The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1914-11-29
SCH|FF EXAMPLE
OF REWARD COMING
TO STEADY EFFORT
Baruch Also Was an OBJ
scure Bank Clerk Only
Few Years Ago
NOT A SMIRCH ON
EITHER CHARACTER
Henry p. Dawson, the Authority on
International Finance, Was Clerk
ing in Bridgeport Bank
Twenty Years Ago
BY HOLLAND


Jacob H. Schiff and Bernard Baruch,
private bankers of New York. whose
subscription to the so-called cotton
pool fund of 500. 900. 900 made it posi-
Bile to complete that fund SO far as the
nor-cotton producing states are con-
cerned, are understood to have made
tho subscriptions of their own motion.
They were not appealed to- although.
o. course. they were brought from lime
to time in touch with those who were
trying to establish pool. Both knew
that there might be some risk, or at
least considerable time in which
their capital thus invested would be
tied up. Both were familiar with cer-
tain legal opinions which seemed to
cast DOUBT upon the legality of the
ur dertaking in view of the provisions
of the Sherman antitrust law. Both
overlooked. however, these considcra-
lions, as did the managers of the banks
of New York city who contributed ap-
proximately s5o,oOo,O 900 to the pool.
The higher considerations which JUS
titled this action were that 1t was for
the benefit not only of the cotton
Planters of the south, but probably for
the whole country, If the dangerous and
difficult cotton situation were relieved
No one believed that in the future any
attempt would be made to test the le-
gality OF the cotton pool undertaking.
Certainly none will be made while the
present administration Is In power, and
public sentiment would not support any
proceedings aimed at this beneficial
pool at any time hereafter.
Mr. Schiff has gained national and
also possesses an international reputa-
ton not only as a private banker, but
also as man whose banking bust
ness, vast as 1t is, has not limited his
view or dwarfed his understanding of
the relations which should be estab-
lish ed between large financial interests
and the public. His own career Is one
of the best illustrations of the oppor-
trnities which the United States Of
fcrs to young men who have no other
carital than energy. industry and god
habits and who maintain the relations
of good citizen. When Mr.. Schiff
came to New York, a little after the
close of our civil war, he was employed
as a bank clerk and lived upon a mod
crate salary. His promotion was in
evitable because in addition to the fl
deity with which he discharged his
regular duties he was occupied in al
his leisure moments in a study of the
principles and philosophy of the bank
ipg bushes. Not long after he was
made member of the firm of Kuhn,
Loeb & Co. he gained first local and
afterward national reputation by his
activity in certain philanthrophies and
by the courage with which he some
times made public his views, which
were not always in accord with the fl
nancial administration at Washington.
He created a profound impression when
at meeting of the Chamber of Com
merce some years ago he pointed out
some of the dangers that 1urlxed in the
treasury department administration of
PIT bile funds which were utilized for the
purpose of aiding in the moving of
the crops. That purpose Mr. Schiff
orrroved and he has in a private way
demonstrated his approval through the
assistance which his own bank gave at
that time to facilitate crop movements
1t was what he regarded as a danger
GUS stretch of the discretionary author
| ity of the Secretary of the Treasury
that he criticised publicly.
1t has often been observed that in
| response to public opinion, and some
times before that opinion Is formu-
lated into law, Mr.. Schiff took such
action for his bank as made 1t clear
| that he respected reasonable and wide
spread public opinion.
| Yet the banking house of which
he was the head at the time when there
were countrywide accusations alleg-
| ing the establishment of money
| power and credit monopoly in New
York was placed in the list of insti-
buttons which then controlled money
and credit
| The First Answer
| The first good opportunity of an
swering these allegations came when
President Wilson asked and then urged
Paul Warburg, who was a partner In
the house in which Mr.. Schiff was the
head, to become a member of the fed
eral reserve board. Then, again, when
the city of New York was in dire ex-
| tremity, In August of this year, Mr..
| schiff, with the cooperation of Mr..
Morgan, organized the syndicate of
New York banks which agreed to fur
rish Ss2, 000.000 in gold with which the
credit of New York city abroad could
/ be maintained. He was also of aid in
| the organization which was called the
gold pool of 3100,000.0o0, which was
of value In enabling American mer-
| chants and manufacturers to secure
means with which they could pay their
current obligations abroad.
Mr.. Baruch Is one of the younger
| personalities of the financial district
who have achieved success His name
was familiar one In financial circles
but not until he voluntarily came for
ward with a contribution which to-
made up the deficit of three millions in
! the $100,000,000 cotton pool did his
name become familiar one to the pub
lie. He, too, in his career showed
what opportunity. II 1t be accepted,
means for a young man. About the
time President Mckinley was first in
augurated he was an inconspicuous
clerk Today he is ranked among the
great forces OF the Wall street district
and he has gained that reputation with
out the slightest smirch upon his char
acter, personal or business. Mr.. Baruch
is member of a family which has
gained distinction for intellectual abil-
ity and for high achievement. His
b, ether DIR. Simon Baruch stands ac-
knowledged as one of the foremost
members of the medical profession OF
the world.
Representatives at London Conference
Sir George Paish and his associate
Of the British treasury. Basil B. Black
II EFT, have been recalled to London and
ID ere now upon the high seas The Lon
/ don bankers are anxious to get better
Information respecting the proposition
that there be an international credit
of 500, 900 established as an einer-
gcncy measure in London than they
were able to obtain from the concise
cable dispatches sent by Sir George
In the Wall street district it has with
in a few days been known that .hi'
credit is to be regarded as an emer
gcncy measure somewhat similar in 1T