Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1906-01-05
In Sight Unless There is
Currency Reform.
The Startling Announcement
Made by New York Banker.
Banker Schiff Believes Sec. Shaw's Remedy
Inadequate to Present Needs.

New York. Jan. i.-I'nless there is
currency reform, q panic, beside which
former panics will seem as mere child's
play. was predicted ny Jacob H. Schiff
head OF the banking 1irni of Kuhn. Loeb
* Co. in Il remarkable speech before
the New York Chamber of Commerce
today. Mr.. Schiff said he did not re-
gard such a panic is imminent now
but believed it will come unless some
thing is done TO remedy the lack of
elasticity of the present currency sys-
TEN. He declared that he did not favor
the plans proposed by Secretary of the
Treasury Shaw for the relief of the
situation it being his opinion that the
sccrctary's plan would aid speculation
rather than legitimate business. Mr.
Schin favored a currency based on
commercial papcr as more helpful to
the general business interests Of the
country.
The speech created = sensation in fl
han"Ial circles and caused u sharp
break in prices on the Stock Exchange.
The meeting Of the chamber was at
tended by a large number Of business
men and tinancicrs and the address was
generally endorsed by those present. a
resolution on the subject, offered by Mr..
Schiff. was unanimously adopted. This
resolution was as follows:
'K2Solved. that it be referred to the
committee on finance and currency (0f
the Chamber OF COmnercc) to cOnSid-
cr the Recommendation of the secretary
oi the treasury made in his report to
Congress, dated Dec. 6. 1905. to per-
nit national banks to issue u volume of
! additional government guaranteed cur
; rcnCy. equal in amount to 30 per cent.
| Of The bond secured currency MAIN
! tanned by them but subject to Il tax Of
. or per cent. until redeemed.
| BE it further resolved, that the com :
mittce on finance and currency submit
report ut the reXt monthly meeting
. OF the chamber upon the aiOre-mcn-
1 toned recommendation of the secretary
I OF tn" treasury. together with any 9TH
or different measures which the COM
mittce NAY be able to suggest as elf
, Gent and practicable for the attain
mcnt Of the purpose for which the
recommendation Of the secretary Of the
treasury las been submitted to Con-
Srcss."
! Wh"n the tenor of Mr.. Schiff'e re-
marks became known III Wall street tho
effect was shown almost INSTANTANEOUS
ly in the stock market. There Was prs
sur to sell ana support to prices
seemed entirely lacking. resulting in an
uninterrupted decline M to the close
which was active ana weak. Tho shares
most vulnerable were those which have.
been the leaders in the recent bull
Anaconda fol- to 81. points belrw last
! night and rallied ]. closing "a: lower
| Other losses were: Amalcamatod Cop
/ per, 81: II. Paul, II, Chicago & North
western, .; n"laware & Hudson, 1;
General Electric. 2iS: Great Nnrth"rit
4 IL: Northern Pacific. :; Peoples Gas.
IL; Reading. = ana Virginia Carolina
Chemical. III. These declines occurred
i'll SDitc OF Tho fact that caII money.
while still firm. was easier than for
some days. loans having been made as
low as per cent. After the close of the
market Mr.. Schff made this supple
m"ntary statement:
My remarks We're dictated simply by
Z til" conviction that something must b.,
uonc t" correct our incaStic currency
system if "" arc not to run in time into
great disaster. We are trying to PLAY
the roi" of giants while still in our
swaddIinc clothes
IF tn" President could be made 10
81" that this is 4 question Of vastly
NOR" inheritance to the material inter
, 'StS OF tn" country than that Of rail-
ROAD rate legislation. to which he has
devoted himself with such admirable
CnCrgN. Congress would soon cc. a,
work to remedy our circulation OWL in
I " manner which would safeguard our
| Prosperity"