New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-02-02
SHAW PLAN A HAZARD"
REPORT FOR MR. SCHIFF.
Chamber of Commerce Committee
Saus Currency Is Large Enough.

The committee on finance and currency, 10
which was referred the resolution oftered
month ago by Jacob II. Schif. calling Tor
report of Secretary's Shaw's plans to permit
national banks issue volume OF addltlonal
government guaranteed currency, made It's re-
port 10 the Chamber of Commerce at its monthly
meeting yesterday. Among the most important
statements in the report that the present
circulation is large as. il not greater than
the country needs; facility of issue and fro
quent and enforced redemption of hank notes
can alone secure the element of elasticity 50
much needed: banks should be permitted to
issue and return their currency at wilr': and the
Secretary of the Treasury should be empow-
cred to deposit, in his discretion. public funds
arising alike from internal revenue and custom
dues in the national banks against such Sc
curity the law may authorize. except the gold
reserve held for tse redemption of legal tender
notes and such working balances as he shall
consider advisable TO maintain"
II also urged that not less than per cent be
exacted on all such deposits. IAN emergency
currency II said, for its effective opera ton
requires that IT shall he secured in the same
manner and assume exactly the same form IS
the bank currency already in circulation" The
committee reported that Secretary Shaw's plan
would prove = hazardous experiment" It said
further. that the committee does not deem such
a course prudent or safe or advisable
MI schtr said he was pleased with the ex-
haustive report Of the committee He offered
resolution that the report be received and placed
on file and that the president of the chamber
De empowered 10 appoint committee of five
to confer with other men from financial centres
with the Idea Of considering the currency oues
ton and making report TO Secretary Shaw and
TO President Roosevelt. The resolution 1ras
adopted.
M
Nothing but gold or notes based on gold and
bank notes issued In accordance with scienttfc
economic principles TO serve q 3 the vehicles ~
commerce. and trade have any legitimate 1usti-
Hcadon 10 circulate as money. But fear IL Is
useless 10 hope that our monetary system can
oetole me country has gone through further
SSulLerIns ana gained further costly experience
pecOIls reconstructed IN accordance with this
SIMPLE but nevertheless correct, proposition 1t
pe1ng' however, condition and not a theory
y" men confronts us, it behooves us to consider
what can be done to protect ourselves "a far es
thls Is practicable against the Ills and short
comlngs OF situation which for the present we
should be done
Ipe recommendation made in the report Of the
committee, that to assure more elasticity IN the
ing medium banks should be permitted 70
surrender their circulation at will is nor likely
10 greatly aid In solution of the problem before
US such surrender would not be determined bx
the condition Of commerce and trade nor even
OF the money market, but rather by the pricA Of
government bonds and the convenience and ad-
national bank circulation is to great extent de-
ternlned by SIMILAR considerations
extraordinary conditions will arise as has
oIleh Deen and will again be the case when
even our large volume of currency becomes tenn
polar1ly insufficient and 4 situation is created
winch when aggravated by distrust and loss OF
commence. brings forth disaster. such as we are
unfortunately not unacquainted with, and under
winch the country has repeatedly been made 10
surfer severely for extended periods Even with
our Undesirable fiscal system. il should be nos
sIpie 70 devise methods through the adoption CT
| Whlch extreme commissions and suffering suo;
| as We have periodically experienced can become
az least IN part sreviated, and against 3 recur-
! renee of which should seek to protect nur-
selves, insteat Of being satisfied in these times
| or prosperity, with the thought Of After us
! the deluge" 49,
prohibit the coming of Chinese laborers into the
| United States. and urging its speedy enactment
! another resolution expressing approval Of the
| sentiments Of President Roosevelt regarding the
/ preservation OF Niagara Falls was adopted
/ CHARLES . Smith offered q resolution that the
/ taxation of mortgages is against sound public
| poncy, put as compromise resolution approy-
ing the imposition of a recording tax of one-haIf
| OF l per cent was adopted. ]. Pierpont Morgan
/ was elected vice-presdeut. 10 fill the vacancy
! caused by the death OF Marshall Field
Several Chinese dignitaries composing the
| commission sent here TO investigate American
/ commercial affairs, attended the meeting Tai
Hung-Cht addressed the chamber in Chinese
! which vas translated by an interpreter Sir
/ Chentung hang-Cheng, Envoy Extraordinary
! and Minister Plenipotentiary to the United
/ States. also spoke.