The Birmingham age-herald., 1907-11-19
Congressman Gillespie Ta'ks on
 Financial Matters
GOLO BASIS WITHOUT GOLD
Texan Declares That the Country Should Not Be SaddIed With Any More Debt for Relief
 of the Banks.

Washington, November 1S.-(Special) J. In the opinion of Representative Gillespie of Texas, who will succeed himself on the banking and currency committee of the new Congress- the action of the ad- ministration in adding $50. .oooooo to the interest-bearing debt of the country is unjustihable.
 During the last two or three years" said the Texas congressman tonight, "the people have been overtaxed by s2SO,oOO, 0O0. Certain banks have demanded that this sum be turned over to them without interest, promising, of course. to pay it back upon demand. The demand is not made upon the banks for this money, or if it is they have voluntarily placed them selves in a position where they can't re- spond. Now the people are saddled with a bonded debt of $50 100000 more for rot less than 10 years; and in addition the government needs money for ordinary eX- penses, and is induced to issue per cent certificates of indebtedness to the probable sum of $l0O, 900 for one year.
 Milk In the Cocoanut.
 "The underlying basic trouble with the whole situation is the attempt to go upon a gold basis without the gold. The treas ury is at the mercy of any strong com- bination in control of the gold supply The President says the present gold sup ply Is $904 100000. He did not state, how over, that fully four-fifths of this sum was represented by outstanding gold cer- tihcates, not one dollar of which can be touched except to redeem these certifi- cates, which are scattered all over the world, and treated as gold by all coun- tries.
 'There is no gold with, which to redeem $500 900 in silver. nor the s6ta0OO, 600 na- tionaI bank notes which the banks cannot now redeem, sc the government must, under the law, redeem them in lawful money and in turn this lawful money must be redeemed in gold The state ment that the gold supply has increased is true, but the gold demand has in- creased faster.
 Ut is no use to cry confidence. Con- fldence cannot overthrow mathematics. The real trouble is the lack of gold. This adds to the demand without adding to the supply. The latest action of the adminis- tration only postpones for a short while the day of final reckoning.
 Tariff Is the Cause.
 "The truth is that our present tariff system is largely responsible for our financial condition,' concluded MT. Gill; lespie. Tt has accumulated such a large surplus in the treasury that 1t has at tracted every interest which sees in 1t d chance to profit. The banks being the strongest organization have had the ad- vantage of other interests. They get the surplus, and $1 of good money runs out $l in credit. The result is speculation, ras- cality, exposure and loss of confidence.
 The tariff should place in the treas ury only a safe, working balance, suffi- cient only to meet the needs of a govern ment economically administered. One of these days we will have to get back to this. As for finacial legislation this winter-lf there is any--it ought to be approached from a standpoint aside from the present panic
 The Currency Bill.
 Diligent inquiry among republican con- gressional leaders has failed to disclose the authority for the Presidents state ment that a currency bill is being con- sidered which will meet, in permanent fashion. the needs of the financial situ- ation. The basis for the Presidents hope that such a measure can be passed at an early date also remains undiscovered.
 The greatest difficulty the Senate finance and House banking and currency committees have had to contend against on the question of financial legislation has been the inability of the bankers of the country to get together upon any plan to prevent such financial stringencies as at present exists. Naturally with the bankers of the country divided this con- dltion has been reflected in the commit tee membership to an even greater de- gree There Is, of course. no prospect that a. unanimous report can come from either committee.
 The plans are to hold hearings of the House committee as soon as Congress convenes and report a bill early in Janu- ary. if possible. Speaker Cannon is ex- pected here tomorrow or Wednesday, and the President will take up the matter with him at once, it being the most im- portant piece of legislation now desired.
 What action the Senate will take on the financial bill is uncertain, though it can be depended upon that the upper branch of Congress will be in no hurry to pass a bill without extensive debate onn he subject. w. D.
 M