The Providence news. (Providence [R.I.]) 1891-1906, 1906-02-08
EX7 RA.
x O'CLOCK.
SECRETARY SHAW
ON THE REFORM
Of CURRENCY

Washington. Feb. Sin reply to a let
ter from Jacob II. Schiff enclosing a re-
port OF the committee on finance and cur
rency OF tho chamber OF commerce ano
a copy Of his remarks on that report be-
fore the chamber. Secretary OF the Treas
ury Shaw has written the following let
ter:
MY Dear Mr.. Schin-I am In receipt
Of your letter OF Feb. 2. accompanied by
q copy Of the report OF the committee
on finance and currency OF the New York
eha mber Of commerce. I do not wish 10
enter into an extended discussion Of this
matter. and write simply TO express re-
gret that the committee didn't go some
what deeper into the subject
las the question was referred on your
motion l think the committee should have
given YOU an opportunity TO be heard
This, / am advised, was not done. or
those who study tho question nine men
out OF ten agree that something should
be done 10 make our currency system
elastic but OF the nine who unite that
something should be done II is difficult 10
find two who agree upon the measure that
shall be adopted.
In the committees report / find this
language:
The redemption OF national bank notes
Ia limited 10 total Of s3,o0o0o0 per
month. thus tying mp to large extent
the only source Of redemption we have"
''rhe most unfortunate feature OF this
statement is the fact that there Is now
no limitation on the redemption OF ma
tional bank circulation.
Il am not sensitive that the recon-
mendatlo contained In the report should
be disapproved | did not submit Il as
the only method. I simply recommend
one way. which. i'm my Judgment, would
measurably relieve. and I had hoped the
committee OF the chamber of commerce
would recommend at least another II
does make one recommendation. ! wrote
f..
"We therefore. are of the opinion that
the law restricting the limit OF redemp-
ton of national bank notes to 100000 a
month should promptly he repealed and
the banks be permitted 70 issue I'm return
their currency at will
I'm this way would be inserted In oul
existing system the elements OF issue and
redemption 81 necessary I'm giving some
elasticity at least TO the great mass os
our bank issues now clogged for lack ot
movement"
lie regrets that the committee ala not
give the subject the consideration which
is it's due While there is n law limiting
the amount OF lawful money which the
bnrks may deposit for tho retirement a
ejaculation 10 $4,000 600 per month. there
Is no limitation on redemption Of national
bank Iotcs and no limitation on the re-
tlrcnicnt Of national bank circulation by
banks that wish 20 deposit the'r own
notes.
The limitation Is upon the contraction
of lawful money by the deposit thereof
for the retirement OF bank circulation.
81 assume, therefore. that the commit
tee intended to recommend the repeal OF
the ! initiation. I beg 10 suggest that, In
my opinion. the repeal OF the provision
would not effect the remedy.
"The repeal OF s3.o00.000 per month limi-
tatIon on the amount OF lawful money
that can be taken out or circulation for
the retirement OF national bank circula-
tion would make IL possible To retire all
our national circulation IN q given month
~ all national banks studied the ques-
tlon as closely as do a few banks in New
York city"