The Grit-advocate., 1903-07-10
Washington Correspondence

Spe6keE-tD-De cannon, VINO u6S been
spending a few days In Washington,
| has left CONSERVATION behind him by
his assurances, made to few promi-
tnent republicans. that he would not,
in his capacity as speaker, permit the
consideration OF any financial legisla-
tiOn At the next session Of congress.
Mr.. Cannon knows that the senate
committee on finance appointed a sub
committee including Senators Aldrich,
Spooner, Platt of Connecticut, and
Teller, to sit during the summer, and
prepare financial bill which it is
commonly understood will be along
the lines OF the Aldrich bill, pressed
for passage at the last session. One
meeting OF the subcommittee took
place at Hot Springs, Virginia, and
much preliminary work was disposed
OF. Another meeting Is scheduled to
take place In August when it has been
expected to complete the proposed
measure. This measure ia understood
to have the tentative eDdorscmcnt Of
the administration and 1t was with the
hope OF inducing the president to
sanction its consideration at the spec
ial session TO be called In November,
in advance OF the Cuban treaty, that
George w. Perkins, partner Of J. Pier
pont Morgan, called at the White
House with Senator Hanna Il few days
ago. Mr.. Roosevelt. having learned of
Mr.. Cannon's opposition, refused the
request, however.
1t was not until this week that the
knowledge of Mr.. Cannon's views be-
came public and consternation. In the
east, ut least, has been the result.
Four OF the leading New York papers
have expressed themselves editorially
on the subject and 1t is learned that
Senator Aldrich is exasperated 'bc-
yond measure Apart from the mcr-
its of MIR. Cannon's positive position
on financial legislation, his avowed
intention Of using the unlimited pow
or conferred upon the speaker by the
existing rules is regarded with amaze
ment. 1t is at least likely to fomcnt
the bad blood which already exists be-
tween the house and senate and which
led To severe structures being passed
upon Mr.. Cannon himself during the
special session Of the senate last March.
In some quarters the view Is held that
Mr.. Cannon's announcement will lead
to some modification Of the existing
rules, so that the power Of the speaker
shall be materially curtailod.
Senator Stewart Of Nevada spoke In
terestingly on the subject Of financial
Legislation when seen by your cores
pondcnt after the publication Of the
Cannon story. He said that there was
a financial panic ahead OF the United
States which could not be averted al
though in his judgment the. adoption
OF the Aldrich policy would postpone
the crisis for a time at least. The
question. said the senator, "is wheth-
er 1t is better to adopt the Cannon
policy. take our medicine now and
have done with it, or whetecr 1t would
be wiser to adopt the Aldrich policy
and postpone the climax, with danger
Of erecting a Johnstown dam which,
when the clOudburst does come, will
sweep half the tinaneiers of their feet
and prccipitate panic Of unparalleled
magnitude. When, under the Cleve-
land administration, silver WAS elimi-
mated from tho currency bases of the
country, there was a shortage Of cur
rcncy, and serious panic resulted.
Almost Immediately, however. nature
appeared to seek to reLair the damage
by yielding increased quantities Of
gold and soon there was an excess OF
currency. Then the ingenuity OF such
men as J. Picrpont Morgan and others
came to the rescue. They organized
every industry on trust basis, and
tioated stock until today there is m
excess Of securititics, undigestcd Sc
curitics as Mr.. Morgan calls them, on
the market, with no currency to take
them up. Now Mr.. Aldrich would
authorize the banks to deposit their
stocks and bonds as security and issue
more currency to buy up these undi-
gested securities" Mr.. Cannon says;
"No. Letthem squeeze the water out
Of their stocks and there will be cur
rency enough" That Is the Pituation
In nutshell"
President Roosevelt has gone to
Oyster Bay for the summer and every
cabinet officer has taken advantage OF
the 4th of July to slip out Of town.
Secretary Hay will probably spend q