The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-11-03
GILLESPIE AGAIN
AFTER PRESIDENT
Icxan Congressman Criticizes
Plan to Increase Bank
Circulation.
N ii MORE RESERVE MONEY
r,ines.Dlsphtch Bnrcnn,
Munsey Builiiug.
washlnston. Q. G. Noy 2.

' III
washington u. c.. Nov 2
fhfier,rSsen,ative Gillespie. OF Texas.
ssitp * Z. member of the House Com
E5tittee On Ranking and Currency. again
ls,es after the administration and It's
ituauelsi policy with ung!oyed hands.
,fbis time he attempts TO show the alb
I,,rdity of the proposition of Comp
ifDIier Ridgely that national banks M
( tscase the circulation by taking down
tile government bonds which they nave
Iltt up 10 secure United states de-
lissits. ana substituting therefor ac-
,ssptable securities. including munici-
nal bonds and then in turn pledging
ids government bonds thGs released
( Tor AN Increase In bank rctc circula
ton.
II see 1t is claimed said Mr.. Giles
pic to-day. that an Increase In the
bank note circulation TO the amount OF
$50 600 900 can be secured III this way
"1t seems to me that this VIII only
Increase the difficulties of the sttua-
ton for the Treasury and will afford
no relief to the people. What Is
needed is more reserve money, not
more credit money, and the increase in
hank notes Will only increase the ratio
Of credit money as compared with re-
serve money. "A run upon the Treasury
for gold is the danger that now men
aces us and an Increase IN bank
notes means an increased strain upon
the gold in the Treasury.
Not Enough Gold Yet.
I'VE now have redeemable in gold,
not according to law. but according to
tile policy of the Treasury Depart
lnent, some s5oo,000.0OO of silver. and
according 10 law there is about the
same amount of bank notes redeemable
in gold, with no power to hold n
single dollar there to meet it.
I'VE have only sl5O.ooo00o in gold in
the treasury to meet the outstanding
treasury notes of two and one-half
times that amount. And furthermore,
this will have also to back UP the
silver according TO the present fiscal
policy.
I'VE have a much boosted gold stand
ard policy without gold to carry it out.
and the only recourse in The event of
a run upon the reserve would be to
fall back on the people through bond
issue. The administration. believe.
would have been compelled to issue
bonds long ago to carry out its gold
standard policy had 1t not turned the
treasury over to Wall Street 1t would |
have been in exactly the same position
Cleveland found his administration I'M
1898.
This is practically the admission OF
Senator Lodge, in speeches he is max
ing in his State, when he says that /
the only way panic has been averted
was by the use of the immense Treas /
ury surplus in saving Wall Street.
Plan VIII Ala hut Few.
This plan will aid and be of im-
mense advantage to very few peo- /
pie who do not need 1t. Take n case
exactly in point. New York City is |
compelled to issue bonds for $4,000 |
O00 or more at the high rate of per
cent. Morgan x Co. have arranged |
To- take over that amount and have I
an option on s20.0OO.oOo additional IL [
1t is ISSUED. Suppose he gets them. and [
comes to the Treasury and takes down
IDS United States bonds in similar NUM- |
bers with them.
HE can then pledge his United States |!
bends to secure an equal amount OF 1
new babnk note currency. This is In
turn he can use to pay for his New I
York City bonds, and b ythis manipu-
!aton can turn the whole trick without,I'
putting up a cent of actual money. 1t
will be highly profitable venture for
him. as he will get his per cent. in
.terest and the benefit of the enhance Ii