The Brandon news. (Brandon, Miss.) 1892-1961, 1907-11-28
KNOCKS AND HE
KNOCKS HARD
HOUSE CHAIRMAN DISGUSTEn
WITH ADMINISTRATION.
In ADDING $16O,OOOOO DEBT
Asserts that American Bankers Had
Successfully Passed Financial Girls
is By Enormous Gold Importations.
When Government Heads Blund-
cred.

mlttee on banking and currency, gave
out the following statement regarding
the issue of Panama canal bonds anC
the treasury certificates:
Personally said Mr.. Fowler
and from a party standpoint it is
of course unpleasant for me to disap-
prove the action of the republican adj
ministration, but my study of the
questions involved, and my duty e
the public, compel me to set forth the
reasons why the action of the admin
lstration is surprisingly extraordin-
airy, unwarranted and most unfor-
tunate.
ION Friday, November Is, the
crisis of the present currency panic
had been reached and successfully
passed through the splendid achieve
ments of American bankers in bring
ing gold to this country to the extent
of about $75,000,O0O at a. very great
cost to themselves for it was pur-
chased generally at a premium of
about 2 per cent, and also by respond
ing to the business necessities of the
various localities in issuing clearing
house certificates and cashiers checks
IN denominations of 81, So, So and
$40, as we'll as the larger denomina-
tions.
AT this juncture, when the fnan-
clal and currency situation was al
ready well IN hand, the administra-
ton interviewed against the opinion Of
the best judges of the situation.
Therefore,, primarily the effect of the
government action must be a most
disturbing factor, although the bank
ers OF the country may prevent any
serious consequence at the moment.
In the second place, the govern
ment did not need the money as it
has $24O, 100000 to it's credit, which it
has taken from the people through
taxation. Therefore, the interest bear
ing debt Of the government should not
have been increased $150,OOO,OOO AMI
especially when such an increase Of
debt Is clearly violation Of the in
tent and purpose of the law; and in
the third place, because the action of
the treasury is "a most violent viola
ton of economic law for which the
people must yet pay the penalty.
First, let us deal with the $50,000,-
600 Of 2 per cent Panama bonds,
which are to be used as the basis Of
additional bank notes circulation. The
government, as stated, has $24O,OOO,-
600 IN the treasury, to its credit and,
therefore, it does not need the pro-
ceeds, to pay for the construction Of
the Panama canal or to meet the cur
rent expenditures of the government.
And IT it did, it could not take any
part of the proceeds Of these sales
for the purpose as the banks could
not afford to exchange their reserve
money for bank notes.
And, further, instead of there be-
Ing a margin of gain there must be
necessarily an actual loss of capital
IN the transaction.
Again, by this hypodermic injec-
ton Of another $50,OO0,0OO Of fixed
immobile currency unto our sodden
mass of bond secured bank notes cir
culation which never responds TO the
varying conditions Of commerce be-
cause not directly related to the bust
ness of the country, we have made a
bad condition worse. Think Of push
ing further a principle of currency
expansion which, although our bust
ness was constantly expanding from
1882 to 1891 fell from $685., 100000 in
1882 to $125,OOO,0OO in 1891. Why 2
Why? Simply because it was unpro-
fitahle to hold the bonds for that
purpose; aye, a principle which has
proved its utter lack of adoption to
cur needs since 1891, by showing an
actual contraction during the fall IF
many Of the intervening years, and
an actual expansion during the spring
months of many others.
"Can't the American people OBJ
serve and learn anything from exper-
fence IN finance and currency, as they
always do in other matters, especially
such violent experiences as we have
been passing through during the last
thirty days9
Again-we shall find when the
reaction comes and the changed con-
dition is reflected In our reserves be-
ginning s,sout the 18th Of January, il
not earlier, and increasing rapidly
Senator Foraker was formally in
g. IL en.r kn