New-York tribune., 1907-12-03
Mr.. SCHIFFS ADDRESS.
Jacob Il. SchIS said in part:

The storm which has recently broken loose has
.lot Ter enurey passed. The causes Of the financial
s,ogo vet 10 me ii appears the answer is sur
rounded by t,uch doubt Inc origin Of the cr.ss Is
yi61aI 4s TSis ~ as consequences caused straining
.,f financial requirements. and particularly
credit. beyond legitimate limits. Nothing is prob
me oost;nacy with which new enterprises became
Geyeloped in every quarter even IN the lace OF
steadily increasing money scarcity. and further in
.iIe .rT eion and nrndence were not needed: The
march forward made with totally unpro-
Look only at the number of so-called trust COM
panies called into being during recent years ana
which under & falss fl flag ef BID for to ab9 m ns6 no
Cor legitimate banking but for iiegitinate promo
when their return asked for by those TO whom
they belonged. And not alone in financial guar
-.rc had 6eveIoped this prosperity maGnesS-in In
iustry and commerce prudence had nheMiss s @ peth
gnH When NJ warned that he was expanding too
largely. scornfuIy rejected the advice I" 20 at d
slower pace. His answer almost Invariably whs
that the demand for his goods was great, that ms
customers We're in good eondiuoIl u ana 'San St R
and complications existed Only IN WaII street Ils =
overlooked the fact that the basis Of large volume
,afsIT - bHSlhf Tested 70 great extent upon the Very
.5verexpansion Of enterprise represented by INC
nd that the collapse in security values would nave
Inevitably to be I followed low d2tr1 by breakdown OF 'S
And now. as a panacea for the ills under Which
ure are suffering. sudden demand has sprung up
throughout the country for currency reform LEI LEI
s. be said however and we oesfIx need
ed though il is can in itself never furnish protec-
climate business methods a properly constituted
circulating medium can furnish IN times 2f nnan- man
Tefor1n in the usodnd practices. which. 70 so con.
siderable an extent, have governed the affairs of
financial institutions. currency reform will be OF
liiiit,I5Si nttie avail '7'''N'-O''
The action OF the Governor Of the State Of New
YORK who. with statesmanke sagacity has just
aiken action with view OF corTeSting % through rough
upon revision Of the banking laws Of the state
he t gs mh1oR ReIeomed 0F
what we most in need Of at this iupetpre us Is
CIRCULATING medium can be made to respond md
promptly diminished S mSnsy G demand enr43os ex we
osnson in enterprise and general & business no less
vpon 70 Us been rather liberal in the creation Of
paper II we ars face nc, to feoe With SO
a volume OF paper money that gold VIII inevilaolys
ser @ eTiss can no longer ger be dge face face with
depreciation in the standard OF eIsdit OF she soo
Evanston OF the currency. when legitimatesy sly
needed will under proper provision for this, TAX
itself II only in any scheme for ,he reaofn I'm
,he possible contraction of the crcuiat-
Et1sate Ing Tsa,e 1e@irenents % Nor is likely that
hee for the isseaISe sdtsfscterr 81 Which shall
clcthe banks with the nriveee oI & 1ssn,ng SUNG
Iliete the safeeuards NAV appear-nroposed to De
ststea through the creation @ as Of e"a5apfss of fS
privilege single default even II only ten ent1
world liFelv create ffre'ooiee aefiiiSe ei'S S4NN
vourae OF the outstanding currency ,s .,or,.,
Whether 81 shall be central oank-ll au.nSrios y
for the setatlishnent Of such can be ootaineo-o:
a central sssoiafion Il national banks to possess t
no other junction than 10 issue TO the pahhs tne
circulating notes. to which under the stlpua%ons %
and restrictions TO be imposed by law thex n, sna
ecoine entitled there is needed central autnoft.;
10 pronerlv rontrHi and determine the issuance OF
anxl rrc,,ia,;rg rue5tum based upon assets. Such
a confroing central authority should and can best
be consfifited by the banks themselves An @ asso-
eIafion of national banks would Tor the tItiie
- least likely prove acceptabie anu ptAcn
saie Than a cesfrsI bsn nix. which Of necessity wouio
f.voutonize our entire national banking sys'.i. III,
-he one lesson 81 least. which we snoulo earn
ero.a recent experf-nce IL that the issuing OF
iesrire House certificates in the dsi,ere,-I naa AZ
esnrres hie no doubt II Ee5ped f2cens, n-s piso