The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1906-01-09

Imminent. but Believes it Will Come.
Unless the Situation is Remedicd.
He Fayors a Currency Based or
Commercial Paper-Thinks Shaw's
Plan Would Aid Speculation Rather
Than Legitimate Business-Sharll
Break in Prices ON Stock Exchange.
New York, January 4.-Unless there
is currency reform, a panic, beside
which former panicS will seem insig-
nificant, vas predicted by Jacob Schiff,
head of the banking firm of Kuhn,
Loeb & Company, in d speech before
the New York chamber of commerce
today. Mr.. Schiff said he did not re-
gard such a panic imminent, but be
lieved it will come unless something is
done to remedy the lack of elasticity
Of the present currency system. He
declared that he did not favor the plan
proposed by Secretary OF the Treasury
Shaw for relief of the situation, it be-
ing his opinion, that the secretary's
plan would aid speculation rather than
legitimate business. Mr.. Schiff favor
ed Il currency based on commercial pa
per us more helpful to the general bus
mess interests of the county.
The speech created Il sensation in
financial circles and caused a sharp
break i'll prices on the stock exchange.
The meeting of the chamber was at
tended by a large number of business
men and fnanciers and a resolution ON
the subject offered by Mr.. Schiff was
unanimously adopted. <he resolution
~inStructS the committee on finance
and currency to submit Il report on the
recommendation of the secretary of the
treasury. When the tenor of Mr..
SChiff'S remarks became known in
Wall street the effect was shown al
most Instantly in the stock market.
There was pressure to sell and support
to prices seemed entirely lacking result
ing i'll an uninterrupted decline up to
the close which was active and weak.
The shares most vulnerable were thOS
which have been the leaders in the re-
cent bulls speculation and especially
the metal stocks. Anaconda fell to
80 ID points below last night and raj
lied one, closing 81 - lower. Other
losses were Amalgamated Copper 3 3-S;
st. Pau l Ia; Chicago and North
western 2: Delaware and Hudson 4;
General Electric 2 Is; Great Northern
preferred 3: Louisville and Nashville
/ II; Northern Pacific 2; Peoples Gas
l II; Reading 2 and Virginia Carolina
Chemical . Is. These declines oc-
Cured in spite of the fact hat call
money, while still firm, was easier
than for some days, loans having been
made as low as s per eel After the
close of the market Mr.. Schiff made
this supplementary statement:
My remarks were dictated simply
by the conviction that something must
be lone to correct our inelastic cur
dency system, if we are not to run in
time into great disaster. We are try
ing to play the role of giants while still
in our %swaddling Clothes"
Mr.. Schiff, in his remarks al the
chamber Of commerce said in part:
Il don't like to play the role of Cas-
Sandra, but mark what | say, If this
condition of affairs is nOt changed, and
changed soon, we will get a panic in
this country compared with which the
three which have preceded it would
only be child'S play. There is no dis
aSter soon upon us; don't musunder-
stand: but this is the time to prepare
for it. We have Il long session of on
greSS before us; and if the President
of the United States will only put part
of the energy which he has so admir-
ably put into the attempt to regulate
railroad rates, into an attempt to cure
the condition of our circulating medi-
um, the material interests of this
cOuntry-and after all it is the material
interests that underlie everything-the
material interests of this country can
be safeguarded for a very long time to
come.
Il have asked that this recOmmen-
dation referring to Secretary Shaw's
plan, be referred to the committee on
finance and currency. I don't want it
to be understood that | am in favor of
the recommendation. | think it is a
very poor recommendation. | believe
if our banks are permitted to issue
fifty per cent of their present circula-
~tion without security, that it will 60
just where it ought not to go-it will
60 into speculation. But we ought to
have an elasticity of circulating
medium. If we are to give the banks
discretion to increase at certain times
the circulating medium, it ought to be
made certain that it be only lone fol-
the legitimate needs of commerce, in
dustry and trade.
be made certain that it be only done
for the legitimate needs of commerce
industry and trade
"If any Increase don't believe fit,
per cent is needed. which would be
two hundred and fifty millions-if any
increase in circulation was secured
solely by legitimate commercial paper
commercial paper based upon posi-.
bly, a deposit with certain clearing
houses in the country-if circulation ii
secured by legitimate commercial pa.