The Birmingham age-herald., 1906-01-05
WARNING NOTE IS
 SOUNDED BY JACOB SCHIFF
tcontInued from Elrst Paae.l


 else money will seek other countries. 1t will go into enterprises and undertakings out of which it cannot be withdrawn when 1t is needed. Make use of its strength now, don't wait until the time comes when you must yourself seek strength.
 Feared Criticism of Press.
 The secretary answered me and said that he did not wish to withdraw any deposits now for he did not want to have the funds withdrawn when deposits might be needed; and he said he feared the crit icism of the press-which Is always affect ing our public offices. Then what hap pened? He left the larger part of his deposits In the banks until last autumn. Last autumn he needed money and the country needed money, too, and at that time the deposits became very much re- duced. He did not deposit now when prob ably twenty-five or thirty or forty mill lions would have changed the entire state of affairs, for 1t is only the last twenty five or thirty millions that are wanted that determines the high rate. He did not deposit now, not because he did not want ito mix up money matters but he could not spare the money. If be had strength ened himself when money was less strin- gent, and when the banks simply kept the deposits because it did not cost them anything, we would have seen another condition now, for the Secretary of the Treasury would be in a condition to help the money market if I may use that ex- precision; and as much as I am opposed to help by the sub-treasury in the matter, so long as we have such a system, as long as the sub-treasury is the depository of the money-so long the sub-treasury must play the role which the Bank of England plays in the money market of England.
 Must Play Same Role.
 "If money Is very easy in England, the Bank of England goes into the market and borrows from the market. If money is very tight in England. the market goes to the Bank of England to get its money from the Bank of England. Un- fortunately our sub-treasury must play this role; 1t cannot help 1t. I don't like to play the role of Cassandra, but mark what I say, if this condition of affairs is not changed, and changed soon, we will get panic In this country compared with which the three which have pre- ceded it would only be child's play. There Is no disaster soon upon us; don't mis- understand me, but this is the time to prepare for 1t. We have a long session of Congress before us. and If the Presi- dent of the United States will only apply
 
 mirably put into the attempt to regu- late railroad rates, into an attempt to cure the condition of our circulating me- mium the material interests of this coun- try-and after all 1t is the material in terests that underlie every business-the material interests of this country can be safeguarded for very long time to come
 Is Very Poor Recommendation.
 q have asked that this recommen- dation, (referring to Secretary Shaws plan), be referred to the committee on finance and currency. I don't want to be understood that l am in favor of the recommendation. I think it is a very poor recommendation. I believe if our banks are allowed to issue 50 per cent of their present circulation, with out security, that it will go just where 1t ought not to go-it will ko into speeula- ton. The merchant and manufacturer cannot stand a tax of or 6 per cent on additional circulation. bvt speculation can stand it. and the promoter can pay it and will, and it will go just where 1t ought not to go But we ought to have an elasticity to our circulating me- mium. If we are to give the banks discretion to increase at certain times the circulating medium. it ought to be made certain that 1t be only done for