Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-12-05
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suggest for the consideration Of Congress
two possible plans: First a graduated

suggest for the consideration of Congress
two possible plans: First, a graduated
reserve, determined by statute. The objec-
ton to this plan is that conditions vary
with different seasons. Sometimes the cri-
sis Is deferred, and occasionally the most
stringent season Is during the spring. Sec
ond, a better plan, in my judgment, would
be to clothe the Secretary of the Treas
ury with authority to require all banks, at
certain times fixt by him, to slightly and
gradually increase their reserves and hold
the same within their own vaults, with
corresponding authority to release the same
from time to time as in his judgment will
best serve the business interests of the
country.
If the Secretary of the Treasury were
given 500, 100000 to be deposited with the
banks withdrawn as he might deem ex-
pedient, and If in addition he were clothed
with authority over the reserves of the
several banks, with power to contract the
national-bank circulation at pleasure, In my
judgment no panic as distinguished from In
dustrial stagnation could threaten either the
United States or Europe that he could not
avert. No central or government bank in
the world can SO readily influence financial
conditions throughout the world as can the
Secretary of the Treasury under the au-
thority with which he Is now clothed.
IF it be said that such power. augmented
with the authority which l have outlined
would be dangerous, reply that no man
Department, and no man is likely to occupy
that position, in whose hands such author
ity would not be safe. The best financial
advice on earth Is at his command, and the
seflshness or the unseltishness of the ad-
vice rendered, and therefore, the value
thereof can be readily weighed. The advice
which he can thus obtain is, In my judg-
ment, far better and would prove far safer
than would be the direction which might
be given by board Of governors OF large
centralized bank.
Former Recommendations Renewed.
1 desire to repeat, and emphasize If pos
sible, several of my recommendations Of
previous years.
First. A law giving trust companies OF
large capitalization in large cities the priv
ilege of Incorporating under national law
with corresponding supervision, but with
no authority to issue circulation.
Second The establishment of a depart
ment savings bank in Washington upon the
mutual plan prevalent in most Of the New
England states, in the rope of encouraging
the habit Of saving among Government
clerks.
Third A law licensing customs brokers,
or some other provision by which the GUS
toms department can protect itself from
the few disreputable practitioners before it.
Fourth. provision for a nominal filing
fee for entering protests and appeals in
customs cases, recoverable should the case
be successfully prosecuted.
Fifth. The abolition of all fees and per-
quisities of collectors and other customs
officers.
Sixth. A liberalization of our drawback
laws. Any provision that will assist in
securing a foreign market for the product
of American labor has the unqualified in
dorsement Of the present head Of this de-
partment.
Seventh Legislation which will insure a
merchant marine For years l have urged
this in season and out Of season. The next
twenty years will witness as intense COM
mercial contests for trade expansion as
were ever prosecuted for territorial ex-
pansion. 1t is idle to suppose the United
States can attain any considerable measure
of success without as favorable equipment
as it's commercial competitors.
Eighth. The establishment Of a pneumat-
ic tube, system between the several execu-
tive departments with the District Of Co
lumbia.
Ninth. The early erection of hall Of
records on the site already purchased
The saving In rent would more than pay
interest on its cost, and it's erection would
result in greater efficiency in all the de-
partments.
Estimates for Fiscal Year.
For the present fiscal year Secretary
Shaw estimates total receipts Of $S13 .573, 264
and total expenditures of 1856, 573, 264, max
ing surplus of S,00O,O 600.
For the fiscal year 1905 he estimates that
the appropriations required will be $751;
0,643.
Purchases Of Silver.
AS to silver purchases, Secretary Shaw
says:
I'm my report of last year attention
was called to the fact that bullion must be
had at an, early date for the subsidiary
coinage, and authority was asked for the
recoinage of abraded silver dollars into
fractional denominations. No action hav-
ing been taken upon this recommended ton,
or to provide by other means the supply
of metal required, purchases of silver bull
lion have been resumed under section 1926.
having given q written opoinion to the
effect that authority for purchases existed
under this statute, and that the demand
for these coins might be supplied without
limit. On the basis OF the coinage Of the
last five years, approximately 100000
ounces OF silver will be required annually
for subsidiary coinage, and with the
growth of population and business this
amount will be exheedsd.
IT repeat my Recommendation of a year
ago that section 1927, Revised Statutes be
amended by striking out the provision
which requires silver coins to be paid out
at the mints and at the assay Office at
New York The issue and redemption Of
these coins should be through the treasury
and subtreasuries The mints should pay
out coins only on orders from the Treas
urer The effect of the law as 1t stands is
to create demand on the minis for per-
fectly new coin, although there may be al
ready an abundance OF coin In good condi-
ton in the treasury.
New Buildings.
Speaking og the crowded condition Of