Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-11-12
SECRETARY SHAW FOR REFORM
Will Urge Currency Legislation in
His Report.

Secretary Shaw today received the cur
rency commission of the National Bankers
Association and the New York board of
trade. in session here. The members of the
commission discussed currency reform with
Secretary Shaw and found him in hearty
sympathy with the movement. Frank Van
derlip, former assistant secretary of the
treasury, Is one of the New York board of
trade members. working upon the problem
One thing that will be insisted upon by
practically everybody, including Secretary
Shaw, Is the repeal of the law that limits
the retirement of national bank notes to
S3,OOoOO0 each month. 1t is the desire of
everybody to permit a speedy retirement Of
circulation in times of cheap money as well
as quick relief In times Of stringency.
Strong efforts will be made by Secre-
tary Shaw to get Congress to enact cur
rency legislation at the coming session of
Congress. 1t Is known that he proposes
20 devote an important part of his annual
report to that question, and will strongly
urge immediate action.
One reason Secretary Shaw wished to
remain in the cabinet was to use his in
nuence to secure strengthening of the cur
rency system. and whether he Is successful
or not he will retire March 4, at which
time he will have completed five years
in that department.
With the assistance Of President Roose-
Welt, who also thinks no better time than
the present could be had for reform legis-
lation. and who will discuss 1t In his mes
be able to accomplish something He al
ready has the promise of a number of
prominent men in both houses to back him
In his efforts. and he hopes that the clos
Ing days of his administration may see a
realization of his views
A month or SO ago Senator Spooner an
nounced In an interview that he thought
currency legislation should be taken up at
the coming session of Congress, but Sena-
tor Beverldge opposed this view declaring
that there was no popular demand for 1t
and that II could go over until the session
OF Congress a year from now. Since then
there mas been little published either way
to show how the republican leaders stand
on the subject.
In the four and half years of his guar
dianship OF financial interests for Uncle
Sam Secretary Shaw has many times seen
the necessity for legislation that would
give relief in time of financial stringency
In number Of pinches he has had to re-
sort to eNpedients which he disiiked He
had to choose between these. however or a
possible crash in the money market In
the prosperous conditions of the country in
the last few years the treasury has been
well supplied with money and was able TO
help the market by deposits with national
banks and In other mays tided things over
many tight places Secretary Shaw be-
lieveS that all this sort of thing could be
avoided by an elastic currency. He be-
lieves that the extremes of exceedingly
easy money and dear money should be rem
dered impossible In several ways, and in
the past he has advocated giving authority
TO national banks to issue additional gov
eminent guarantee circulation equal in
amount to SO per cent of the bond secured
currency maintained by them. His idea Is
that by placing a tax of or 6 per cent
upon this additional circulation the gov
eminent would run no risk In guaranteeing
redemption, as the currency would not
spring into existence until money rates in
New York and elsewhere exceeded per
cent and IL would be retired when rates
became normal. BY such plan 10 per
cent money would be impossible.
In his coming report he will elaborate
upon this idea and also will put forward
some new ideas.