The semi-weekly messenger., 1908-02-21
OPPOSED THE BILL.
Eoul,i prefer TO Curtah Power Oh
hanks Favored Law Requiring re
serves. 20 bsf Kept I'm Country BANKS
-Defounccd Stock Gambling
Tourhe.. t}pon the Recent Panic

Touches: Upon the Recent Panic
Washington, February 18.-Speaking |
ia the senate today, Mr.. Stone, OF
Missouri, declared that while the re-
cent financial panic was in part due to
a shortage of available currency, the
concentration OF the money at given
points had much to do with 1t. 1here
was, he said, too much of this money
in New York The Aldrich bill he re-
garded rs merely. makeshift in mees-
ing the needs of the country.
II am opposed he said, Ito the con-
ferring these great additional favors
and povars upon national banks. The
idea of a corporation usurping and
exercising the functions Of the sove-
reign has always been obnoxious 10
me- The power they can exercise upon
the political and Industrial well-belng
of the nation is enormous and although
il IS no doubt entirely true that the
rational banker is as patriotic rs the
average citizen, yet money and bus1-
mss with Inn as with other are sen
eraIly selfish and grasping things, and
dividens are often regarded as of more
Importance than patriotism.
He objected to giving the banks
power to regulate in any degree the
volume OF the peoples currency by
expanding OF contracting it as may
happen to suit their whims or their in
terests and while they now have that
power by this issue of bank notes the
opening bill would increase their pow
er along the same line. Property val
ues might be greatly affected by guch
expansion and contraction.
There is now" he said, "a COM
munity of interest between the banks
and a cooperation along the whole line
to accomplish given objects"
Mr.. Stone declared that he would
prefer to curtail the powers of the
banks, because the government is now
depended upon to give stability to the
currency. ~
Il shall vote Tor the emergency trea-
sury note instead of the emergency
bank note,' said Mr.. Stone. State
banks and trust companies should not,
he thought, be denied the same privi-
leges as the national banks.
Mr.. Stone favored law demanding
that reserves should be kept in the
country banks. If that had been done
he believed the intensity of the recent
panic would have been lessened.
He spok in favor of a guarantee
fund to insure the deposits in nation
al banks. He also wished to see banks
receiving government deposits requir-
ed to pay interest on them.
Referring to suggestion that the
treasury department should be con-
.trolled by board of directors rather
than by single secretary he said too
much power was placed in the hands
of an individual.
He denounced stock gambling and
declared that it took out of the mar
ket too much money that might be
available for lending for commercial
purposes.
The recent panic had come to re-
publican administration although that
party had always declared that it
brought prosperity upon the coun-
try"
Mr.. Stone referred to the silver is
sue, saying it's purpose had always
been misreptesented and that it had
been expected that the parity of all
money would be maintained under
system. 1--WE recognized the crying
necessity for additional money" he
said. f7*Ij
The contention that adequate in.
crease of the volume of money would
revive industries, enhance property
values and labor wages had been dem
onstrated by the history of the last
decade. The enormous gold supply had
done what it was expected gold and
silver would do.
But the republican party has fast
eped a taxing system under the oper-
alton of which grasping monopolies
are created to plunder the people," he
added.
II prophecy that many moons will
wane before they will again point to
democrats and sing in strident chorus
the 'Song of the Soup House.
''The full dinner pail will not be
again blazoned as an emblem of tri-
umph on tS- republican shield"
This panic, he said, would have
been worse mad the democrats imitat-
ed tie example of republicans in 1895
when they seemed bent upon making
things worse than those were. Banks,
then. he said, coerced their customers
as did corporations their employees
Now democrats have striTen to allay
rexcitement, to restore normal condi-
ton. When the country is again con-
trolled by the party of Jefferson and
Jackson he expected to see industry
revived.
In reply 60 question by Senator
Hopkins, of Illinois,. Mr.. Stone said
that in cases Of money panic he would
put the treasury emergency currency
he favored in circulation by deposit
ing it 10 national banks.
Mr. Bacon interrupting during the
portion OF the speech in which Mr..
Stone expressed his belief in a govern
ment guarantee of deposits in ma
tional baHFs- declared he would never
approve any system for such guaran-
tees. Senator Smoot suggested that
such g:la'sntee would increase wild
cat" bankers and he believed 1t would
result in, failures greatly in excess
of the present rate OF one-tenth of oEe
per cent of the banks.