Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1906-12-07

The annual report of Secretary
Shaw was submitted to congress today.
and attracted interest to that portion
wherein recommendations are made for
reform in currency. The report, aside
from the statements regarding the con-
dition Of the treasury. reviews az
length the contingencies that were met
by the department during stringencies
in the money centers. After reviewing
the need of more elastic currency,
which under the present laws remains
as fixed quantity, and regarding
credit currency and a proposed plan
to enforce co. cooperation between banks,
the report says:
Much can be said in favor of credit
currency for permanent maintenance.
The addition thereof to our present
currency system has been urged for
half a century Many bills have been
introduced embodying the plan; con-
gressional committees have from time
to time made favorable reports there
on; and it has quite recently received
the unqualified Endorsement of joint
committee representing the commercial
and banking organizations and COM
posed of men OF the very highest bus
iHess and financial standing.
IF new currency system were be-
ing devised, unquestionably this plan
would be included, and it might possi-
bly, take the place of the present bond
secured circulation. No one now, how
ever, recommends 1t as a substitute.
Those who favor 1t propose Its incor-
poration into, rather than its substitu-
ton for, our present system.
whether it will work as freely and
as automatically in conjunction with
other bank-note circulation as when
the entire issue of bank notes is based
on credits can be determined only by
trial. To what extent the existence OF
state banks, savings banks, and trust
companies will afford a resting place
for such an issue is another matter
which can not be computed. Until the
experiment is tried both these elements
will remain matters of estimate If not
of conjecture. 1t must not be forgotten
that a given per cent of Increased rap
fatty of redemption when money is re-
dundant over that prevailing when
money is scarce will not work the same
aggregate of contraction when less
than one-fourth of the bank circulation
is based on credits as would result II
all bank circulation were of the KIND
proposed.
The circulation Of the country has
increased during the last five years
more than $600,OO0,000, or $l20,OO0,OOO
per annum, and business interests have
certainly kept pace with this increase,
and interest rates thruout the world
are now unusually high. l would not,
therefore, view even with apprehension
of evil any credit currency legislation
so restricted as to render Impossible
the permanent maintenance OF more
than $2OO,OOO,000.
Central Bank.
''Seyeral other plans have been pro-
posed for supplying the element of
in our currency system.
Many practical and well informed fin
anciers have recommended central
government bank patterned, in some
measure at least, after those of the |
principal financial countries of Europe.
The abolition Of the independent treas
ury would be of course involved i'll
such a plan. Government money would |
De then regularly deposited in this /
central bank, from which disburse-
nerts would be made, and the govern
nent's supervision Of and interference
With the monetary operations and the
financial condition Of the country would I
De effectualy eliminated.
cat first blush this seems desirable.
out in practice / fear it would soon be
'ound to work less satisfactorily than
he present system. Such a bank
would of necessity be governed by
BOARD, the members of which would