Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1905-09-29
Volume Fails t. Respond to Chan Sing Needs
Of Seasons and Localities
GLAZING DEFECT At A VITAL POM
Country Frequently on Verge of Par
During Crop BSVing Season.
ADVISES MORE BANK CIRCULATION
emergency Notes to BE Printed and
Held Ready for Issue I'm Certain
Conditions Under Certain
Safeguards.

CLEVELAND, Sept. 2s.-The address Of
Secretary of the Treasury Leslie Nj. Shaw
was the feature of the morning session
today OF the convention of the Ohio Bank
ers association. He urged that a more
elastic currency system should be adopted.
Mr.. Shaw said in part:
The fact, and l think il Is a fact. that
the United States has the best currency
system In the world does not imply that
the currency system of me United States
II Is as safe any system In the world
because IL Is established on the only safe
basis known to man-the gold standard.
1t is the most convenient system in the
world because II is constructed on the
decimal or metric system 1t is not neces-
sary to carry lightning calculator in or
The system is not perfect largely because
II is nonelastic. 1t fails to respond in vol
ume to the changing needs of seasons and
of localities. Attention has been called to
this many times and by many people. That
tion until we shall have experienced
panic occasioned by this want of elasticity
1 am convinced. The country does not
appreciate the danger, and until the danger
is fully understood no remedy will be APP
piled. We came nearer such a panic Sep
ciate The fact that we then escaped does
not raise a presumption that we will al
ways escape Il. glaring defect at
vital point Will some time soon or late,
assert itself. Meantime a remedy should
be discovered, discussed and as far as
possible agreed upon so that Il may be
promptly applied when the people are
ready for II.
Annually we have an excess OF money
during the spring and summer months. An
nually we pass through a period of anxiety
as we approach the period of crop moving,
for annually the volume OF money is rela-
crease OF business. We do not need and
must not have imitation. The average
amount of money Is; in my, Judgment,
that the volume remains stationary.
No Asset Currency.
Now, what shall be the remedy? Shall
1t be asset currency In the popular ac-
ception OF the term, answer no.
would mean. lnnatiOn ana tnat we must not
nave. Asset currency as commonly under
3,,o STOOD woH;d tI be supported % only by the
not be. Snail IL be emergency currency
In the popular acception OF that term
Tfo sf9nfted stares originates more com
meICe thAn any other country on the map,
but our chief commercial city is not the
worlds clearing mousse. 1t ought to be,
but IT is not. One reason why 1t Is not,
is the fact, that 1t has sometime resorted
to clearing house certificates which is a plea
OF guiIty 10 an indictment charging pad
management locally or bad legislation
nationally, ana the financial world charges
both. CIearing mouse certificates must
never be authorized by law. Let those
VINO love our country and those who con-
ceve her credit set their faces against
sucn a course with the same Intensity as
they resist the free and unlimited coinage
OF oliver. Clearing house certificates de-
base our currency with the consent OF those
WIN are supposed TO be the best tnancieFs
in the nation. The free coinage of silver
would debase II through political upheaval.
Whatever the remedy shall be, 1t must not
advertise our calamity or our extremity,
Among the many remedies suggested, none
appealed to me as strongly as the author
iZation of additional national bank cir
culation. This method involves the right
OF national banks TO increase their cir
NlaN Ion In Mt aaFh nl to
30 per cent OF their outstanding volume of
government bonds secured circulation, on
which the bank should pay tax of or
per cent, during the time II is maintained,
and the government in consideration of this
tax, should guarantee it's redemption.
Keep Shortage Dark.
You may call this, II you please, an
emergency provision. So IL Is, but II in
money as an element of alarm. BY elm
mating the one statement on the present
bank note. this note is secured by bonds
rency could be made identical with that
based on government bonds. The comp
troller OF the currency and the bank is
its existence. II would not advertise its
existence or our extremity, and can
which Il would remain out out sixty days days.
II couic be printed and kept ready
for issue as occasion might require,
gathering up each Individual bill, but by
deposit of an equal volume Of money
with any suhtreasury Then the notes, as
this deposit until IL was exhausted, after
which redemption and reissue would run
on as before.
The convention at the afternoon session
elected oficers and voted not to recon-
mend for passage by the next legislature
a new banking law providing for the in
spectlon Of all banks. both state and pri-
Vate