New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-01-05
s7H1Fr SEES BIG PANIC.
,,pcEscURRENCY REFORM
p1,, Secretary ShGp and Suggests
rsot President Take Hand.

CFNt n
'A.D ,~,-,r,erce yesterday gave warning OF d
ssf o. OD.-... -.,.1 manic in such terms as TO
poss'' .ock market to sell off sharply
1ase s-+ however led 90 the belief that
Cooic -. "a no intention to break the mar
@l Sc himself later dtsciainled any snch
ke@ =, the first few minutes after the IN
p~1,,a rsports of his speech reacheo 'he
co. bov=sver. there was a. general decline OF
e. o,s N three points ana the market closeo
exceedingly soII g., oonneot,on
or, schrs prediction was mane IN cO'ii'e'0O-
- o-,s resolutions he introduced oeloIe 'iie
- calling for the adoption OF secretary
rZ,.s recommendation for an emergency CIR
I.,., consisting OF heavily taxed bank notes
ms resolutions folIo"'
-,.,-sh That It be referred TO the coInIn ao
On finance q sn the SECRETARY Of easury nsde
bIs report to Congress dseeo IsoImgna Of aG
% pei enyernnent guaranteed currency. eu4a , III
amount 10 20 per cent OF bn9 sJitect to tax Of
rehot 20 cent until redeemed De II 1ua1leI avs
Resolved Ina reporf at the next monthly meet
30 the chamber upon the atoreIncsiuOneo +oeth
nendstSon INV ~ other different measures which the
1,nmittee may be able to sussesSI +h nlI-nose for
gbicb the recommendation OF the secTeIars s % 'N0
TIsss has been submitted TO congress
,ootine n these resolutions Mr.. Schif
a, +bo. IN the last sixty days conditions hao
-, witnessed In the New-York money market
18th were nothing less than disgrace 10 any
.-i,zed country. It could not De the coIShllioii
=. the country. he said. Tor every "i'oe
% evidence of prosperity. and other countries
"N 80 r-,der snecuIation than the United
c+.tas without the money market being IN such
.5,+ior that rates had varied all the way
,,or, 10 TO 20 per cent
az cay that It is disgrace 70 a civilized com
,ritv" he continued. There must be cause
Co. II and We all know the cause. The cause Is
=. orr insufficient circulating medium. or the IN
-,,47cient elasticity OF circulating medium
w schif then told of conversation he had
nth Secretary Shaw last year. saving:
rent 10 the Secretary OF the Treasury and
said to him: The National banks are gorged with
1rsrsut this condition or else money W1n seek
ether countries Il I'll 60 into en b a mo
,vbsn If is needed. Make yourself strong now. Do
not wait until the time comes when you must make
5 sseretary answered me and said that he did
mt Tsb 10 withdraw any deposits. for he did not
10 a,s NO To- have the funds withdrawn when deposits
might be needed, and he said he feared the crit-
oI u oticers He left the larger part of his de-
POSTS in inc banks until last autumn Last sum,
rnsr he needed money. and the country needed
none too and that time the deposits became
much reduced.
or so0nOO or s40oo0.Oo0 would have changed the
ea state Of a15s for It Is Only n 94e s a5 S
fba hign rate He did not deposit now, not because
cond i snare the money If he had strengthened
himself when money was less stringent and When
va, cost them anything, We would have seen
other condition now For the seoretadS or ne ne
money market
Mr.. schif then made his prediction. He said:
"T don't like to play the role Of Cassandra- but
? -His condition of aePa &c
not changed. and changed soon. We will get
panic in this country compared with which the
three which have preceded it would be. only
chfd's play"
Nj Schif went on TO say that there IS no
disaster facing the country but that this is the
tine 10 prepare for It for there is long session
Of Congress in progress. and, If the President
will turn some Of his energy from railroad re-
hates 10 the circulating medium, the currency
OF the country may be put on q safe and sane
basis
AS soon as the word panic was heard in Wall
Street. however. coming from such q man
Mr. schff, the medicine promptly acted. Luckily
II was near the closing and prices did not go
far Atchison went OF point and half. Brook
lyn Rapid Transit dropped two points. St. Paul
lost one and three-quarters. Louisville and
Nashville lost tVo points. Union Pacific went off
tTo and a quarter. and Steel common a point
The greatest break was in coppers Anal
garnoted Copper closed down 33-8 points for
the day. and Anaconda lost BAH points from
Wednesdays closing. On the basis of Ana
condas par, this represents a net loss of about
o12 points on stock with par value of 100
The strength Of Union Pacific was q feature
On sales Of 100000 shares It lost only three
eighths Of point from Wednesdays closing.
Inc general opinion among bankers-and the
Suee' adopted the same opinion when It got
ume TO take thought that Mr. Schiff had
10 Idea Of precipitatng a crisis in the market,
Dut that ne only intended 70 warn his colleagues
IN Inc Chamber Of Commerce Of the serious con-
Oilion OF the financial system of the country.
ms speech was not prepared in advance, and
me same thing has been said many tines-before
U! oIner bankers and capitalists but ii so hap
pens mat il has not been said in the same spec
iacular way
ar' scnin afterwa-d issued supplementary
s's'ernent, in which h. said
TIM FPeaaEks we're dictated simply by the convfo-
neTs. Sot something must be done 10 correct
ill., e. currency system II are not 70 run IN
ne -oio gIeat disaster We trying to play
fb.+ =. II the President could made 10
- 81 y 2 question Of vastly more Importance
q rs,-oa interests ~ the country than that
-o-eS b31oTSoe regulation, to which he has de-
s~ese -.LseI with such admirable energy. Con-
cue;,o-. O-Iq 1 soon set 10 work 10 remedy cir
'ar Prosperity 100 49, ~
= Edward sinnons, president of the Fourth
N1onaI Bank, SAID that the fact that he sec
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