Tonopah bonanza. [volume] (Butler City [i.e. Butler], Nev.) 1901-1909, 1908-02-01
Favor Silver
to
Relieve Crisis

BERLIN, January gin tho
course OF an Interpretation In tho
R~eiehstag today in reference 10 tbe
nlgh ate Of discount charged bv ne
imperial Bank, Count Won Kanitz
suggested that President Roose.
Yeits threats against the trnsts.
was responsible for the critical !
nanclai situation existing TODAY
throughout the entire world
lhese threats, the Count satd
constituted the real cause ~ "a
present financial condition" 10
AIDED that the opponents Of the
trusts must recognize that interfor-
ence with the financial activity of ~
united States, which is based on ~
operations of the trusts, means In
reference with the entire eeonomio
situation in America
Americas error is that She al
lowed the trusts to go so long with.
u interference said the speaker
count o Kanitz reviewed wha,
ne called the frenzied finance, If
America OF the past five months ana
drew attention to the recent 6gbt
Tor gold in Europe. He said that Il,
the month of November alone 15S-
ooo'oOO marks (about s39,50O.ooo,
had left Germany for the trnita,
States. Continuing he declared
that the assistance given by tbs
American Treasury Department had
very little effect in improving ron.
dltions.
Count yon Kanitz pointed to the
unfayorable 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, 900 marks and
had exported to the United States
only 636, 100000 marks worth
Ihis left a balance of COO. O
marks in favor of the United States.
but the American statement declo,-
ed that this balance mounte m
only $4,000 900 marks. This hal
ance had not been met by shippip
profits and dividends on American
stocks in German hands. In addj-
ton to these %unfavorable balances
another factor In the situation was
the gigantic sum of 3O,O00.OO
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. lie
then asked what means would be
adopted to prevent this outflow.
which even a high rate OF discount
could not keep back. He suggested
a moderate return 10 bimetallism by
Issuing in Germany silver coinage D
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 4
model In this connection, declarin.
thai thie system permitted France
70 have such an enormous gold re-
serve. The shortage of money. ac-
cording to Count Won Kanitz. made
the restoration of orderly financial
conditions questionable, particularly
as there are indications that a period
OF Industrial adversely is beginning
DIT. Bethold Bethman-Hellweg.
Minister of the Interior, replied 10
Count Won Kanitz concerning Ger
many's solid financial situation. but
ne did not touch upon the question
OF Germany's special financial rela-
tions with the United States. The
number of prosperous Industrial and
commercial undertakings was greater
In 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
rency. and this had been IL nly
with an unusual increase Il the rate
OF interest. The situation In the in
ternational money market had inau-
enced during the last few months the
relations of Germany's debtors and
creditors. The reduction recently OF
the Imperial Banks rate of discount.
however, indicated that with the be-
ginning OF this year the strain on
the bank had materially diminished.
The financial pressure on London.
Vienna and Paris also had been. the