The Birmingham age-herald., 1908-01-15
BLAME IS LAID
 UPON ROOSEVELT German Legislator Talks of the
 Financial Situation BAD MISTAKE BY AMERICA Count Won kanitz Declares That American Government Allowed Trusts To Go On Too Long
 Without Interference.
BAD MISTAKE BY AMERICA

Berlin, January 14-In the course of an interpolation in the Reichstag today n reference to the high rate of discount charged by the Imperial bank, Count Won Kanitz, conservative, suggested that Pres ident Roosevelt's threats against the trusts were responsible for the critical financial situation existing today throughout the entire world. Count Von Kanitz pointed out the unfavorable commercial balance of European nations, particularly Ger many, towards the United States. He concerning foreign trade, declaring that in 1906. Germany had imported American goods to the value of 1,236, 100000 marks and had exported to the United States only 636,0O0O0O marks worth. This left a balance of 600,0o0.O0O marks in favor of the United States, but the American statistics declared that this balance amounted only to 391,000 marks. This bal ance had not been recouped by shipping in German hands.
 The threats, he maintained, constituted the cause of the present financial cond- ton. He added that the opponents of the trusts must recognize that interference with the financial activity of the United States which is based on the operations of trusts means interference with the financial economy in America.
 Americas Error.
 Americas error has been that she al- lowed the trusts to go so long without in- reference" said the speaker.
 Count Von Kanitz reviewed what he called the frenzed finance' of America of the past few months, and drew the at tention of his hearers to the recent fight for gold in Europe. He said that the amount of gold leaving Europe cannot be estimated exactly, but that in the month of November alone, 15S,0o0,O00 marks (about sS9, 800, ,OOW had left Germany for the United States. Continuing he de- clared tbat the assistance given by the American treasury department had very little effect in improving conditions.
 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 a high bank rate of discount could not keep back He sug- gested moderate return to bimetallism by issuing in Germany silver coinage to 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 model in this connection, declaring this system permitted finance to have such an enormous gold reserve. The shortage of money, according to Count Won Kanitz, made the restoration of the orderly finan- cial conditions questionable, particularly as there are indicated in period of i'm dustrial adversity. At the beginning of December there were in Berlin alone 25,000 skilled workmen without employment, and since this time these figures had been increased greatly
 Prospects For Loan.
 Referring to the prospects of floating the new imperial loan, Count Von Kanitz said these were most unfavorable. He was almost certain that interest at the rate of 4 per cent would be necessary, and this would affect the other state obliga- ton. Industrial shares had recently lost fully one-quarter of their value.
 Dr. Theobald Bethmann- Hollweg, min- ister of the interior, replied to Count Won Kanitz concerning Germany's solid finan- cial situation, but he did not touch upon the question of Germany's special finaD- cal relations with the United States. He said that the causes of the present scar city of money in the German market could be traced to the continuous inn provement during recent years of the economic situation in Germany. The number of prosperous industrial and conn mercial undertakings was greater in pro- portion than the increase in population. Furthermore, the growing complexity Tn the exchange of commodities had caused an extraordinary demand for capital and currency. and this had been satisfied only with an unusual increase in the rates of interest on loans. The situation on the in- ternational money markets had influenced during the past few months the relations of German debtors and creditors. The re- auction yesterday of the Imperial bank ratA of discount by 1 per cent, however, indicated that with the beginning of this year the strain on the bank had material ly diminished