Daily new dominion. [volume] (Morgantown, W. Va.) 1897-1906, 1900-02-14
MONEY WOULD BIZ USED
No Currency to Be Idle Under
New Bill.
SENATOR ALLISON so DECLARED.
Defended the Financial Bill in the SEN
ate-Jones CSev) Called 1t Climax of
Efforts 10 Abolish the Use of sill
ver-Fnrther Attacked the Measure.

ver-Fnrther Attacked the Measure.s
WASHINGTON, Feb. 14.--Mr. Allison
Gowa), the ranking Republican mem
Der of the financial committee, addressed
the senate on the financial measure.
He said in part that the pending meas
ure was proposed to deal with the cur
rency question in. a large and general
way. Mr.. Allison referred to the senate
substitute for the house bill and said
there was no proposition to change the
existing cuTrency-gold and silver GER
tificates, greenbacks, treasury notes and
national bank notes
Mr.. Allison said that from 1922 10 1878
this country had double stan ard Of
value He said that since the enactment
of the law of 1878 there had not passed
current siugle dollar of any kind of
United States money that was not Oh
absolute parity with the gold dellae.
The passage of this bill would practi
eal1y re-enact the provisions of the law
of 1878
Said he in part: "The present bill
makes the greenbaeks absolutely re-
deefnable in gold coin. In no sense does
the bill provide for the elimination of
greenbacls from our currency. want to
reiterate that there is not a provision In
the first section of the senate substitute
that is not now part of the law or that has
not been the practice of the government since
1879
Mr.. Lindsay (Ky) inquired whether IN case
there should be deficit, the gold olt"ircd
from the sale of bonds under the bill could be
used to pay current expenses of the govern
ment.
Mr.. Allison-Under the provisions of the SEN
ate substitute, to which / am directing my re-
marks, these bonds for obtaining gold can be
sold only when the reserve falls below $4,000
000 and l want here and now to express my
firm conviction and belief that it will never be
necessary under the bill to sell bonds for that
purpose
Mr. Iindsay-But will not the ultimate re-
suit be the retirement Of the greenbaclS?
Mr. Alson-Under this bill the greenbacxs
cannot be retired. | want to say that the re-
tirement of the greenbaolSs or any other part
of our money, should never be attempted with
out the most careful scrutiny and the wisest
| consideration of the legislation providing for
| it.
In response to another question by Mr.. Lind
| say Mr.. Allison said that the greenbacks,
under the provisions b the pending bill, prac
tically would be gold certificate and he
added ut is so now
Mr. Allison said that the bill did not provide
for the exchange of silver notes for gold be-
cause the committee did not deem it necessary.
The faith of the government had been pledged
to maintain them at parity, and that pledge
had not broken. We would never disgrace and
degrade ourselves by allowing them to go to
discount.
Further along Mr. Tillman asked:
Suppose next summer a Democratic presi-
| dent We're elected. / know that you think that
| impossible, but miracles have happened; sup
| pose Democratic president should take it into
! n m gold How
could silver dollars be maintained at parity if
| they are not redeemabe in gold p
you must catch your hare before you can
/ eat him, replied Mr.. Allison amid laughter.
'This scheme of finance then rests upon the
continued supremacy of the party in power ?'
mot at ALL replied Mr.. Allison Il am
speaking of silver certificates, not of the prob
ability of the election of a Democratic presi-
dent
Mr.. Allen (Neb.) interposed to say that his
objection to the bill was that the whole power
| to issue money would be turned over to the ma
| tional banks. Mr.. Allison replied that under
| the bill every dollar of our currency must and
would remain in circulation. The tail could
not wag the dog.
Mr.. Allison, turning to the refunding fea-
ture of the bill said it was a propitious time
| to redeem the bonds due in l90407 and '08
| The funding should proceed gradually in order
that there might be no friction in the money
market. We could save $22000,000 per annum
| by funding the bonds now. We could not be
| charged with favoring national banks when
we compelled them to deposit 2 per cent bonds
instead of pr per cent.
Mr.. Jones New in a speech, said in part:
| This measure is the climax of efforts that
have been made since 1869 to abolish the use of
/ silver. 1t Is certain that there will be addi-
| tional legislation presented at some subse-
quent date to retire the S3460O0D0O of green
backs. The gold standard advocates know
| that 1T would not do to attempt to carry through
| all of their plans at once. That would be a
! shock TO the American people. There will be
also an effort in the near future to retire the
| treasury notes.
''This will afford the national banks an ON.
! portunity to regulate the volume of all money
save only gold and silver coin. Thus an aggre-
CATION of private banking corporations will ex-
! ercise the sovereign function of issuing MONEY!
instead of that function being vested in the
| government alone"
Mr.. Jones declared that the measure provided
clearly for permanent increase in the bonded
| debt of the country, and that it is monstrous
| proposition that any executive officer of the
| government should have the power to bond the
American people.
Speaking of the provision of the bill which
will enable national banks to issue currency llo
| to the par value of bonds deposited Mr. Jones
| declared that the result of the authorization of
national banks to issue so great amount Of
currency as they would be able to issue by tine
provisions of the pending bill would be to
| place in the hands of the banks the credit of
the entire people and the power, in times OF
| financial pressure and financial stringency. alb
solutely to bankrupt thousands of people by
calling in loans in the regular conduct of their
| banking business.
This bill places in the hands of the national
/ banks the control of the bonded debt of the
! country" said Mr.. Jones. whenever the
banks see fit they can reduce the gold reserve
/ below the limit and force an issuance of bonds
| and this process can go on indefinitely"
! Mr.. Jones spoke with bitter sarcasm of the
financial dependence of the United States, de
slarng that cock fight in India, or war in
Africa with the Beers, disturbed the finances
| of S0,Oo0,000 Americans.
He maintained that this country should have
| its own distinctive money which would not
desert Us in time of trial, and in conclusion
| advocated the issue of paper currency by tue
| government alone. This currency should ns,
entirely independent of gold, silver or any-
thing else that POSSESSED inherent value. such
money, he argued, regulated in amount in ae-
| cordance with the population of the country