The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1907-11-15
SHAW TALKS ABOUT
MONEY TROUBLE
WEAKNESS OF THE AMERICAN
SYSTEM is THAT CURRENCY
is NOT ELASTIC.
He Suggests Remedy-Would Per-
nit National Banks to Issue Addi-
tionaI Circulation Without Col
lateral When 1t Is Needed.

New Haven, Conn, Nov. 12.-For-
mer Secretary of the Treasury Shaw
addressed the chamber of commerce
Monday night on the financial situa-
ton.
In the judgment of Mr.. Shaw, the
only weakness of the American none
tary system is that the currency is
nonelastic, that it's volume does not
respond to changing seasons and the
varying needs of trade.
There were indications as early as
August" said Mr.. Shaw, that people
had been listening and in response
were Withdrawing money and locking
it up. 1t was the incipient symptom
of a disease which always first shows
itself in this way. In addition, in
creased commercial activity incident
to the return of business men from
summer vacations, a ripening crop,
and the inlaying of stocks of mer-
chandise, caused an unprecedented
demand for money. Still, the aggre-
gate volume remained fixed, inflex-
ible and nonelastic.
Mr.. Shaw's Remedy.
Had the national banks been en-
powered to issue additional circulation
equal to so per cent of their capital
without "a deposit to secure it's re-
demption, but subject to tax of five
per cent, an aggregate increase OF
00,00O,000 would have been possible
and $200,000,000 would very likely
have been issued. The people would
have carried to their safe deposit
vaults or taken home for conceal
ment a national bank note as readily
as a gold certificate, and they would
have been just as safe.
1.-THE redemption of the existing ma
tional bank note is now guaranteed by
deposit of government bonds which
are direct obligations of the govern
ment. / grant that it is illogical for
the government to guarantee bank
notes, but the people have become so
accustomed to money bearing in one
form or another the obligation of the
government, it would be willing to
concede the guarantee to this sug-
gested additional issuance of bank
notes."
New Orleans Exchange Closed.
New Orleans, Nov. 1.-THE Louisi-
ana stock exchange decided to remain
closed for the week This was at the
request of the clearing house.
Bank In Ventura, CAL, Closes.
Ventura, CAL, Nov 12.-The bank of
William Collins & Sons, of this city,
closed its doors Monday and state
ment was given out that the bank is
taking advantage of the day-to-day
holiday. The bank has long been con-
sidered one of the most substantial
institutions of this county. 1t has de-
posits of over 100000 from the farm
ers and business men of this section,
but it's assets far exceed this amount
Haul 100000 Through Streets.
Chicago, Nov. 12.-Three million
dollars in gold was carried through
the streets of Chicago Monday in
four express wagons, attracting much
more attention than would ordinarily
be displayed at the sight of the so po-
licemen who guarded the money
marching down the street. The gold
was transferred from the Chicago sub.
treasury to the First National bank
1t constitutes the largest single draft
for gold ever made upon the sub
treasury, according to Cashier Rus
sell, although larger sums of gold
have been transported through the
streets at various times when a bank
moved from one building to another.