The Washington herald., 1908-02-29
Opposition 10 the Aldrich Bill

When Senator Aldrich. in January.
brought forward the currency bill bear
ing his name. he could hardly have an
ticipated the strong opposition that meas
ure has encountered. On the subsistence
Of the financial crisis there arose a wide
spread demand for legislation that would
permit rapid expansion OF the currency
supply in an emergency. and so mitigate
or avert the money stringency that an
nually strains the resources of the banks
and the Treasury. exciting apprehension
in the chief money centers In response
10 this demand. the Senate Finance Com
mittee prepared bill along what were
thought to be conservative lines. No Sc
rious modification OF the national banking
system was proposed. nor was any funda-
mental change in our monetary system
contemplated. The bin provided simply
for an additional issue Of bank notes Sc
cured by government and other bonds. in
the same way that bank notes are now
issued. the amount OF the issue and the
necessity for it to be determined by the
Treasury.
Senator Aldrich now finds that his
measure is warmly antagonized within
and without the Republican party. by
three factions-those who oppose a bond
currency on principle and favor an asset
currency, those who. though not opposed
TO the use of bonds as security. want the
government to loan greenbacks to the
banks. and those who are convinced that
the Aldrich bill would chiefly benefit
bankers and Wall street spectators and
would afford no relief to the business
community. OF these factions. the last
Is by far the most threatening. II repre-
sents public opinion so universal and
so ctively exploited that the New York
Tribune has felt impelled TO give warning
10 Republican leaders in Congress that it
would be dangerous TO ignore Il. The Tri-
bune finds that the chief Republican jour
nails of the country East and West, are
opposing the Aldrich bill on the ground
that it would help only bond spectators
and Wall street banks and operators %
This opinion says the Tribune. 1T will
be exceedingly difficult 10 remove from the
public mind" and IT asks: How will
the Republican party enter the campaign
with this bill passed and meet the charge
that il sacrificed the interests of business
in the interior to serve those Of Wall
street,"
on the other hand, how much better on
would the Republican party be if it went
into The campaign with record OF moth
ing done TO remedy the deficiencies or cur
bank note currency? Would Il be
strengthened by the passage OF a bank
asset currency bill. such as thar intro
duced by Mr.. Fowler. which is reported
to be gaining some headway among the
more thoughtful members of Congress? ?
The more courageous and statesmanlike
course would be to adopt a comprehensive
currency measure that would settle the
currency question for years to come. if
II met with the approval of the people.
Some day the question Of government cur
rency against bank asset currency Will
have 10 be fought out and determined.
We are now On the middle ground OF a
bond currency, but the new greenbackism
is force that must be reckoned with.
and it will have none OF an asset cur
rency.
The Republican party must oppose the
revival Of greenbackism. either an asset
currency system or such an addition to
the present bank note issue as is pro-
vided by the Aldrieh bill. There are seri-