Tonopah daily bonanza. [volume] (Tonopah, Nev.) 1906-1929, 1908-01-25
SILVER TO
RELIEVE CRISIS
TO INCREASE USE
OF THE WHITE METAL
IN GERMANY

Reichstag today in reference to the
high rate of discount charged by the
Imperial Bank, Count Won Kanitz
suggested that President Roose-
velt's threats against the trusts"
was responsible for the critical fl
nancial situation existing today
throughout the entire world.
These threats, the Count said,
constituted the real cause of the
present financial condition" He
added that the opponents of the
trusts must recognize that interfer-
ence with the financial activity of the
United States, which is based on the
operations of the trusts, means in
reference with the entire economic
situation in America.
Americas error is that she al
lowed the trusts to go so long with
out interference, said the speaker.
Count Won Kanitz reviewed what
he called 1.-The frenZied finance" Of
America of the past five months, and
drew attention to the recent fight
for gold in Europe. He said that i'll
the month of November alone 1885,
100000 marks (about 9,5O0,OO0)
had left Germany for the United
States. Continuing he declared
that the assistance given by the
American Treasury Department had
very little effect in improving con-
ditions.
Count Won Kanitz pointed to the
unfavorable commercial balance of
European nations, particularly Ger
many, toward the Uuited States.
He took issue with the American
statistics concerning foreign trade,
declaring that in 1906 Germany had
imported American goods to the
value of 1,236,00O,000 marks and
had exported to the United States
only 636,O0O,0OO marks worth.
This left a balance Of 100000
marks in favor of the United States,
but the American statement declar-
ed that this balance amounted TO
only 391, 100000 marks. This bal
ance had not been met by shipping
profits and dividends on American
stocks in German hands In addi-
ton to these unfavorable balances,
another factor in the situation was
the gigantic sum of 100000
marks insurance which Germany
had loyalty paid in connection with
the San Francisco disaster, although
the German companies were not le-
gally bound to do So
Continuing, the speaker expressed
the opinion that the United States
will need much more money and that
| this will come from Europe. He
| then asked what means would be
adopted to prevent this outflow,
which even high rate of discount
could not keep back. He suggested
a moderate return to bimetallism by
issuing in Germany silver coinage %
the amount of 25 marks per capita,
which he said would improve the
situation. He upheld the method of
the Bank of France, which issues
silver coinage to the value of 40
marks per capita of population, as Il
model in this connection, declaring
that this system permitted France
to have such an enormous gold re-
serve The shortage of money, &C
cording to Count Won Kanitz, made
the restoration of orderly financial
conditions questionable. particularly
as there are indications that period
of industrial adversely is beginning.
At the beginning of December
there were in Berlin alone $4,000
skilled workmen without employ
ment, and since that time the figures
had been increased greatly.
| Referring to the prospects of
floating the new loan Count Won
| Kanitz said these were most unfa-
Jvorable. He was almost certain
that interest at the rate of per
cent would be necessary, and that
this would affect the other state OBJ
lligations Industrial shares had lost
fully one-quarter of their value.
I Dr.. Bethold Bethman-Hellweg
Minister of the Interior, replied to
Count Won Kanitz concerning Ger
many's solid financial situation, but
he did not touch upon the question
lof Germanys special financial rela'
lions with the United States. The
number of prosperous industrial and
commercial undertakings was create,
lin proportion than the increase In
population. Furthermore, the grow.
ing completely in the exchange Of
commodities had caused an extraor
binary demand for capital and cur
lrency, and this hadsbeen secured only
with an unusual increase in the rate