New-York tribune., 1909-06-05
SCHIFF ON CURRENCY
fBanber Says Report Of Monetary
Commission Is Eagerly Atcdited.

Jacob r. schif. who has been abroad for about
ak weeks. returned home yesterday the Iusi-
tanis In response requests for his views on
conditions IN Europe and his opinion OF the out
slook here he said:
Conditions Europe appear far from salts
factory Germany has considerable task on hand
tn the reorganization Of its finances and finds much
difficulty in originating taxes, needed 10 sup
port its huge military and ever growing naval
establishment.
g. "A similar situation prevails in England, where
atfe Liberal party appears 10 he losing gre nd
Especially among the middle classes. because of iss
.sorialistic tendencies which find graphic express
sion in the budget now before Parliament. through
which II is oontended, almost confscatory new
s5axes-especially land-sre sought to be levied
IN France the unrest of labor deeply agitates
tfhe public mind this time hut the government,
sshough almost radical in composition. has taken
firm stand. and appears TO be gaining the upper
hand
Final settlement of tariff legislation in the
United states Is awaited everywhere in Europe
with the keenest interest it is felt that the
vval Of commercial and Industrial activity, fondly
expected TO follow the enactment OF the tariff bill
will have farTeaching beneficial influence upon
European commerce and industry.
much confidence is being expressed everywhere
3n the Taft adinistra ton. II Is particularly hoped
that with the tariff Of the way the solution Of
the currency problem will he sought with energy.
for St is already feared that unless this question Is
promptly dealt with shall only he again hesping
up new fuel. which in times to come viii bring on
another conhaeration.
LAS the first step toward this, the immohilzing
of capital through the enormous absorption OF new
securities the United States and the simultaneous
heavy gold export is being pointed to.
With a sound system should he IN position
1c reduce the volume of the currency to the de-
creased needs Of commerce and industry; as II is.
the large surplus Of paper currency not now needed
can be employed only in securities purchased, or II
must dspIsce our gold by driving IL 10 other coun-
tries: in fact both are being done, and after a
while shall have pay the penalty The re-
port Of the Monetary Commission IS, because of
this eagerly looked for
= Schiffs interest in currency reform is no ne"
thing In a notable address before the Chamber
Of Commerce January s. 1896. he declared that
the conditions which had prevailed in the New
York money market during the preceding sixty
[days when caH money had ruled at from 10 to 125
per cent nothing less than disgrace 10 any
civilized country and that those conditions were
the result of insufficient elasticity of the crculat
ing medium. subsequently the Chamber OF Com
rnerce appointed a special committee on cur
rsacv reform. The American Bankers Association
rappointeh a similar committee. but the plan
drafted by neither Of these committees met with
favor in Congress
A year or so ago. following the panic Congress
emergency currency up 10 S5G0oeo0oo. and created
the National Monetary Commmission, with the
tobject of framing a currency reform law which
tshoud provide CDrTehCv system fully adapted to
srhe needs of the country. Members of the
mission pursued extensive Investigations into the
currency systems of foreign countries. but the
complicated task Of preparing adequate cur
rency reform has been delayed by the
necessity Of enacting tariff revision Law.