Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-12-07
SCH|Ff ATTACKS BANK
Financier StartIes Chamber of
Commerce With Allegation.
AGAINST A LEADING BANK
Calls for Drastic Measures to Put an
End to Jobbery.
HE REFUSES TO BE SPECIFIC
Declines to Mention Bank Referred to,
but Others Do Not Hesitate to
Guess Name
HE REFUSES TO BE SPECIFIC

NEW YORK, December 7.-Jacob H.
Schif delivered telling blow yesterday In
the cause of monetary reform when he
made the sensational charge before the
Chamber Of Commerce that local bank of
prominence manipulated the money market
to It's own advantage and to the great dis
turbance of banking credits. He said pres
ent conditions of the money market were
barbarous and urged that plans be devised
to regulate the call money rate.
Mr.. Schiff, in discussing a resolution intro
duced by him to provide for proper regu-
lation of the money rate, said the bank in
question called loans when the rates stood
at or per cent, thus causing a rush
among borrowers to renew loans elsewhere.
The same institution, after having caused
the disturbance in the money market lent
its funds at the higher interest rates.
While the declaration made a sensa ton in
the Chamber of Commerce it's effect in gen.
eraf banking and brokerage circles was
even more pronounced
A year ago Mr. Schiff in discussing the
prevailing abnormal money market condi-
tons before the Chamber of Commerce pre-
dicted financial panic in the United States
unless relief was afforded through currency
reform. His words gave impetus to a
tional movement in that direction, and the
efforts have crystallized into currency bill
which has been approved by the American
Bankers Association and the Chamber OF
Commerce committee.
Mr.. Schiff's Charges.
At the regular monthly meeting yesterday
Mr.. Schif introduced a resolution asking
the finance committee of the chamber to in
quire into the condition and prescribe for
the regulation of money rates. This is Mr..
Schiff's resolution:
Resolved, That it be referred to the COM
nfftee Of finance and tn eyaunina
into and report upon the practicability of
devising means through which the interest
rate beyond per cent upon call loans made
at the New York Stock Exchange can be
better regulated than Is the case at pres
emit" -
I'VE find ourselves again in tIae.midst of
conditions as to. call loans at the New York
Stock Exchange which are nothing less
than barbarous.' said Mr. Schiff. II cannot
for a moment believe that, while at times
under existing methods and conditions,
money is Likely to advance beyond the legal
rate of INTEREST," cannot, l say, for mo-
ment believe it is necessary for the rate of
interest on demand loans at the stock ex-
change to advance on single day from
or per cent in the morning to % or 80 per
cent and higher in the afternoon.
1T must be in the long run destructive
of the best interests of the country, and
there must be means, even II they are diff
cult to find, to better regulate such a state
Of affairs. Such means may be actual meth
DDS moral methods.
ut is stated, for instance, that one of the
prominent-and 1 do not hesitate to say SO.
because it is stated with much emphasis
that one of the prominent financial institu-
lions of this city, which is large loaner of
money, makes it rule, when money in the
morning is only or per cent, to call its
loans and to wait until the rate has ad-
vanced, which it naturally does in conse-
quence of large calls, to consent to loan it's
money again
"Such methods are reprehensible and
ought to be corrected by moral pressure
and moral means; but there must be actual
means, which possibly is the clearing house
and possibly is the stock exchange Itself.
believe the committee on finance and cur
rency If it looks into the question can sug-
gest something which to some extent at
least will, even IL the present condition can
not be greatly improved, improve it to some
extent