Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1906-01-05
CAUSES A SHARP
BREAKON CHANGE
Head of Firm of Kuhn, Loeb and Company
Wants Elastic Currency.
SAYS PRESIDENT WASTES
HIS TIME ON RAILROADS

New York, Jan. 4.-Unless there is
a currency reform a panic beside
which former panics will seem insig-
nificant was predicted by Jacob H.
Schiff, head of the banking firm of
Kuhn, Loeb & Co, in speech before
the New York Chamber of Commerce
today. Mr.. Schiff said he did not re-
gard such panic as imminent, but
believed it will come unless something
is done to remedy the lack of elias
ticity of the currency system. He de-
clared that he did not favor the plan
proposed by Secretary of the Treas
ury Shaw for the relief of the situ-
alton, it being his opinion that the
secretary's plan would aid speculation
rather than legitimate business. Mr.
Schiff favored a currency based on
commercial paper as more helpful to
the general business interests of the
country.
The speech created a sensation in
financial circles and caused sharp
break in prices on the stock exchange.
The meeting of the chamber was at
tended by a large number of business
men and financiers and a resolution on
the subject offered by Mr.. Sehlff was
unanimously adoped. This resolu-
ton was as follows:
Resolved That it be referred to
the committee on finance and curren-
cy (of the chamber of commerce) TO
consider the recommendation of the
secretary of the treasury made in his
report to congress December 6, 1905,
to permit national banks to issue d
volume of additional government
guaranteed currency equal in amount
to so per cent of the bond secured
currency maintained by them, but sub
ject to tax of or 6 per cent until
redeemed.
BE it further resolved, That the
committee on finance and currency
submit a report at the next monthly
meeting of the chamber upon the
aforementioned recommendation Of
the secretary of the treasury, togeth-
er with any other measures which the
committe may be able to suggest as
efficient and practicable for the at
tainment of the purpose for which
the recommendation of the secretary
of the treasury has been submitted
to congress"
Almost Panic Results.
When the tenor of Mr.. Schiff's re-.
marks became known in Wall street
their effect was almost instahuy DS-
ticed in the stock market. There Wls
a pressure to sell and support to prices
seemed entirely lacking, resulting in
an uninterrupted decline up to the
close, which was active and weak. The
shares most vulnerable were those
which have been the leaders in the re-
cent bull speculation, especially the
metal stocks. Anaconda fell to 35 ls
points below last night and rallied l.,
closing SAN lower. Other losses were:
Amalgamated Copper 33s, st. Paul
Paul / ", Chicago & Northwestern 8,
Delaware and Hudson 4, General
Electric 2h, Great Northern preferr-
ed 3, Louisville and Nashville l q /,
Northern Pacific A. Peoples Gas 1 Il
Reading 2 and Virginia Carolina
Chemical 2H.
These declines occurred in spite of
the fact that call money, while still
firm. was easier than for some days,
loans having been made as low as s
per cent. After the close of the mar
ket Mr.. Schiff made this supplement
tary statement
my remarks were dictated simply
by the conviction that something must
be done to correct our inelastic cur
rency system, If we are not to run in
time into great disaster If the presi-
dent could be made to see that this is
question of vastly more Importance
to the material interests of the country
than that of railroad legislation, to
which he has devoted himself with
such admirable energy. congress
would soon set at work to remedy our
circulation evil in a manner which
would safeguard our prosperity
Call Conditions n Disgrace.
In the course of his remarks at the
chamber of commerce Mr.. Schiff said !:
"We have witnessed during the past
sixty days conditions in the New York
money market which are nothing less
than a disgrace to any civilized eoun-
try. There must be cause for such
conditions. 1t cannot be the condl-
tlon of the country itself, for where
ever you look there is prosperity
prosperity as we never had It before.
II cannot be that the speculation