Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1907-01-10

statute had provided for the exchange
of gold for all forms of United States
money no gold would have been hoard.
ed and revenues would have been paid
largely in gold.
Bank Should Pay Tax.
"The most common objection to any
additional currency legislation is that
the notes issued would be unsafe
This objection might be good if there
were on other security proposed than
the ordinary liability Of the bank of
issue. Fortunately, however, no one
proposes to stop there. Every friend
of elastic currency proposes that the
bank of issue shall pay into a redemp-
ton fund a certain tax upon the
amount of circulation maintained.
The lowest tax suggested by any one
lis vastly more than would be required
to cover any possible loss.
Whether or not the government
guarantees the notes." continued Sc
cretary Shaw, Gust SO long as it col.
lects from banks several fold enough
to make the government safe, or
whether the notes shall be first lien
upon assets when there is fund
created ample to cover all loss with
out encroachlng upon assets, is GER
tainly irnmaferial. The one plan may
he more srirnt'fic than the other but
both plaus s.c practical, and about
all we 2ecd Just now is u practical,
easily worked system Of elastic cur
rc:gy. Elasticity and sarety are es-
szntia!:s details are not essential pro-
vided our present system be not dis
ttADe1 and the country be protected
against imitation.
Need for Contraction.
"Thera is Just as much need for
contraction when money is not legi-
tinlately needed as there is for expan-
sion when more moLess il required.
And unless contraction can be induced,
expansion is Impossible. The farmer
requires fewer grain sacks during the
SUMMER months than ct harvest time,
hut unless he has some system for
retiring these he does not actually
need during the growing season he
will fiud them half filed with chaff
in the autumn or otherwise unprof-
tably employed. Less money is also
needed but unless there is some sys-
tenn OF contracting the currency when
not actually required in legitimate
business, it, too, will be. found occu-
pied with chaff in the autumn"
Essentials of Elasticity.
What are the essential of an elias
tic currency?" inquired Secretary
Shaw, and then he preceded to ans
wer his own question.
First, it's prompt retirement when
not needed; second, it's equally prompt
reissuance when needed. And unless
you have the one you cannot have the
other. The one is an essential pro-
lection against imitation. The other
is the best safeguard against string
ency. Currency sufficient to do the
business of the country is not inf1a-
ton. A redundant currency, be that
much or little, is always dangerous.
Unemployed freight cars are not an aid
but an obstruction to commerce. In
practice they are retired from circu-
lation when ont in active USE I'm
employed money is not only an OBJ
struction to commerce but an induce
ment to speculation. What we want
is a sidetrack for unemployed money.
"It is gratifying to know that both
houses of congress are giving this
important question very careful atten.
ton and that prospect for relief is
not far in the future"
Frank ]. StillmaE.