The Washington herald., 1907-12-20
FRIDAY. DECEMBER 20. 19O7.
Early financial LEGISLATION.

Senator Culberson has succeeded in
drawing from Mr.. Aldrich. chairman of
the Senate Finance Committee. a most
encouraging statement as TO the prospect
OF early financial legislation. Mr.. CuIber-
son urged the desirabnity of speedy ac-
ton. and was disposed TO be critical Of
the leisurely manner in which the Finance
Committee was going about its work. Mr..
Aldrich replied that the Committee on
Finance was engaged in an inquiry into
the operations of the Treasury and OF
the banks during the late financial crisis.
and that
The committee hopes to be able TO report 10
the Senate the facts OF every nature bearing upon
the financial crisis The committee hopes to be able
10 report legislation which IN IS opinion viii be
helpful whenever these crises shall occur in the fl-
ture, because experience IN this and all other coun-
ties shows that periods Of financial stringcncy do
constantly rccur at grcater or less intervals.
we may be able 20 do something to ameliorate
conditions and the Committee on Finance proposes
10 devote themselves 10 that task. I hope-and be
leye / assure the Sonatc-that very early after
the Senate reassembles following the holiday recess
The committee viii be ready TO report bin which
IN their Judgment viii relieve the situation and take
care Of similar situations in the future"
An administration organ asserts that
the legislation Senator Aldrich has in
mind is "A simple measure providing for
an emergency currency 10 be issued by
the national banks. and so heavily taxed
us 10 insure its issuance only in periods
OF considerable financial stringency and
it's retirement as soon as such periods
have passed" A measure Of this sort will
fall far short of what the country might
reasonably expect of Congress, but its
provisions are such as viii meet with
the least resistance in both Senate and
House, inasmuch as they do not alter the
main features OF our present currency
system. If it is good politics to accom-
plish as little as possible in the way of
legislation at the session prior to a Presi-
dental election. then il Is good politics
TO keep currency legislation down to the
bare necessities OF temporary relief But
is il not just as reasonable TO assume
that the dominant party would strengthen
its position if it were able to go before
the country with a complete solution OF
our financial troubles? What has become
Of the b0asted inherent capacity Of the
Republican party 10 grapple with diff
cult problems of craftsmanship that its
leaders should propose to put off any real
reform of the currency to some more con-
yenient day?
We are wholly in sympathy with Mr..
Cuiberson's view that the financial situa-
tion calls for speedy action by Congress
if the remedy lies within its field of ac-
ton Mr. Aldrich, indeed. intimates that
his proposed measure VIII relieve the ex-
listing situation. Notwithstanding the
steady Improvement that has taken place
in monetary conditions all over the coun-
try, there IS still pressing need of relief.
Treasury funds are tied up in the banks.
many Of which have not yet resumed cash
payments, at least not on ii normal basis.
Senator Tillman says there is little cur
rency to be had in portions Of the South
beyond clearinghouse certificates-a fact
which easily explains why the people of
that region are signing for greenbacks.
In view Of the actual conditions through
out the country, there is good reason for
asking why Congress could not have
passed so simple bill as Senator Aldrich
favors before the holiday recess. II is
TO be hoped effective action will not be
long delayed after the reassembling of
Congress.