Evening star., 1908-01-29
GOMPERS ON THE CURRENCY
ADDRESSES THE HOUSE BANK
ING coMMITTEE.
Not Prepared After Years of Study
to Advance q Solution Wholly
Satisfactory to Himself

Samuel Gompers president of the Amer
lean Federation Of Labor. was an i'm
promptu speaker today before the House
committee on banking and currency. at
hearing on the question of currency leg
islation. Mr.. Gompers prefaced his re-
marks by saying that he was not pre-
pared to discuss the features of the
finance problem nor to submit any solu-
ton.
II am free to admit he said, that
after very many years of study of the
subject Of money and its issuance. I have
not yet solved the problem to my own
satisfaction. I believe We must meet the
new conditions confronting us as a ma
ton. and that many old conceptions must
give way to new conditions: yet l cannot
escape the belief that relative provisions
in the Constitution ought Ia have a little
more weight in the determination o.. the
nations financial policies affecting the is
suance of money. To delegate that power
to private interests is something which, in
my Judgment. is not sustained by a proper
Interpretation of the constitutional pro-
vision that the government of the United
states is the duly constituted authority
for the issuing of money.
Privileges to the Banks.
force by which the banks arc permitted
to draw interest from the government on
government bonds which they put up as
security for bank note circulation. This
system" he said. affords the banks an
unwarranted privilege of making money.
The bank is entitled to interest on th,
bonds II buys. but it ought not to have
the privilege. then, Of issuing money on
the strength Of those bonds
Mr.. Gompers accepted the statement
by Representative Powers of Maine that
the profit concerned Is so minute that
the banks really cannot afford to take
out more bond circulation than
the law compels. but he clung to his view
OF the unfat.nesS and improperly of the
system. though concedinG the truth of the
statement that the compulsory purchase
OF bonds as circulation security is the
means by which the government funds
the national debt
Advice to Workingmen.
Answering Il question. Mr. Gompers
said: "One thing is certain. no blame can
be laid at the doors of the workingmen
of this country for the recent financial
panic. ] myself advised the workingmen
not to withdraw their savings from the
banks, but on the contrary to deposit
their hoardings in the banks. because
IefI lnelT money WOufQ De SaIor In the
banking institutions of the country than
in their homes or in the boxes Of safe de-
posit companies"
Mr. Gompers was asked whether the
working people of the country had suf-
fered much as result of the financial
disturbance. Yes he said. I'VE have
suffered greatly by the closing down OF
industrial plants and the reduction of
working forces
He was, however. unable to state the
percentage of unemployed as a result
of these conditions. He asserted that
the country was greatly helped in the
crisis by the firm attitude taken by
labor unions against wage reductions,
because yielding to reduction in times
of financial and industrial depression SIM
ply reduces the general power of con-
sumption. and increases rather than
lightenS the trouble