The daily silver state. [volume] (Winnemucca, Nev.) 1903-1907, 1906-01-24
DO WE NEED MORE MONEY?

In a speech before the New YORK CnaIn-
Der of Commerce week before last Jacob
H. Schiff predicted that unless something
tenn n the direction of greater elasticity
we should lave a panic hat would make
all others seem like child's play. He de-
clared that conditions which lave existed
with call loan rates ranging from ten to
1o5 per cent. were a disgrace. The rem-
edy which Mr.. Schiff suggested was an
asset circulation with ar emergency tax
to insure their retirement when the usual
demand had ceased.
Newspaper comment represents all
shades of opinion and currency theorIz-
ing. If Mr.. Schiff's prediction should be
verified. says the Philadelphia RECORD.
the primary cause of disaster would not
be found in an inelastic. superinuated sys-
tenn of currency, bad as it is in the esti-
nation of most political economists. 1t
would be found rather in a s~uperapund-
ance of currency recklessly advanced by
New York banks to feed every species
OF speculative syndicate. When the game
is overplayed the anxious but unwarrant,
able cry is the great scarcity of money
A similar opinion is expressed by the
P%ittsburg Press: when plungers dance.
the fiddler must be paid. 1t is very doubt.
full if Mr.. Schiff or any one else can de-
wise a fnacial system which will pre-
vent panics-in other words, overreachins.
The ideal currency system is that in which
there is as little as possible paper, rather
than as much as possible. Great Britain
gets along on a great deal smaller amount
of note issues than we do. When money
in London gets tight, England expects
gold to flow there from other countries.
1t is the real money, and it always tends
to seek the market in which paper money
issues have been kept down to the min
imum."
A different view is taken by the Buffalo
Commercial. which says: THE Schiff
plan would meet the general and legiti-
mate demands of changing conditions.
AS for promoting speculation, that has
not been a conspicuous result in Canada
and other countries, where paper cur
rency, based on bank assets and a safety
fund, Is used" The Savannah News
thinks that whether the money is de-
mande for speculative purposes or not
the danger is none the less great.
Not more money. but better bankers is
the remedy suggested by the Chicago
News: While some means of giving
elasticity to the currency is highly desir-
able. nothing that federal enactments
can do will suffice to offset lack of
good sense and financial integrity on the
part of those who control the great bank
ing institutions of the country. 1t is
their duty to discourage the speculative
fevers which rage periodically. II they
would perform this duty well at all times
tho country would have less need for an
elastic currency" Banking credits have
been given about all the latitude desir- |
able in the opinion Of the Detroit News. !
If there is a demand for additional de-
curity. one would hardly look to securi-
ties which are subject to such violent
fluctuations that they are the favorite
medium of speculation. State and munic-
pal bonds, selected with proper dis
elimination, seem practically as secure
as the credits OF the federal government;
they might be utilized as a basis for cur
rency imitation"
The st. Paul Pioneer Press thus outlines
tho kind OF currency which it thinks
would meet all legitimate requirements:
THE truth is that currency based on the
actual business passing through the banks
is the only currency yet devised that re-
spends automatically and certainly to the
emand 1t does so because 1t is busi-
ness that calls new currency into ex-
istence and it is the falling off in busi-
ness that sends 1t back to the banks for
cancellation. There are. to be sure, a
good man. who admit the desirability of
credit or asset currency but are sceptical
Z its working in practice. This. however.
a question OF administrative detail,
ansh has been amply provided for in