The Hawaiian gazette., 1906-01-16
SCHlFF WANTS MORE
ELASTIC CURRENCY

NEW YORK January 4-Uness there is currency REFORM
panic beside which panics will insignificant pre-
dicted by Jacob H. Sch the banking firm OF Kuhn Loeb
Co., speech before the New York Chamber Of Commerce
day Sch said he did regard such panic imminent but
believed it would unless something done remedy the
lack of elasticity OF the system He declared that
did favor the plan proposed by Secretary of the Treasury
Shaw for relief Of the situation being his opinion that the Secr
tar plan would aid speculation rather than legitimate business
Sch favored based commercial paper help
full to the general business interests of the country.
In the of his remarks the Chamber of Commerce.
Schiff said:
I'VE witnessed during past sixty days conditions
the New York money market which nothing less than dis
grace any civilized country There be for such
conditions 1t be the condition of the country ITSELF for
wherever you look there prosperyprospery had
before. 1t be that the speculation which prosperity al
ways brings forward the sole for the conditions Other
countries speculation than the United States
in France, in Germany and in England speculation
pant The is the insufficient elasticity of circulating
said him. The national banks gorged with their deposits
Take OF these deposits and prevent this condition. else
money will seek other countries Make yourself strong don't
wait until the time when you make yourself strong
The Secretary answered and said that he did wish
withdraw any deposits for he did have the
funds withdrawn when deposits might be needed and he said he
feared the criticism of the Then what happened that
he left the larger part of these deposits
money too and at that time the deposits became much
duced He did not deposit when probably twenty thirty
forty millions would have changed the entire of affairs
for only the last twenty five thirty millions that wanted
> that determine the high rate
I "He did deposit because he did mix
up money matters he could spare money had
strengthened himself when money less stringent would
another condition for the Secretary the Treasury
be in condition help the market if that
preston and much asI opposed helping the Sub
in the matter long have such system that the
SubIreasury the depotay of the long the Sub
Treasury the role that the Bank of England plays the
money market of England
If very easy in England the Bank of England goes
into the market and borrows from the market money very
tight in England the goes the Bank of England
its money from the Bank OF England Fortunately your Sub
Treasury play this role; help it. do not like c
play the role OF Casanda but mark what If this
diton of affairs changed and changed will hav
panic in this compared with which the three which hav
n preceded it would only be cllds play.
There is disaster upon us-dont misunderstood mebu
this is the time prepare for it. If the President will only
part the energy which he has admirably into the
regulate railroad into attempt to the
dton of circulating MEDIUM the material interests OF this cour
s. try be saeguarded for very long time to come.
Il have asked that this recommendation (refeng to Secre
tary Shaw pan be referred the committee finance and
do be understood that in favor of tn
recommendation think it very poor recommendation be
eve that banks permitted issue per of the
circulation without security will just where it ougf
u not to got will into speculation Legitimate business tn
merchant and manufacturer, stand of
additional circulation but speculation stand it, and the
h moter will pay
I'd Il don't believe that the increase, which would
S25oooooo needed circulation is secured by legitimate
e merca paper it is certainly safe"