The Montgomery advertiser., 1908-02-15
SEN. CLAY ON ALDRICH BILL Declares It Wrong and
 Vicious. ENLARGEs POWER OF BANKS Says Measure Was Drawn in Favor
 of Rich. Geergi.'s Junior senator Read Frons . speech of Calhoun Deiiverea on The FIeer of The senats
 Chamber.

Washington, Feb, 14--senator Clay of Georgia, in the Senate today. ana
 lyzied the Aldrich bill and declared l it was wrong and vicious and would give no relief to the South and Weats He contended that 1t simply enlarged
 the powers of the national banks anos
 that Congress was relinduishinE fho sovereign right to issue and circulate
 money. which it ought never to do' The plan of the minority in the senate for the government to issue $5eo, ,0o0 000 of treasury notes and to use them in paying the expenses of the RoyeFm- ment that they might find their way into all the channels of trade. was advocated by him. Mir. Clay said there are now fin circulation ea50.0o0,Do Of the treasury notes. not costing the government anything and performing all the functions of money. and thaE this amount could be easily increased $500, 100000 without in any way dts- turbing our finances. and could not possibly result in . deprecated cur rency.
 State bonds. city bonds. and naunf- cipal bonds of the South and West he contended. were now being held by Eastern capitalists. and that the South and Weat could not secure any addts tional circulation by making these bonds basis of circulation. as they
 
 declared that the class of railroad bonds mentioned in the Aldrich Dill applied solely to the railroads in the east, and the railroads in she South and West had never paid aividend8 as provided in the Aidrich bili. Tnn bill. he said was drawn In favor of the rich and powerful, enabling them t0 control the money issue. and 1t was nof in the interest of the American people. He declared he stood by the doctrine once advocated by John C. Calhoun, Thomas Benton and Andrew Jackson. that our money ought to be gold and silver or paper money issued Idea that additional treasury notes would depreelate because we dId n9t have the gold to redeem them.
 -t-sss 9frmim um ahe Reserve.
 sIf the Aidrich hill becomes iams said Mr. Clay land the EoveruinAnt guaranteed the redemption n gold oF the additional notes issued bg the na% tionai banks, would not this be ss great strain on the government reserve as treasury notes?"
 Senator Clay contended that sn6 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 think that an un- limited amount of paper money could be Issued. but said the Issue should De guarded and limited in amount to meet the needs and actual demands of the country. He criticised severely tna financial policy of the government m the past in making bonds and all eov- ernment obligations redeenaabae lr gold.
 But. said Senator Clay. if our paper issue should be carefully guard ed and limited in quantity and made legal Nender in the payment of debta possessing and enjoying all the func tions of money then 1t win not dos preciate in value. and will Dc as Eoo1 as gold and silver because ft will have back of it the entire resources Of khta great republican, of our agriculkurnf products. all of our banking capital all of our real estate and all Of our property of every class and kfnd--ju4k the same property that is now hack of ail the obligations of the Unftda
 ''Talk about Fiat money, saia the Senator, "all of the paper money ws have in circulation today, except fh@ gold certificates. is flat money to 1nrnA extent--your national bank note ta based upon the bonds of the UMateA States, and. while they are reaeemanl4 In gold. no one will contend that we have the gold to redeem them. They are good because the pledges of Che government are behind them, and they have been made mona by an act oe Congress and legal tender in the pay- ment of debts"
 Congress wee criticised by the Eenn- tor for allowing q surplus Of sae0.s O00,000 to accumulate in the treaaurv. If this money was not needed to pav the expenses of the government. ne said. 1t ought to have been left in 9he hands of the people
 DiaappFOves Policy.
 He disapproved the policy Of the government in allowing deposits to re- main in the banks without interest He did not blame the secretary of th6 treasury for placing this money in fhe national banks. as it was better there than in the treasury. but he confenaed that it would have been better had Inc money never been collected hv taxation. 4 we'll regulated governs nent. city or state. he said. never coi- ected from its citizens taxes that ix lid not need to pay the expenses Of he government
 Mir. Clay commended in the highest erms to the manly fight made bv Andrew ackson against the banks fs- iuing money. and read from speech Calhoun delivered on the floor of 4fa Senate, and read letter vrfften ht}