The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1906-01-05
MUST Be FOUND
AND FOUND soon
FinanCiers Looking for a
Remedy for Cramps
in Currency,
SCHIFF PREDICTS
DIRE DISASTER
Head of Big Banking House En-
phasizes That a Panic is
Pending That Will Make
Gold Dollars Look
Like Canadian
Dimes.
1Ry Associated Press)

(By Associated Press)
NEW YORK. January 4.-Unless there
IN currency reform. a panic. beside which
former panics will seem inslgnificant,
was predicted by Jacob II. Schir. head of
the banking firm OF Kuhn, Loeb & CO..
In u speech before the New York Cham
hr of Commerce to-day. Mr.. Schiff said
he did not regard such panic, iinini-
nsnt, but believed 1t viii come unless
something lis done to remedy the lack
OF elasticity of tho present currency
system. Hc declare& that he did not
favor the plan proposed by Secretary
OF the Treasury Shaw for relief OF the
situation, 1t being his opinion that the
aecretarys plan would aid speculation
rather than legitimate business. Mr. Schin
favored a currency based on commercial
paper as more helpful to the general
business interests OF the country.
The sprech created sensatlon IN
financial circles and caused sharp
hreak In prices ON the Stock Exchange.
The meeting OF the chamhcr was at
tended b. a large number OF business
the subject offered by Mr.. schiff was
unanimously adopted. The resolution
instructs the Committee on Finance and
Currency 10 submit a report on the re-
cornmendatfon OF the Secretary OF the
Treasury When the tenor Of Mr.. Schih s
remarks became known in Wall Street,
the effect was shown almost instan-
taneously in the stock market. There
was pressure to sell and support to
prices seemed entirely lacking. resulting
ip an uninterrupted decline up TO the
close which was active and weak. me
shares most vulnerable were those winch
have been the leaders in the recent pun
speculation, especially the metal stocks
Anaconda fell to 9, IL points below last
night, and rallied one. closing "a 1-2 lower.
Some of the Losses.
Other losses were: Amalgamated Cop
per. 33-S; St Paul. 11-4: Chicago and
Nortwestern. 2: Delaware and Hudson a;
General Electric. els: Great Northern.
preferred 8; Louisville and Nashville,
ia; Northern Pacific. 2; Peoples Gas,
ia; Reading, 9. and Nirginla-Carollna
Chemical, lis. These declines occurred
In spite OF the fact that call money,
while still firm, was easier than for some
days. loans having been made as low as
market Mr. Schtff made this supple
nentary statement:
"aiy remarks were dictated simply by
the conviction that something must be
done to correct our inelastic currency
system II wc are not to run in time
into great disaster. We are trying to
play the role of giants while still in our
swaddling clothes"
Mr.. Schif, in his remarks at the Cham
Der of Commerce, said in part:
II don't like to play the role of Cas-
sandra, but mark what l say, II this
condition OF affairs is not changed and
changed soon. We will get panic in the
country compared with which the three
child's play. There is no disaster soon
upon us: don't misunderstand; but this
is the, time to prepare for 1t. We have
long session OF Congress before us;
and IL the President of the United
States will only put part of the energy
which he has so admirably put into the
attempt to regulate railroad rates, into
an attempt to cure the condition of our
circulating medium. the material interests
of this country-and after all 1t Is the
material interests that underlie every
thing-that material interests of this
country can be safeguarded for, a very
long time to come.
Disapproves Shaw's Plan.
II have asked that this Recommendation
Geferring to Secretary Shaw's plan) be
referred to the Committee on Finance and
Currency. / don't want to be under
stood that / am in favor of the Acom-
mendation. think it is very poor
recommendation. / believe il our banks
are permi ted to issue go per cent of their
present circulation without security, that
It Will go just where it ought not to CO.
1t VIII go into speculation. But we ought
70 have an elasticity of our 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 1t be only done for
me legitima needs of commerce; 4 ;;3ir,i5,,
dustry and trade 4
Hlf any increase-I don't believe so per
cent. Is needed. which would be two hun
dred and fifty milllpns--if any increase
OF circulation was secured so.ely by
legitimate commercial paper-commercial
paper based upon possibly a deposit with.
certain clearing houses In the country !,
If circulation is secured by lepitlmh !
commercial paper, It is certainly sa.fa
r The remedy must be found, and must ba
found soon"