Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1908-02-15
IN THE SENATE.

gave its attention today to a speech
| on TIE Aldrich currency bill! by Sena-
| tor Clay Of Ga. Mr. CIays declar;i-
| ton in favor Of the issuance OF paper
| money by the government provoked
| controversy between him and Re-
publican senators. Senators Lodge and
| Teller both gave their views briefly
| upon such Il policy.
Senator Clay analysed the Aldrich
bill and declared it was wrong and vi
cious. ard would give no relief TO the
South and West. He contended that it
simply enlarged the powers of the ma
tiOnal banks and that Congress was
| reiiEquishing the sovereign right to
issue and circulate money, which it
ought never to do. He advocated the
plan of the minority in the Senate for
the government to issue $780, goo of
treasury notes, and to use them in pay
ing the expenses of the government
that they might find their way into
all the channels of trade.
Mr.. Clay said there are now in cir
Cula ton $3.50. 100000 of treasury notes
not costing the government anything
and performing all the functions of
money, and that this amount could be
easily increased to $500, 900, 900 without
disturbing our finances, and could
not possibly result in a deprecia ted
currency.
State bonds. city bonds and munich
pal bonds Of the South and West could
not secure any additional circulation
by making these bonds basis of this
circulation as they had already been
,.r,I1 ti,n
class of railroad bonds mentioned in
the .Aldrich bill applied solely to the
railroads in the East and that the rail-
roads in the South and West had new
er paid dividends as provided in the
AldricE bill. The bill. he said was
drawn in favor Of the rich and pow
crful. He declared he stood by the doe
triiie once advocated by John c. Cal
houn. Thomas Benton and Andrew
jackson tlal our money ought to be
gold and silver ana paper money is
suct, by the government
Senator Clay contended that the
people prefer paper money and that
there was no raid on the treasury now
to have the paper money redeemed in
gold. He did not maintain that an I'M
limited amount of paper money could
be issued but said the issue should be
guarded and limited in amount to
meet the actual demands of the cOun-
try. The limited power issue. he said.
would not depreciate i'll value and
would be as good as gold and silver
because it would have back of it the
entire resources of the country.
Senator Clay said that it would be
sad day for this country when Con-
greSs should absolutely surrender the
sovereign right to regulate the cir
cuating medium and leave it to in
dividuals and corporations. Then. he
said. the country would gradually b"
owned by the banking associations.
He disapproved the policy of the
government in allowing deposits t.
remain in the banks without inter-
est
Mr.. Clay commended the fight made
by Andrew Jackson against the banks
issuing money and read from
speech Calhoun delivered on the floor
of the Senate and read a letter written
by Thomas f. Watson giving his views
on money.
During his speech Mr.. Clay became
involved in a heated controversy with
members on the Republican side.
| Senator Aldrich suggested that Mr..
Clay's argument was one he had not
heard for Is or 20 years. although it
was very familiar before that time.
| Does the senator" he asked, be
! lieve that government notes should pc
| issued in place of other forms Of cur
rency?"
Il believe responded Mr. Clay,
| that the money of the United States
ought to be gold and silver coin and
paper money issued by the government
redeemable by the government in
! coin
| Senator Lodge recalled that the gold
| in the possession of the government is
| equal to two-thirds of the paper of all
kinds in circulation whereas in Eng
| land the gold reserve is but one third
/ of the circulating medium. So far as
i he was concerned, he did not approve
|, the plan of having the govern lent is.
sue am money except gold and silver
He would be glad to have all paper
money withdrawn. He did not want
to see the government in the banking
I business He preferred to see all paper
| money issued by the banks against
gold reserve which ne thought was 8
sound business way. He did not like
bond secured currency, az such q
course gave a fancy price to tie bonds
instead OF leaving them purely for thu
| purpose of Investment.
| Il prefer TO have 4 central bank 81
issue as they have in other great ma
TONS said Mr.. Lodge, who added:
IT hone this pOyernnepf Will never
again go into the business Of print
ing money
Senator Teller said that the issuing
| Of money is not banking business.
1T is the exercise Of a sovereign
1 power" he said Where would he
have been today if we had not slipped