Condon globe. (Condon, Gilliam Co., Or.) 189?-1919, 1908-02-14
Replies IN FOrclbls Manner to
Critics Of Measure on Cur
rency Reform.
REVIEWS THE PANIC OF
1897 IN ABLE MANNER.
Measure Provides for Relief in Time
Of Financial Stress by Allowing
National Banks 70 Issue Emergen.
cy Currency ON Certain Approved
Securities, Guaranteed by the Cow
ernment--Atiracts Interest Because
Of Likelihood Of Passage Over
Large Number Of Similar Measures.

Washington. Feb. i0.--The reply Of
Senator Aldrich OF Rhode Island 70
critics OF his banking and currency
bill, Introduced by him as a measure
to provide relief in time Of financial
stress by allowing the national banks
10 issue emergency currency on cer-
tain approved securities and guaran-
teed blythe government, was made to-
day.
II excited widespread interest be-
cause the bill is supposed to have
the best opportunity OF passing. OF the
number OF bills offered this session.
Many financial critics declare that the
bin affords no substantial relief. Al
drich reviews the situation in an able
style.
Senator Aldrich spoke In the SEN
ate today In defense and explanation
Of his banking bill. He reviewed the
panic OF 1908 It was not currency
panic. In the true sense OF the word,
for the United States currency. In
character. is beyond question.
The amount Of money in circulation
at that time in the hands OF the peo-
Pile outside OF the banks and treasury
was sI9.3e per capita. much larger
per capita than was held by the peo-
pie of any other commercial country
in the world. except France, where
conditions are entirely different.
"Under ordinary conditions the
volume OF currency could be fairly
criticised as excessive and certainly
adequate TO meet the normal de-
mands. But no provision for an
emergency which occurs more or less
frequently In every country and which
we now see must be provided for.
'It is impossible to estimate the
losses inflicted by the suspension Of
payment by the banks In the recent
disturbance. There was financial EN-.
Ibarrassment on every hand. Thousands
were thrown out OF employment and
the wages OF employees were reduced
"of the five expedients adopted t
meet the emergency the use Of clear
| ing house certificates was unqustion'
ably the most effective.
"This was the eighth time theil
use has been beneficial, at times pre-.
venting serious disaster, but they re,
suited this time in such dlsarrange'
ment OF the exchanges as to make !
doubtful whether the disadvantages
were not greater than the benefits.
"The great losses the people of th'
country suffered through the partia
breakdown of our credit system ant
which the abnormal increase in vol
ume OF money legal and illegal. fail
ed TO avert. should lead congress Sc
riously to consider whether 1t is pos
sIble that legislation will prevent
recurrence.
If the panic should be repeated
the methods OF relief used in 1s0'
should not be available. the treasur,
would not be in condition to come t
the relief, It would be impossible 4
increase the national bank notes OF
states bonds and may not be able t
command the large important ones
the gold suspension Of bank payment
with the resultant strain on the credi
OF the country would not be tolerate'
again.
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ment of central bank OF issue.
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