The Washington herald., 1908-02-25
IN PERIODS
Senator Whyte Says They Are
Natural Financial Ills.
COUNTRY GOES ON A JAG"
Maryland senator Pithiiy Describes
Causes of Money Strinseney and
Opposes JII-considered Remedial
Measrres-AIdrIch Notes Useless to
the Southern banks.

That financial panics are bound TO recur
at stated periods under certain conditions,
just a waves of crime sweep over the
country and epidemics of disease visit
humanity. is the fatalistic doctrine of
Senator Whyte. of Maryland, as enuncl-
ated in a short but eloquent speech yes
terday on the floor of the Senate.
The Senator from Maryland. who IS also
the Oldest Senator In point of years, but
by no means the oldest so far as mental
vigor and physical health are concerned.
arose at the conclusion of a long address
by Senator Simmons. of North Carolina.
who attacked the selection Of railroad and
municipal bonds for use as a basis OF
emergency currency under the terms of
the AIdrich bill.
Senator Whyte said that he did not IN
tend 10 vote for any of the financial
measures which are now before the Sen
ate. and that he felt that II was due to
himself that he should state why he had
reached this decision Panics, the product
OF lack OF wisdom In the financial world
and OF overspeeulation. he said. could not
be prevented by legislation. so long as
the practice OF gambling in stocks and
necessities was allowed TO flourish.
Country Gets Intoxicated.
IF may use q somewhat vulgar ex-
pressieH.1 he said, the country, intoxi-
Gated by long period OF continued pros
perity, goes on monumental lag"
The reckoning must be paid by a IA.
ton. he said just as It, must be paid by
individuals. The nerves must be soothed
the damage repaired. and the processes
Of rehabilitation as carefully observed as
In the case Of man suffering from ar
attack OF the morning after
No measures intended only to meet par
ticulsr emergencies, the Senator argued
could avert the recurrence OF these at
tacks in the financial body. He advocated
the postponement OF all financial meas
Ires until the excitement OF the Presi-
Dental campaign had passed. and sug-
gested that then men fitted TO do ths
work be brought together. and, after ma
ture consideration. evolve new and
adequate currency system for the COun-
try he traced the causes and courses
Of the various panics IN this country in 2
short but clear chapter on financial
history.
Deep silence reigned In the chamber
during the Senator's short speech, broken
only by his deep and clear voice. and The
silence continued for some minutes after
he sat down. Apparently. his declaration
of faith had been as surprising in its ma
ture as II was unexpected.
Useless to Southern Banks.
Senator Simmons made a long argu,
meni. replete with facts and figures. e
show that the railroad and other bond.
which are proposed as the basis OF IN,
emergency currency are owned By
Northern and Eastern banks. few be
ing owned in the Middle West. TIL,
banks Of the South and the agriculture
communities OF the West. he said. no.
only could not take out the proposed
new money when needed owing to lacl
OF the prescribed bonds but would los,
money on every dollar that they ISSUED
Of such currency. because 10 make any
thing on loans made in such currencl
they would have 10 charge and 10 PEI
cent interest. and the laws In most OF TIL
! Southern States. and in some othe
States, fixed the legal rate OF interest a
Is per cent, prescribing heavy penalties
| for the exaction of higher rates Hon
est bankers in such States. he said, coul,
not take ont such currency at all.