The age-herald. [volume] (Birmingham, Ala.) 1897-1902, 1899-12-03
DEFENDS HIS
RECORD IN SENATE
Explains the American international
Bank Bill and His Position
on the Measure.

In the following communication Senator
John T. Morgan defends the attack made
on the american International Bank bill''
by Governor Johnston in the recent joint
debate between them and makes full expla-
nation of the measure and his position up
on it:
In four speeches made in Limestone coun-
ty, Governor Johnston made but one crit
icism of my record in the senate during
the eleven congresses in whfch 1 have
served in that body. He objected to my
vote in favor of the bill ITO carry into
effect the recommendations of the interna-
tional American congress by the corpora
ton of the American bank" The governor
failed to support his objection by any ar
gument of his own, but contented himself
by reading extracts from a speech of my
colleague, Senator Pettus in opposition to
the bill. That speech was made while the
bill was in progress of construction and be-
fore it was amended and put on passage.
After he spoke to the bill it was so amend
ed that expected him to vote for it, but
he did not. 1 opposed the bill until 1t was
amended, and was then satisfied with it.
I accept the opinion of Senator Pettus as
being, in the highest degree. valuable and
important, yet l am still in favor of that
bill as dt passed the senate, after it was
amended to meet some of the leading Obj
jections my colleague made to it.
The measure was recommended by the
great international conference held in
Washington In 1888, at which the United
States and all the Latin states of America
were represented by delegates. 1t was a
great and most important conference and
had for its leading purpose the increase of
trade between the United States and the
Spanish speaking people of North, Central
and South America.
The chief measure recommended by that
conference, after long and careful consid-
GRAFTON by the largest and ablest interna-
tonal body of delegates that ever assem-
bled on the western hemisphere, is em-
bodied in the bill. l regret that time was
not found to consider It in the house of
representatives.
Liverpool and London. through the finan-
cial power of the Bank of England, have
for more than two centuries furnished the
capital, or credit, that is essential to carry
our export crops and productions after
they are shipped, until they can reach the
consumers.
has been equal to more than nine-tenths OF
the entire value of our crop, until very
recent period, and now 1t Is equal to three
fifths of that value.
The leading purpose OF TINS measure Is 10
draw capital from American states that
will enable us, and them, to handle the
vast interchangeable productions of which
commerce consists, without going TO the
great money centers across the Atlantic
for the capital to hold them until they are
manufactured and the consumers could BUY
Them
If we could have had such a bank in the
early days of our political independence,
instead of having our productions priced
In Liverpool, or London, We would now
have complete commercial independence OF
those great money centers.
1 will only state this important matter
in order to draw to 1t reflection and exam
dnation, without now attempting to discuss
it, further than to say that the bulk OF
our exchanges, when balances are to be
paid, either way, between us and the is
lands south of us, are caShed in England.
The creation and fostering of lines of di-
rect communication and trade with those
states can be greatly assisted by this pro-
posed financial agency.
On the 18th of June, 1898, when this DILL
passed the senate, Dewey had, virtually,
destroyed the power of Spain In the Phlllp-
pines and I was expecting like result In
Cuba and Porto Rico, and / wanted some
financial agency through which, the com
mercial exchanges between US and those
countries would be under American con-
troll.
The results that have followed the war
with Spain, as they are now fixed by the
treaty of peace, more than ever demand
that we Shall establish American control
of all financial movements in these Islands,
as far as possible. consider this the most
essential feature of the question of good
and permanent government in those coun-
tries.
To accomplish anything in the direction
I have Indicated we must either rely on
our $500 national banks, or upon some
chartered interna tional bank. 1t is true
that we were Independent of England, at
least in our external financial business.
The more than $500 national banks are
as nearly one machine as 1t is possible to
create by law; and am afraid to place the
entire control of our finances in the charge
of the ruling bank in that great monied
o1igarohy. I want some competitor to Keep
their power In check. Having deSpaired OF
the removal of federal repression from the
state banks, took to this financial institu-
ton as the next best plan that rs possible
for those who live by creating the products
of the earth This bank is forbidden to
issue bills to circulate as money, and can
not therefore, increase or diminish tine
volume of money, and must always incline
strongly to the specie IN the payment OF
its commercial paper
Being international, with agencies In otn-
er countries and stockholders in various
American states, and branches in our
states, 1t will draw money from other coun-
tries and will interest their people In our
commerce, and our people with theirs.
. The rates of interest that can be charged
on loans, or discounts, must conform TO
the laws of the states of this union, in
which the bank, or branch bank, Is located.
This Is distinctly provided In the 9Th sub
division of section 7, of the BILL and the
state courts are given full jurisdiction of
all suits by or against the. corporation, IN
section so of the act.
The corporation and its branches are re-