Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1906-01-06
With Schif That Money
Panic Is Imminent
Unless Remedy to Existing Cur
rency System is Renovated.
Wants Extra Currency Secured By CONNER.
ciaI Paper in the Banks.

New YORK, Jan. J.-Lyln3n j. Gage,
former secretary of the treasury said
today that he agreed with Jacob II.
Schff i'll the opinion that Il great pam
c is inevitable unless steps are TAX
ca to remedy the inclasticity of the
existing currency system. Il agree pos
itivcly with Mr.. Schiff,' said Mr.. Gage,
that the monetary conditions which
have existed i'll this county during the
last GO days are disgraceful to us as Il
nation and | further agree with him
that a stunning panic is but a matter
of time unless something is done. The
more promptly and cffcctually this is
done TIE better for the United States.
From Nh Schiffs attitude l infer
that he thinks this panic may be pre-
cintatee very shortly. I do not exactly
agree with that conclusion. In my opin-
ion there is no immediate danger, but
the danger itself is apparent and if the
country sits passive under existing con-
ditions, the country will suffer. l do
not understand how any careful and
thoughtful tinancicr can fail to real
i.:e the peril
AIR. Gage said he favored Secretary
Shavvs, plan for reform and thought
that with certain notifications they
would be successful.
Mr.. Cages attention WAS called to
tn statement by Mr.. Schin that tho
reform of currency conditions is Il more
important matter for the President to
take up than railroad rates. The for
! mcr secretary then said:
Il would not undertake to compare
the relative importance of rate rcgula-
ton With currency regulations at this
time, but | will say. and say as en-
phatically rs possible, that I believe
the work of securing proper legislation
to relieve the present circulation condi-
tions is d high public duty of the Pres
ioent-a very high public duty
Frank a. Nandt rlin. vice president
OF the National City Bank, said today
hc believed Mr.. Schif's speech had no
application to the Immediate situation.
"Hnd Mr. Schiff thought" said Mr..
Nar'tcrlip. that thcre WAS any present
d;ngrI hc certainly would not have re-
garai.I this as an appropriate tim" to
cali public attention to that danger. Hc
j. undoubtedly right in saying that
sometime our illogical currency system
will cause trouble. II has caused
trouhl" in the last six weeks. but the IN
dicationA are that the trouble is about
over
A. i:artnn Hepburn, president Of the
Chase National Iauk ana former
comptroller Of the currency. said that
he did not regard Mr.. Schff's plan as
practicable. Tie said:
"Mr Shaw's plan to make the cur
renee more elastic is excellent. In this
city. for instance. this week the Ma
tional banks, with Il combined capital
of S1oi 900 COO. have a circulation al
So. GOO 600. Under the Shaw plan they
could increase their circulation by
nearly S., ,oc0o0n. The ability to expand
III" circulation by 2J.0o0000 in this
city would always be enough to keep
Gown abnormal money rates ana would
be- perfectly safe, but the Schiff plan
would be- neither safe nor rracticablc.'
When Jacob IT, SrhiIr was Informed
this afternoon that his plan had been
criticised us iinpr;,cticahlc he said that
rcII.a;s To lld not made himself thor
ou<,lly understood.
lie said he had no idea Of trying to
initiate IT," currency by issuing paper
money against tho commercial paper
already i'll the banks. but his idea was
merely To make more secure the plan
already adI ocatcd nv Sec. Shaw.
Mr.. Sli"w's plan. 10 said, was a pro-
poSal to ut each national bank issue
- pcr cent more currency than it now
| issued without any security whatever.
Mr.. Schitf said tie merely wished +"
have thlt extra - per cent. of currency
secured Ivy the commercial paper in the
banks.
| Mr.. SchiG reiterated that unless some
sound scheme II stretching the cur
rcncy IN times Of ncCd were soon
found by tie national Eovcrhnr ut. the
! next panic would be n disaster wors"
than tho United States ever before cx-
! f,crieECed