The Washington herald., 1907-08-23
SCHIFF HAS REMEDY
Banker Suggests Cessation of
Federal Prosecutions.
ROOSEVELT IS NOT BLAMED
Believes Revision of Tariff Best
Means of Relieving Financial
TrOubIes-POints Out other Rea-
sons for Money Situation-War
and Earthquake Removed Wealth.

bar E1aTBUI- Ne, Aug -L.-Inat me
national administration is in no way re-
sponsible for the financial disturbances
is the opinion Of Jacob H schir, Of the
international banking house OF Kuhn.
Loeb & Co. who is staying here.
Expressing his views on the financial
situation, Mr.. schiff said
TO blame The Federal administration
for the difficulties In which we find our
selves is both thoughtless and unjust.
Even if the excesses which the great
prosperity of recent years has had in its
wake had been permitted TO continue un-
checked, before long a situation would
have developed probably far more diff
cult and serious than the crisis through
which We are now passing
In the first instance it is q result Of
the tremendous railroad, industrial. and
commercial development of the last ten
tai requirements largely in excess Of the
ability Of the country to supply Europe,
finding itself In a similar position 10 the
United States, has been unable to extend
US any considerable credit or to place at
our disposal surplus funds. such as has
been It's wont 10 invest so largely in
American securities in times Of depres-
sion.
War Took Much Money.
Moreover, it has been TO a great ex-
tent overlooked that the Russo-Japanese
war and the San Francisco earthquake
have destroyed an enormous amount Of
wealth. which sooner or later had to
make itself felt Nor has the fact that
both Japan and China have now entered
into competition for the surplus capital
Of the world been given sufficient atten-
ton.
NO other remedy for this state Of af-
fairs appears TO be possible than at least
a temporary reduction in our activities
until the country's capital and credit IA
cliities again have reached a point suf-
hcient for its volume of business.
7 believe railroad managers in general
have already recognized the necessity for
curtailment, but manufacturers and mer-
chants appear to be behind In this. The
sooner these two recognize the impru-
dence Of continuing at the present pace
the more certain viii they be 10 save
themselves from loss and the nearer We
shall come 10 the end Of the present IN
satisfactory state of affairs.
Roosevelt Not to Blame.
President Roosevelt is certainly not to
blame for the many abuses in corporate
management which have developed and
which he has had the courage TO lay
bare. At present, it .is true, We have TO
suffer ia consequence OF the Presidents
tncompromislng attitude, but posterity is
certain 20 profit by IT,
1T IS regrettable. however. that no ef-
fort has thus far been made on the part
of the 90 rernment TO reach an under
standing with the corporations through
which the necessity for these harassinE
prosecutions may cease. The abuses and
Illegal acts which it is now sought to
punish were committed mostly In years
gone by and resulted as much from hUsi-
ness practices which. at the time, were
very general as from the intention to do
wrong
To inhict extreme punishment now for
wrong practices OF two TO five years ago
looks too much ike originating in other
motives than in the desire TO safeguard
the future. which should be, and prob
ably is, the real purpose
Cease Prosecutions.
1T would no doubt tend toward a re-
establishment OF better conditions If pros
ecutions were TO cease. with the under
standing that violations Of the law on the
part Of corporations win hereafter be re-
lentlessly punished. both as far as the
corporation and its executive officers are
concerned; that established concerns
which for years have carried on their
business unmolested shall not now be
sought to be dissolved. but that hereafter
no interpretations will be permitted which
in the opinion Of the Department of Jus
tice would even tend toward a restraint
of trade and commerce.
Nothing. however. will so thoroughly
prevent the building up Of great monopo-
lies and the accumulation Of the vast for
tunes, the existence of which is at the
bottom Of the prevailing social unrest. as
a sound and sensible revision Of the tariff.
Il is right that American industry and
the American wOrkingman be protected
against undue foreign competition. but it
cannot be right to compel the American
consumer to pay vast profit to the man
Ufacturer where the latter under q much
lower tariff would be able to maintain
himself. Herein lies the principal remedy
which needs to be applied if the causes
which have brought about present condi-
tons are to be permanently eradicated" p"