The evening star and Newark advertiser. [volume] (Newark, N.J.) 1907-1908, 1907-12-03
KINGS
DIS USS
REMEDY
Great Financiers
Present Views at Big
Gathering.

AC1h attAN1lAAG VI OliAi1hi IL
Social Science. Probably no meeting
of the academy ever attracted as much
attention in this city, and Witherspoor
in which the speakers discussed
THE Lessons of the Financial Crisis
was SO crowded that the doors wert
closed against hundreds who sought
admission.
The speakers included F. A. Wander.
lip. vice-president of the National Cit,
Bank. New York; William B. Ridgley
of the Currency; Charles
II. Treat, of Orange, N. J.. United
Treasurer; Jacob II. Schiff, oi
Loeb & Co, New York; Isaac N
Of j. e. w. Seligman. New
York, and William A. Nash. president
Of the Corn Exchange National Bank
Of New York.
Mr.. Vanderlip presided at the session
and in his Introductory address said of tbs
condition:
Some people attribute the trouble to
the policies of the President of the
United States. while others find the
cause IN the gambling of Wall Street,
but it is probable that In neither of
these extremes will be found the real
cause of the present financial situation.
The Boer War and the Russo-Japanese
wars necessarily caused the destruction
Of much wealth and Immediately fol-
lowing these wars there came an UNI
precedented period Of worldwide ac-
tivity that found an insufficient capt.
tai"
Treasurer Treat said:
There is an u%ndoubted sentiment
that something should be done that
would place our monetary system upon
slph 81 broad and rDmnTaln nEiER basis
that would be lasting In its benehcent
workings; that would stand the test of
time, not only Of half a century, but
an entire century.
II advise legislation by Congress au-
thorizing the Secretary of the Treasury
to retire United States notes in sums
of not less than 100000 900 nor exceed
ing $lO0, 100000 a year. The payment
of h United States notes and the re-
leasing Of the reserve fu1d for their
redemption would give a legal reserve
of about 1885,. 10000 in gold for banking
purposes. The increased supply OF gold
would seem to be an assurance that
there need be no apprehension of a
sufficient legal reserve, in case $4,000
600 or $100,000,00 a year of g~reenbacks
were replaced by gold coin.
If the gradual retirement of green
backs was known to be the settled
policy of the government, this would
give rise to an enhancement of the
RA1ahA VI Az SVNAAAAA Civ liAc NNAAN
repute therefrom would fa- outweigh
any paltry saving of the interest ac-
count Such a step would convince the
international investor that gold was
tine legal and established standard of
the country. and that he might con-
fdently feel that his investment would
be returned to him in gold on demand.
1t would promote a larger growth OF
the national banking system, which is
doing SO much to uphold the credit of
our securities.
~ advise the retirement Of all out
standing silver certiicates-about s475,-
600, 000-and to issue therefore a 2 per
cent. United States fifty-year bond for
an amount not exceeding fifty to a hun
dred millions per annum. The silver
dollars so released from pledge to pay
silver certificates could be utilized for
the governments need Of subsidiary
coin.
Il would advise that the present issue
Of national bank notes be retired and
that the government bonds so pledged
for circulation and payment be re-
deemed by a special bond known as a
banking bond, bearing interest at 2 per
cent. for a term of not less than fifty
years, and that such bonds as are now
held for circulation shall be redeemed
and paid for at a premium of 5 per cent.
to reimburse the average cost TO the in
weston.
THE sale and purchase of these bank
ing bonds should be under the absolute
control of the government, and when a
bank desired to retire its circulation
the government should buy the bonds
at not less than par and without pre-
MUM. This would do much to pre-
vent the daily speculation in govern
ment bonds.
"The bonds so purchased should be
destroyed. The denominations Of the
bonds should not be less than $10,0 900 nor
more than 100000. The bonds to be is
sued for the retirement OF silver GER
tificates should also be banking bonds.
tional circulation, without contracting
the volume Of currency and the total
amount to five hundred millions, which
is the measure Of the volume OF silver
certificates, would then be reissued in
the form Of national currency.
THE new issue of bank notes should
be known as United States national
bank currency This designation would
give 1t an international recognition and
the sentiment of such a designation
would inspire worldwide confidence in
its g~enuineness and It's financial respon-
sibilitY."
United States Comptroller Ridgely dwelt
II the financial conditions existing in the
States. He said that a reaction
l business was due and inevitable; in
act, it had been in progress for some
me. The exact incident which precipitat-
d the crisis and produced a panic was
OF very material. He added:
The expansion of business and infa-
ton of credits, whether based on trans
actions which would be classed as
perfectly ound and legitimate, whether
on semi-speculative ventures or on
speculation pure and simple, had
reached the point where there had to
While it might be difficult to assign
any single transaction to one of the
before mentioned classes. it is impossi-
Bile to separate the results on the gen.
eral business situation and say which
added to and produced the catastrophe,
and which did not. how much was due
to legitimate enterprise and how much
to speculation. The time had arrived
when some one had to pay the penalty
for the indulgences of the past.
The reaction and liquidation were
not only absolutely inevitable, but nec-
and desirable in order to bring
business of all kinds back to it's nor
NAL condition. This should nave been
accomplished, however, In a much more
orderly, quiet way.
There never is any necessity for a
panic. and tbs OF all others should
never have taken place, because condi-
tions did not justify it in any way.
Least of all should we have had a
panic among the banks, and this par
ttcular panic might easily have been
and In its place we might
have had Il more reasonable n order
" readiustment OF credits and values,
IL we had a better system OF currency
arc a better system OF banking, both
national and State.
we would also have been in a very
much better position If the relations
between the business world and the
Treasury Department had beer on a
different basis; IL the Treasure De-
partment had been either entirely out
Of business and free from responsibility
as to business conditions. as 1t ought
to be. or If, being in business, 1t had
had fha ura,,ar ia ofliffoc 10 .1aaI uifb