The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-12-12

msnt have either 70 be covered into the Treas
ury or they may be deposit cd in part with the
national banks at the instance Of the Score
tary Of the Treasury. This immense dis
crctionary power has been exercised by sue
cessive Secretaries with varying prudence
and abilit y-and | should i'd, in the forty
years OF my own business experience, no
Secretary Of the Treasury has shown in this
respect more common sense and foresight
than the present occupant OF this high once.
But IL cannot be expeCt ed that the Judgment
of a single mind can be infallible. and placing.
as il the case. into the hands OF one man the
power to be the arbiter Of the Material weifsre
Of the ent ire country. this, with the oest ln-
~tentions. through the least error OF Judgment
on the part Of the Secretary OF the treasury
may become jeopardized TO a degree the
exte nt OF which we shall never be in a posi-
ton to ascertain.
Nothing is so greatly to be deprecated as
the ever recurring withdrawal OF a large
part Of the country's capital from it's useful
purposes into the United States Treasury
and the so-called assistance to the money
market by the Secretary Of the Treasury.
which this necessitates. The overnight an
nouncements of relief the Secretary Of the
Treasury is in the habit Of making are neither
good finance nor fruitful Of good results to
the mat Crial int erests of the country; but
these sudden announcements from Washing
ton. to which we have become accustomed,
are only the consequence Of most undesirable,
almost barbarous methods which existing
laws have called forth. The sole but impera-
tive remedy for this Ia the enactment Of legis-
49, ""hS.h acar oil ara no,hino bu,
-, 20 49, wnrLin, oani,aI AZ tba countr
snau a.. s,., "a ,hsv ara collected. be de-
post ed with the national banks in proper
proportion to their capital. upon such actual
security as may be acceptable to the Secre-
-, /. vni,oru ra,s ~ int eros, likewise to be
AZ. a,ninsd hv the Secretary
CNCERTAiNrf AL"Afs
You know not to-day what, In a monetary
sense, the morrow may bring: you base the
initial arrangements for your business anairs
upon ordinary financial conditions. and be-
fore YOU get through you are compelled to
pay exorbitant rates for the accommoda-
tiln YOU reuu ire, II you can obtain il at all.
Instead Of possessing a circulating Medium
which can adapt itself 10 the business Of the
country. the business Of the country has. as
il is, to adapt itself TO a clumsy currency,
and the consequence are nauGht but loss.
setbacks-if not panic and revulsion.
Let me, however, not be IN isunderstood.
Elasticity must be the prime quality of any
credit currency, more so even in its contract
ing than in its expansive possloilties' Inc
seed Tor financial trouble IL nov ialu III 'Nhes
like the present when money IL scdrce anu
nnanclal accommodation uIlncut " o'ain
financial dlHcultles are pIeu wren H'Ohey
is superaoundant, When WIN existing Jaws
ana prevaiilhg NERVOUS 'he pdnNs " unapLe
10 wHhnraW 'heH cIcu'a'lhS no'es, uV"s'
they may not nave the 'easl use :, lnen,
wniIe al the same time NoNetntheh' uePoeCs
are retained oy the oanks' VINO nave no soou
motive 10 return 'hese' > my 'V9'
II Is in such times OF chokeu money suppnes
that unlendaoie luhus become enpioyeu
Tor he promotion Oh every hinu vi
enterprise from "hlch " II IouNu i"poTsIpie
10 WITHDRAW theh wheh 'hey oeco'he ueeuu
TOT the legNiha'e requirement."
ana trade
Against these eNhS "urrenVS relo'" a"u
REFORM OF treasury me'hoas afe y P.o.'
MS. and because OF TINS our hrs, raIe III CIea'-
ing a credit currency shouIu pe 10 Hhahe
u thoroughly Responsive ho' oniS " ~
uuireinents OF commerce. anu 'luue n%
equally responsive 10 any 'e@Sa''o" U 9""
requirement
\ circulating meuiu" IhCreaeou oVEo"u
legitimate use VIII De certain 10 soohet VI
later drive OUT goo Vne re'enron Vi VIII"
should De suaroeu oy al lesn'na'e ie''
for no credt currency can remain Soulu 'n'e'
II pears Vhe pIopeI p,VpNn
money neeued LOT us ultimate reoe"p''0n'
Speaking Of reforms, Mr.. Schiff said:
progressive income tax, even il il
needs a constitutional amendment TO make
its imposition possible: a tarin, enacted by
the friends of a tariT. honestly protecting
industries needing protection, without re-
sulting in the building up OF large fortunes
for the few at the cost of the many; an i'm
migration law keeping the country wide
omen to those who, driven out of their native
country by unbearsble conditions. come to