The Detroit times., 1908-02-11
EX-SEC'Y SHAW
SPEAKS IN
5 BAY CITY
ADDRESSES THE MCKINLEY CLUB
eANouETERs-pAviDsoN. OF
WISCONSIN. LOUD AND FORD.
NEY ALSO MAKE SPEECHES.

BAY CITY, Mich. Feb. n.-Leslle
NJ Shaw, former secretary . or the
treasury, spoke before crowd or 300
Bay county voters at the third annual
| banquet OF the Mckinley club, last
evening. Other speakers who served
10 aid the Republican campaign IN
the Eighth and Tenth districts, we're
Congressman j. IL. Davidson, OF WIS
consln; Congressman George A. Loud,
OF Au Sable, and Joseph w Fordney.
OF Saginaw. Carman n. Smith, pres
| ident Of the club. was postmaster.
/ Congressman Fordney was the first
speaker, and was followed By Con-
gresham James III. Davidson, OF Wis
consin, who spoke on Our National
Waterways"
CONGRESSMAN Davidson's reference
70 President Roosevelt in his Grafton
gave the first touch OF political en-
thusiasm to the banquet. His remarks
were loudly cheered.
Congressman Loud was also en-
Enthusiastically greeted. He took up
most OF his time In telling stories on
his fellow politicians about the speak
ers" table, and introduced ex-Congress-
man tom" Kyle, OF Ohio, who varied
Tue pIOBfa ln W bin6ih6 ac hoau "
Dundee" He set the room In an up
roar at the outset by predicting who
would be next president. I'VE have
furnished presidents so often that II
has become a habit with Us In Ohio.
he said, and II there was anyone In
the crowd who was not for Taft, he
could not be detected from the plat
form In the cheering crowd.
Ex-Secretary of the Treasury Leslie
NJ shaw closed the program with
brilliant address on Commerce and
currency"
The gist OF Secretary Shaw's speech
was the advocacy OF government
guarantee. as the keynote OF plan
for the issuance of supplemental cur
rency.
Secretary Shaw said. in part:
Great things have been accomplished
in recent years In the way OF restrain
ing commercial aggression. do not
the benefits resulting from the vigorous
| enforcement Of the law which has
Characterised the present national ad-
ministration. the majesty of the law
has been indicated. and In most whole
| sale fashion.
Until recently every shipper sought
cis rates a casntins rssstes wss ws
nigh universal practice There were
| few, IL any, common carriers engaged
In Interstate commerce that did not
/ violate the express provision OF the law
forbidding these things. and fewer
wholesale shippers who were not re-
| cipients OF special favors. and. there
fore. equally liable to criminal prose-
| cution.
| / doubt IL there are now many ship
| pers who would openly accept rebates.
BATE eouid b n oS,ained nor So os be-
lieve the secret special favor Is now
very often solicited. To such an ex-
that no Intentional vioiator OF the law
| need longer expect TO go unpublished.
| and 10 Theodore Roosevelt more than
to any other man must be given credit
| for this arousement.
| With few exceptions. the secular
press and the religious press have We'd
with magazine writer's. ChautauqLa
| lecturers and ambitious politicians in
iiscrediting everything American. and
| In holding up to public execration
American business men. American bus
| Germs. factories. banks and Transports
| tion companies Unfortunately. This.
repeat Is exactly what might have
been expected i l. part Of It., the svo-
condition 50 a cause and every cause
produces its effect which In turn be-
| comes a cause. Thus we evolve. What
Is the effect Of that which I have de-
| scribcd7 We have lost confidence In
ourselves. and the world has taken us
at precisely our own measurements
All our great commercial competitors
have large central banks we have cx-
| perilnented with institutions OF this
kind. but thus far they have failed to
satisfy the demands of the people.
Wide scope of Central Dank.
I wonder 81 anyone has considered
the amount OF capital that would be
necessary 10 enable one large central
bank 20 supply the extraordinary needs
| of twenty thousand, commercial banks,
or the extraordinary demands of COM
msrce In forty-six states. A central
bank TO be effective would require
branches in every important business
| center II these branches were TO en-
gage IN ordinary commercial banking.
existing institutions would OF necessity
commercial banking, they would have
little business to DO during the major
| portion of the year. and would md IL
difficult 90 pay expenses. not to men
The Canadian plan has many advo-
| Gates. but u will not work advantage
ousiy as an adjunct TO our present sys-
| failure but for the branch bank fea-
4 ture and II would also be a failure IL
there were any considerable number
| OF commercial institutions In the do
minion other than the 80 or 40 banks
Of issue and their branches. In order
to have the plan effective. II must be
adopted in it, entirety. and not az an
Government Guarantee.
The plan TO which my mind presents
| the fewest objections In to allow our
national banks to issue limited vol
| ume OF supplemental currency. subject
TO tax OFFS per cent or per cent dur
| ing the period OF its maintenance. I
deem it important that the supple
mental currency shall be identical In
\ circulation; otherwise it's presence
would alarm. and do more harm than
| good. I deem IL important, also. that
| Its ultimate redemption In gold be
siiss that thi. is Illogical. but the
American people have been schooled 10
believe In government guaranteed
money. and any departure therefrom
would meet With very f snssard dis tss
II wise TO supersede the statement on
the present bank note. This note il
secured by United States bonds with
BY the government with this chang
the supplemental currency TO be issued
by the national banks can Re identical
with that which Is secured by a deposit
| OF bonds So generally, so well-nigh
universally solvent are our banking in
situations that the government would
be taking slight risk to guarantee the
ultimate redemption OF all this supple
| mental currency and the proposed tax
would many fold cover the risk
| II the banks were permitted to issue
i 10 the extent OF an average OF so pei
cent OF the capital. graduated accord
towns where the banks are located
the aggregate volume would be api
Droximateiy 800. 100000. The grea,
champion Of free silver Is now recon
/ guarantee ali national bank deposits
| aggregatfng over $4,000. 600, 600. and
this without compensation or limitation
or restriction or any KIND Or nature