Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-06-21
NEED OF ELASTICITY
Secretary Shaw on the Cur
rency System.
HE POINTS OUT ITS DEFECT
Address to the Bankers of West Vir-
ginia.
SPEECH BY SENATOR ELKINS
Says That We Have Not Yet Learned
How to Distribute the
Country's Wealth.
HE POINTS OUT ITS DEFECT
SPEECH BY SENATOR ELKINS

Virginia Banks Association at Elkins, w.
Va, yesterday, the features were addresses
by Secretary of the Treasury Leslie NJ.
Shaw and Senator Elkins. The convention
was brought to a close last night with
banquet at the home of Senator Elkins.
Officers We're elected when the session was
taken up yesterday, and Clarksburg was
selected as the next place of meeting.
Secretary Shaw addressed the convention
on Trade Expansion" In his remarks he
touched upon the conditions of commerce
as they exist today. The nineteenth CEN
fury was one of territorial expansion. He
sald that as long as dividends are the test
the banks of New York and San Fran
cisco would not be the clearing house of the
world, even II our exports and imports pre-
dominated over those of other countries.
Continuing. he said:
THE fact, and / think II 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 1t can't be improved. 1t Is
the most convenient system in the world
because Ii is constructed on the decimal or
metric system. 1t is not necessary to carry
a lightning calculator in order to make
change.
System Needs Elasticity.
1.-THE system is not perfect largely because
1t is non-elastic. 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
there Will be no further currency leglsla-
ton until we shall have experienced penic
occasioned by this want of elasticity, am
convinced. The country does not dppreci-
ate the danger, and until the danger is
fully understood no remedy will be applied.
We came nearer such a panic September
30, 1902, than most people appreciate. The
fact that we then escaped does not raise
presumption that we will always escape. A
glaring defect at a vital point will some
time, sooner or later, assert Itself. Mean
time a remedy should be discovered Gis-
cussed and as far as possible agreed upon,
so that it may be promptly applied when
the people are ready for it,
Let me define this defect more specifical-
ly. Annually we havea excess of money dur
ing the spring and summer months. Annu-
ally we pass through period of anxiety as
we approach the period for crop moving. for
annually the volume of money is relatively
insufficient to meet this sudden increase of
business.
Imitation Not Wanted
I'VE DO not need and must not nave in
natiOn. The average amount OF money is
In my Judgment abundant The difficulty
lies in the fact that the volume remains
stationary. The result is as unsatisfactory
as 1t would be for a railroad to run the
same number of freight trains with the
same number of cars on the same schedule
OF time at all seasons of the year, rumDIng
along empty in June and overloaded in
October II such a policy were pursued by
railroads the unnecessary cars would nat
urally invite loads of straw and chsf and
worthless plumber, and when the time came
to use the cars in legitimate business much
disturbance would ensue while they We're
being uniOaded and fitted for profitable emf
ployment. Similar conditions occur annually
in our currency system.
The Secretary spoke for more than an
hour and his humor and business doctrine
was frequently applaUded by the delegates
Senator Elkins was also well received by
the financial men OF his home state. He
spoke on the income and inheritance taxes
and said that the twentieth century was
getting ready for the readjustment of the
interests of humanity.
Money Concentrated Power"
Senator Elzins discussed the practical
side of commercial life and especially the
important role played by bankers. In con-
demning usury, he said the price of money
Is regulated by supply and demand, but
that 1t is human nature for one to try to
get the most possible for anything he has
TO market.
Money In a certain sense is concen-
Il
II is a most loyal and unfailing friend The
most lonesome person in all the world is
one walking the highways without a dol
lar Money Is an order on the world for
what the world produces, and In all coun-
ored"
The popularity OF the pursuit OF money
was illustrated by this story:
y great hnancier, now approaching
ninety years OF age. worth more than a
hundred million in property easily convert
lbie INTO cash, whose name is known all
over the United States, speaking to me
about the necessity OF making money. at
tending closely to business, losing no time
and gathering a few dollars each day.
turned. and with great earnestness said:
Dung man. money is never uufashionable'
nave observed that the remark of this
wise man Is true"
speaking OF the passage by Congress ten
years ago OF his resolution recurring that
the sale OF government bonds must he hv
public sale. Senator Elkins told OF the sale
or one hundred millions OF bonds at ia
when the bonds had brought only Ju4I at
private sale. He said: After the passage
or the resolution Russell Sage tele rra 7,hsd
me that | had saved the government six
million dollars, and l have always been
proud OF that telegram"
IN advising against the error of thinking
thAt money brings happiness and every
good thing In life. Senator E!kins said:
after certain point wealth becomes
a huid den. robs its owner Of ease aud repose
80 AAstNt pOStFNtu now eager and willing
people are to struggle along through life
with the burdens OF wealth upon them
Very rich men never whistle. Poor men
always do. Bird songs are In the hearts
or the poor men. This is well. 1t would
not be right that only the rich or the mod
erateiy rich should be happy This would
not be fair adjustment OF things In
every condition OF life there Is compensa-
ton
Continuing Senator Elkins saII great
riches are often a burden and extreme
poverty curse. lie declared that poverty
and want viii yet be banished from the
world. He said:
Improper Distribution of Wealth.
There IS enough wealth in the world now
TO prevent poverty, but we have not yet
learned how to distribute It. We under
stand the ways of accumulation but rot of
distribution. Society and government are
constantly struggling with great questions
Society. .under u free government has
reached the point where IL can in the end
get what II demands. what Is best for It.
and protect itself without force"
Competition and individuallssn go hand in
hand" said the senator. land up to a certain
point are wholesome and beneficial 10 com
merce and business.
'Unrestrained competition In the business
world" he said, throws society back on