New-York tribune., 1907-11-28
HUGHES STRONG -DEPEW
n BIG FACTOR NOU.
Senator 1Lso GiUeS HIS TietrS on
Financial Situation.
Financial Situation


ton In the next Republican National Convention.
: In the course of extended conversation the
Senator said that the financial depression would he
of short duration. that money would be easy after
January L and that sooner later Congress would
have TO pass law giving the national banks the
right TO issue currency on assets up TO certain
percentage the additional currency to be taxed.
that its withdrawal would be natural in flush times
Governor Hughes is to be very strong
candidate for the Presidential nomination next
year. said the Senator Il have been fifty years in
active politics, having stumped the state for Ere
mont In 1856. and Hughes is the only Governor in
all that time who at the end of his first year. has
not been criticised by at the opposition press
At the present time he enjoys the distinction
OF having both tho Republican and Democratic
press OF the state with him 1t shows the strength
Of the Governor and his administration and at the
Same time the lessening of partisan loyalty on the
part OF the newspapers. OF course. tell
what will happen at the next national convention; !;
but it Is certain that Governor Hughes this time
is large factor IN Republican national politics
What do you hear IN talking with bankers about
currency needs?"
There is a consensus Of opinion that something
must be done at early day TO make our
rency system elastic. At the height OF the
present financial probably $30o.O0O.00O
withdrawn from circulation and locked up. There
about 100000 90 in the country; 10000 is
held by tho government 81 Oo10000oo is held in
serve by the banks and tho other s1.OO00Oo,O00 is
supposed to be floating. When you lock up
account of panic ssOOOoOOOO you seriously cripple
business all along the line.
The best way out Of IT, If Il practicable,
would be to establish national central bank. Tho
United States is the only great nation without
elastic currency. Great Britain Germany and
France all have their central national banks, with
an automatic ourrency-a currency so controlled
that in timeH OF need additional currency be
issued, TO be withdrawn later when the stress is
ended. II works admirably. II Is not feasible in
this country because OF the ghost OF Andrew Jack
son. Andrew Jackson wagod a successful campaign
tho issue OF repeating the central national bank
charter and not issuing another charter.
Tn the public imagination OF Srat day the man
ayers of that Central National Bank were the
predatory millionaires It is surprising fact that
that old prejudice against central bank exists to-
day. jackson to-day Is the greatest living political
force. and he's dead. at that I introduced bill
last year looking to more elastic currency. Only
five or six Senators were In favor OF it, But we've
got to 10 1t II going 10 get
finances In such condition to stave off panic.
II notice that the Senator's and Representatives
come on from the West. visit the White House. and
then talk 10 the newspaper man They all say
about the thing and that is that it's all
Wall Street-that Wall Street is at the bottom OF
the panic They do not stop to consider that New
York supplies annually tho money for moving the
crops. 1t takes about S2D0,0OOOo0 TO do this. The
gold we have been obtaining from Europe in the
four weeks is largely its way to the Western
states for the purpose OF moving the crops The
banks here have 20 supply it. and In doing so they
prove themselves to be the best kind OF friends
of the Western people Despite that fact, we are
held up as terrible examples OF chicanery and wick
edness-
Usually political unrest comes from bad crops
and hard times. The existing political unrest
comes from excessive prosperity. The railroads
last year had than they could do. They
would have made more money IL they had had
less tonnage. Wage earuers get about double what
they received twenty years ago Since 1926 pros
pertty has been unparalleled. But the result IL
anomalous
'I was talking last week with man worth
81. 100000. He said that ought to be allowed
to possess moro than SlooOo.on Anything moro
than this ought to be conhscated. He said that
81 10000 was not too much. The next day 1 was
talking with worth 100000. He said that
q man worth S10o0Oo.OOO ought to be taken out
and hanged TO the nearest lamppost- He stoutly
asserted that fortune of S0.0o0000 n
It is impossible 10 prevent the pioneer
geniuses-the who build railroads into
territories. the miners who develop rich mines
the engineers who develop water powers-fronl
obtaining large monetary reward. They sure to
become millionaires. while men OF common minds
obtain lesser rewards.
The only way to flag the operation OF this natu-
raj law is to stop everything. There Is a dsposi-
that very thing. The fellow lower down the
ladder wants tho fellow higher up stopped from
amassing substance and at the time
he himself is object OF envy on the part Of the
fellow below him
Whom will tha Democrats nominate next year?'
'Unquestionably Bryan Bryan is a genius. He
Is one OF the few men whose prestige has survived
a double defeat He has the peculiar quality OF hav
ing ready a remedy for every governmental and
nomic ILL., II makes little difference him that
the remedy is worthless. He to believe that
it VIII answer. and has hesitation in
ing the public of its adequacy"
What viii the big issue be next yesr?"
Probably the Democrats VIII demand a revision
of the tariff. They usually do, If they make
their demand too radical they will be beaten out
of sight on that, issue alone"
DO YOU favor a revision OF tho tarir?"
'Assuredly not. I believe in tarifr revision
commission. with power TO adjust palpabls defects
in the tariff system, but I am opposed to any
general tariff revision. The inconsderabe Ills
than the industrial revolution and stagnation that
would follow q general revision of the tariff
IT think most need currency legislation that
will enable the bauks automatically to take care
of currency needs BEFORE the national bank ex-
pertinent in JAckson's day the Suffolk Bank of
Boston, for forty had just such a currency /
and no lost dollar through its opera
tions. issued currency based OF its assets and
when the currency needed IT was forthcoming
II was withdrawn when the stress was over That /
system a success until taxed out of existence
The principle is involved In the successful
systems now in use in Great Britain France and
Germany. We will have come 20 it,
What about third term for Roosevelt?"
Senator Depew threw up both hands al this
Excuse mo from discussing the subject said
he. What said that line when came back
more abuse than anything ever said. am not |
running around looking for trouble"
SENATOR pCATT STARTS SlINpAy