Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-11-20
REP. SIMMS OF TENNESSEE
HE GIVES HIS VIEWS ON THE
FINANCIAL SITUATION.
Opposed to System Of Banking That
Permits Condition to Arise That
Requires Government Aid.

Aside from the question of public ap-
prevail or disapproval of the action of
President Roosevelt and Secretary of the
Treasury Cortelyou in providing for TIE
issuance of SJ0.O0O.OOO in per cent Pan
anna canal bonds and $10O.0O0 eco in per
cent interest-bearing certificates, 1t is
generally admitted that the crucial flnan-
cial conditions of this fall and the drastic
remedial measures necessary to stem the
tide of panic will have immediate and
great effect on Congress and result in cor
receive legislation at the coming session.
That is the view of Representative
Simms of Tennessee, leading democratic
member of the House district committee
and a student of banking and finance.
In an interview with a Star reporter to-
day Mr. Simms discussed at some length
the ANNOUNCED bond and certificate issue
and its. probable bearing upon present
conditions.
Mr.. Simms' Views.
Without criticising the particular issue
of S5OO0O,OOO in bonds by the Secretary
of the Treasury and the issuance as we'll
of interest-bearing certificates said Mr..
Simms, Il am opposed to system of
banking that permits a condition to arise
either from natural causes or through
manipulation, which is seemingly so acute
as to justify so drastic measure as the
issuing of S5O,OOO000 of bonds to build
the Panama canal carrying with it
liability OF S30,0O0,000 of interest, where
there is already a surplus of $4,000, OO0-
which is increasing daily-out of which
any expenditure on canal account can
be met. And the same comment applies
as well to the issuance of 100000 900 in
per cent Understanding certificates,
authorized for time of war to meet
actual war emergencies, and which is
suace was not even resorted to dur
ing the war for which the provision was
made.
Il am" continued Mr.. Simms in
tensely in favor of divorcing the Urea sury
OF the United States from the oanKing
business and cutting it off from any con-
nection with the national banks of the
country. so that pressure by the banks
cannot-as is The case at present-be
brought TO upon the Treasury for
their relief to the extent of increas-
ing the interest bearing debt of the
United States, particularly when it is
admitted that present conditions have
been brought about by the methods popu-
larry known high finance and which,
in measure at least, have been sup
ported and countenanced by the national
banks or those in control of them.
Cause of Lack of Confidence.
the part of the public in those having
control of large financial institutions it
is the direct result of an exposure of their
methods. brought about by the activity of
the President of the United States. l re-
greet. however, that this exposure has SO
alarmed the people of the country that
the President feels justified in trying to
head OF results that We're natural, fol-
lowing the exposures that have been
made. ~
But even the measure of relief adouted
promises nothing more than temporary
tfnues such conditions may at any time
arise. either from actual or artificial
causes l think comprehensive legislation
should be had by which the Treasury of
the United, States would not be called
upon to indirectly bolster up the failure
or attempted hotation schemes by deposit
ing the peoples money in the banks be-
mind such measures and then, rather than
withdraw 1t to devote 1t to the purposes
for which it was collected be driven to
the issuing of bonds, interest-bearine
certificates. and SO forth 3
The complaint Is made that the people
are hoardfng their money, when the. fact
rs that the banks are boarding 1t for
tnen1, and VIII not pay 1t out on the de-
mand OF depositors, even for the most
iegitimate business purposes. Even the
city OF Nashville. Tenn. has resorted TO
the issuance of clearing house certificates
in denominations as low as one dollar
which are being used for the payment of
wages and other accounts. owing to the
Iact that banks in reserve cities will no,
snip currency upon the demand of the
banks" VI INC