The Birmingham age-herald., 1906-01-06
GAGE ALSO SEES
 BIG DANGER AHEAD Something Must be Done for
 Money Situation STATUS IS DISGRAcEFUL
Former Secretary of Treasury Thinks, However, that Secretary shaw's Plan for Relief is Good With
 Notifications.

New York January 5.-Lyman J. Gage former Secretary of the Treasury, said today that he agrees with Jacob H. Schiff in the opinion that a great panic is in- eyitable unless steps are taken to rem edy the inelastieity of the exchange cur rency system.
 "I agree positively with Mir Schiff, said MT. Gage" that the monetary condi- tions which have existed in this country during the last sixty days are disgraceful to us as a nation, and I further agree with him that a stunning panic is but a matter of time unless something Is done. The more promptly and effectually this is done, the better for us. In my opinion there is no immediate danger, but the danger itself Is apparent, and if the coun- try sits passive under existing conditions the country will suffer I don't understand how any careful and thoughtful finan- eier can fail to realize the peril
 "I see that MT. Schiff objects to Secre- tary Shaw's recommendation of an emer- gency circulation of heavily taxed bank notes, holding that such plan would fa- cilitate speculation rather than the legiti- mate interests which stand in need at present I may say that I believe that Secretary Shaw's idea an excellent one with certain notifications. With those notifications I believe his proposition would provide a cure
 M-. Gages attention was called to the statement by MT. Schiff that the reform currency conditions Is a more important matter for. the President to take up than railroad matters. The former secretary then said;
 q regard it as the highest public duty to provide a more elastic currency with out a moments delay, and I believe the work of securing proper legislation to relieve the present circulation conditions is high public duty of the President a very high public duty"
 critlcizes Schlffs Plan.
 A Barton Hepburn. president of the Chase National bank. and former comp troller of the currency, criticised MT. Schiff's plan as being neither safe nor practicable.
 Certainly something must be done," he added. we have no government bank to fall on, and some way of improving present conditions must be found.'
 When Jacob H. Schiff was informed this bSNii as impracticable, he said that perhaps he had not made himself thoroughly un- derstood He said he had no idea of try ing to inf1ate the currency by issuing paper money against the commercial pa per already in the banks, but his idea was merely to make more secure the plan already advocated by Secretary Shaw. MT. Shaw's plan, he said. was a pro posal to let each national bank issue 50 per cent more currency than it now is- sued without any security whatever. Mir. Schiff said he merely wished to have that extra 90 per cent of currency secured by the commercial paper in the banks.
 MT. Schiff added that he would not try to work out the details of the general plan he had in mind. But he reiterated that unless some sound scheme of stretching i the currency in times of need were soon found by the national government the next panic would be a disaster greater than the United States ever before ex- perienced.