The Hawaiian gazette., 1907-12-03
CONGRESS may
NOT HURRY MUCH
(Man Special to the Advertiser,

tMail Special to the Advertiser.)
WASHINGTON. D. c.. Nov 1o.-The
great hullabaloo for a financial psna-
cea. for some up-to-date. panic-proof
law from Congress while the frighten-
ed bankers and money magnates wait
ed at the main doors OF Senate and
House. has Quieted down. There was
never anything more silly. 1t started
when the converting OF Congress In
regular session was but four weeks
away and without any apparent reali-
zation that Congress could not be
brought together and organized at the
beginning OF biennial period in less
than four weeks. All the moro re-
markable was 1t that such a frenzied
demand should come from such a prac-
teal set OF men as bankers and finan-
ciers are supposed to be.
Something more has developed In the
last week or ten days as the result OF
this hullabaloo. It is that Congress is
not likely to tumble over itself to pass
financial legislat ton when II does come
together and. in fact. that there Is a
very large contingent OF Senators and
members who doubt the expediency OF
any currency legislation at ALL The
big men of Congress have hardly ar
rived in town YET but many men of
legislative influence are here or have
been here. They discuss financial leg
islation in very calm mood. Some Re-
publicans are squarely opposed to any
such action. In that category can be
mentioned Senator Cullom, OF Illinois.
and Senator Hepburn. Of Idaho. Sena-
tors like Mr.. long of Kansas think
there Is need of some action. but that
it must be enacted cautiously and only
after careful consideration as to what
the effect will be upon the country.
Some Democrats oppose 1.-THE fam
boyant and always picturesque and
emphatic Champ Clark. of Missouri.
and exc the scholarly John Sharp Will
liams. OF Mississippi. Senator-elect and
leader of the House of Rep
Other Republicans and
other Democrats, who have been here.
favor Congressional consideration of
the subject in the hope that step
can be taken beyond the Aldrich law
Of the last session of Congress. !
That law kept the country from go
ing to the. bowwows when Secretary
Cortelyou was in New York handing
the governments millions over to the
banks. 1t was regarded at the time
as a very simple law. because it pro-
vided only for the issue of gold GER.
.ificates in the denominations OF so.
an increase from 5000. 900
/ month to something like $4,000. 900
, month OF the amount of National
,ank notes that could be retired. and
permitted the Secretary of the Treas
Try in his discretion to deposit the re-
'eipts from customs in National banks.
rhe lay mind would not readily rec
'gnize the Importance of those items. |
Tut Secretary Cortelyou is authority
or the statement that the provisions
Il the law were OF inestimable value |
o him in his efforts to stave OF the |
'anic.
One thing has been brought out |
'retty strongly as the result Of the |
Normal discussions which have been |
,oing on, ever since the sensation |
bout an extra session of Congress !
Tas sprung. That is a desire for some! |
IL IL CdA NC lOuuu
icable, TO give depositors more con-
dence in banks. The bank run is a
oncomitant of panics. 1t is also an
ggravator. A great number OF de-
ositors become weak kneed as soon
5 money becomes tight. They want
, have theirs in hand or where they
an put their hands upon 1t, whether
be in old stove pipes or in the old
lan's stocking. 1t has been suggested
iany times that the government, by
deposits in National
{ depositors. Then, it is claimed.
anics could come and panics could go
ut the National bank depositors would
o on as always and would not line
D in front OF the teller's window.
The argument is made in opposition
lat the government is undertaking a
g task when it guarantees National
ank, deposits that will amount to
llions. 1t would make the banks
SIS cautious and would saddle upon >
Ie government many debts where ,
inks failed and were unable to set ,
2 with depOsitors at 100 cents on the
,IIar. But it Is proposed to set apart
fund by imposing a small tax upon :
e National banks, from which the I
'vernment could recoup itself for j
sses. r
Another plan is to inaugurate postal a
wings banks, to which timid de- T
sitors could go in times of stress c
ley would be OF little help to de- =
sitors who keep large bank accounts; Y
ey would not help the man in New II
,rk who had 5000, coo in ready cash F
Itch he withdrew from bank and
L in safety deposit box so that he a
uld have the money any moment he a
Inted il. But through the postal h
wings banks. the National banks n
1Id be provided with a steady "
cam Of currency which now is idle s,
boarded and which would be pour
, into the channels OF trade to re-
We any money strfngency.
I'll r-e.i