Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1905-09-29
Addresses Convention Of
Ohio Bankers Association.
Argues Adoption Of More Elias
tic Currency System.
Conelsely and ConsinsingIy Presents Rea-
sons Supporting His Theory.

Cleveland, Ohio, Sept. a..-Thn adj
dress of Secretary of 1hr Tro,,.u,.,,
Leslie M Shaw was the feature of the
i""rii'liH session. today. of the conven-
ton of the Ohio Bankers Association
He urged that Il more elastic c,1rr.nc1.
system be adopted. Mr.. Shaw said in
part:
The fact. and think it is !, fact that
the United States has the best ,.,,rra,,f,
system In the world. does not imniv ~,
the currency system of the linitad Stat.t
is perfect or that it cannot he i,,,nroVcd
1t Is as sal" as any system in ihn world
becauS'' it is established on the nnIv eaf
basis known to man-the gold stn1dnri
1t is the most convenient S-stcn il, -
world because it is constructed on I'll
decimal or metric system. 1t is not nccCs
SIrE to carry Il lightning ciII,.uI,t.r ! .
order to make change.
The system is not perfect largely be
cause ii is nOn-"las;ic. II fan ia rcGnoud
m volume to the changing needs OF sen
sons and Of localities. Attention hns been
called to this many times Ann III. r,.tn,
people. That there will be no ftrt6a,. r.,,,
rency legislation until we shall have. TX
pe1lcncci u pani': nrraSioneu by this want
Of elasticity, an convinced. the cuun
try does not appcciat" the danger and
until the danger l$ fully understood ~
remedy will be- applied. We came nearer
such 4 panic Sept 20. 1902. than most pro-
pie appreciate. The fact that we then Is
cnped does not raise Il presurnniion thai
We Will always escape it. A giaring de-
tcct II a vital point will sometime. soon
or late. assert itself. Meantime a rem
cdy should be discovered discussed ana
rs far as possible, agreed upon 50 thai 1
may be presently ,;ppiied WHEN the pcopI
are ready for it.
Annually W.. have an EXCESS Of none
during the spring and summer months
Annually we pass through d PERIOD O.
anxiety as we approach the period Of Gro,
moving. for annually the value Of mon.
Is relatively insufficient to met this sud
den increase uI business.
We do Got need and must not have in
lation. The average amount Of rnone,
is. in my Judgment. abundant. rh;. ,ith
Guilty lies in the fact that the volume rc
mains stationary.
Now what shall be the remedy? S!lal
ii be asset currency" IN the popular ;ic
ccptancc of that term. | answer no. no
Asset currency as commonly understood
would mean initiation ana that we mus.
not have. Asset currency rs commons
understood would be supported onl" b
the sclvency of the bank OF issuc. Tina
must not be. Shall it b" emergency cur
rency! in the popular acceptance Of thu.
term. l answer. no. Tho United State.
originates more commerce than any othe,
country on the map. But our chief com
mCr,ial city Is not the worlds clearins
house Il ought to be, but it is not. On
reason why 1t is not is tic fact that i.
has sometimes reSorted TO clearing houS
certificates. which is II plea of guilty TO Al
indictment charging bad management 10
CdlIy or bad legislation nationally. an,
the financial world charges both. Clear,
ing house certificates must never he au
thGr.zed by law. Let those who love oul
country and those who conserve her cred
it set their faces against such Il courS
with the same intensity as they resist tn
free ana unlimited coinage Of silver
Clearing House certificates debasc GU,
currency with tho consent Of these VII
~, ~. u,
the nation, The free coinage If @ilve:
would dcbase it through political uphcav
III. The threat of both, doubt not, con
tributes to that distrust which prevents
foreign bankers from keeping their IN
tcrnatiOn&l balances i'll America. What
ever the remedy shall b.. il must not I'd
vertiSe our calamity Q" our extremity
Among the many remedies suggested ron
Il ppealed 10 me as strongly rs tn. author
iZation of additional national bunk cir
cUlation. This method involves the RICH
OF national banks to increas" their cIrru
lation il an amount. perhaps, equal IT, )
PIT cent. of their outstanding volume u
secured ny COVE rnI1cnt bonds
On This additional circulation the hanl
should pay Il tax of ! or = per cent. during
the time it is maintained, and the govern
mcnt in consideration % this tax should
Suur"int"c it's redemption.
You may call this, II YOU pleas. :"
emergency provision. So it is; hut il in
irct.; into our circulation no new form
Of money as an clement of alarm. l3l
eliminating th" only statement on IN
present hanknntc. This not" is >'"curet
l,y bonds of the United States" The add
tionHI currency could be E..dc idcItica
with that based on government bonds
III. comptroller of III" currency and tn
bank issuing til" currency would alon
know of its "XjStCnrc. II you'd not ad
vnrtiSC It's existence OF our extremity
and can scarcely conceive of condition
under which it would remain out 60 days
Ii could be printed and kept ready foi
.t-:t 1itritt nd