currency system IN
the world does not imply that the CURRENCY
system of the United States is perfect or that II
cannot be improved. 1t is as safe as any sys-
tenn in the world because il is established on
the only safe basis known 10 mantle gold
standard.
The svsten is not perfect largely because it
is non-elastic. It fails TO respond in volume 10
the changing needs Of seasons and of localities.
That there will be no further currency leglsla-
ton until we shall have experienced q panic oc-
casioned by this want OF elasticity, am con
WINGED The country does not appreciate the
danger We came nearer such a panic Septem-
Der 80, 1902. than most people appreciate Inc
fact that we then escaped does not raise q pre-
sumption that we win always escape It
Annually have an excess OF money during
the spring and summer months. Annually We
mass through q period of anxiety as we approach
The period of crop moving, for annually the vol
.Irne of money is relatively insufficient to meet
This sudden increase Of business.
Now, what shah be the remedy? Shall it be
esset currency? In the popular deception of
that term I answer no! Asset currency as
commonly understood would mean imitation and
that we must not have. Asset currency as COM
monty understood would be supported only by
the soIvency of the bank OF issue. That must
not be. Shall il be emergency currency? In the
popular deception of that term l answer no.
Among the MANY remedies suggested none APP
pealed to me as strongly the authorization Of
additional national bank circulation rms
method involves the right Of national banks TO
increase their circulation in an amount perhaps
equal TO so per cent Of their outstanding volume
of government bends secured circulation, on
which tbs bank should pay a tax Of or per
cent during the time IT is maintained, and the
government, IN consideration OF tnlS TAX, Shoutd
guarantee its redemption
You may call this, If you please an emergency
provision. SO it is but 1t lJects into our clrcu-
tation no new form of money as an element or
alarm BY eliminating the one statement on
the present banknote, This note Is secured by
rency could be made identical with that based
on government bonds. The Controller of the
Currency and the bank issuing the currency
would alone know Of its existence It would
not advertise its existence our extremity, and
can scarcely conceive Of conditions under
which Il would remain out sixty days. It could
be printed and kept ready for issue as occasion
might require. and If would be retired, not by
gathering up each individual bill, but by deposit
of an equal volume of money with any sub
Treasury Then the notes as they came in would
be charged against this deposit until 1t was ex-
hausted. after which redemption and reissue
would run on as before.