The semi-weekly messenger., 1908-02-18
MR.CLAY CR|T|C|SES
AIdTich Currency Bill in Sc
VGI5 Terms
Tie Georgia Senator Contended That
it Simply Enlarged the Powers OF
the National BaIks-Senators Lodge
and Fciicr Give Their Views Briefly


and rc.icr Give Their Views Briefly
Washington, Feb. 1.-THE senate
today gave attention to speech on
the Aldrich currency bill by Senator
Clay. of Georgia. Mr.. Clays declara-
tions in favor of the issuance Of paper
money by the government provoked
controversy between him and repub-
lican senators. Senator'S Lodge and
Teller both gave their views briefly
on the policy of issuing paper money
by the government.
Senator Clay reviewed the banking
system of the country and carefully
analyZed the plan under consideration
for the issuing of emergency currency.
Senator Clay declared the Aldricn
bill was WIong and vicious, and would
give no relief to the south and west.
He contended that it simply enlarged
the powers of the national banks, and
that congress was relinquishing the
sovereign right to issue and circulate
money which it ought never to do.
The plant of the minority in the sem
ate for the government to issue $780,
one 500 Of treasury notes, and to use
them in paying The expenses Of the
government that they might find their
was into all the channels of trade
was advocated by him.
Mr. Clay said there are now in cir
cUIatlon $3.50, ,Go.0O of treasury notes,
not costing Che government anything
and performing all the functions oe
money and that this amount could be
easily increased $500, 100000 without in
anyway disturbing our finances.
State bonds, cit: bonds and muni-
cipal bonds CT the south and west,
he cOntended We're now being held by
eastern caDiial'st:, and that the south
and east could not secure any addi-
tional circulation by making these
bonds a basis of circulation, as they
had already been sold in the east. He
declared that the class Of railroad
bonds mentioned IN the Aldrich bill
applied solely to the railroads of the
east, and tnat the railroads of the
south and west had never paid divi-
denGs as ~ mOvided i'll the Aldrich bill.
The biii he said, was drawn n favor
of the rich and powerful, enabling
them to control the money Issues, and
it was not in the interests of the Am
eriean 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 and paper
money issued by the government. He
ridiculed the idea that additional trea-
sury notes would depreciate because
We did not have the gold to redeem
them.
IF the .Aldrich bill becomes law"
said Mr. Clay, "the government guar
antees the redemption in gold Of the
additional notes issued by the ma
tional banks. Would not this be as
great a strain in golc reserve as trea-
Sury notes?"
Senator Clay contended that the peo-
pie prefer paper money and that there
was no raid On the treasury now to
have the paper money redeemed in
gold.
He did not maintain that an unlim-
tied amount of paper money could be
issued, but said the issue should be
guarded and limited in amount to
meet the needs and actual demands
of the country. He criticised severely
the financial policy Of the government
in the past in making bonds and all
of government obligations redeemable
in gold.
But" said Senator Clay, ''if Our
paper issue should be carefully guard
ed and limited in quantity and made
a legal tender in the payments Of the
debts, possessing and enjoying all the
functions of money, then it will not
depreciate in value, and will be as
good as gold and silver because it will
have back OF it the entire resources
Of this great republican, of our agri-
cultural products, all Of our banking
capital, all OF our real estate, and all
of our property of every CLASS and
kiud-just the same property that is
now back of all the obligations of the
United States"
Talk about fiat money" said the
senator, "all Of the paper money we
nave in circulation today, except the
gold certificates, is fiat money to a
large eXtent-your national bank note
is based upon the bonds of the Unit
ed States, and, while they are redeem
able in gold, no one will contend that
we have the gold to redeem them.
they are good because the pledges OF
the government are behind them, and
they have been made money by an
act of congrss and legal tender in the
payment of debts"
Senator Clay said that it would be a
sad day for this country when congress
should absolutely surrender the sove-
reign right to regulate the circulation
medium and leave it to individuals
and corporations. Then he said the
country would gradually be owned
by the banking associations.
Congress was criticised by him for
allowing surplus of 100000, 900 to &C
cumulate in the treasury If this mon
ey was not needed to pay tne expenses
of the government, he said it ought
to have been left in the hands of the |
people. A well regulated government,
city or state, he said, never collected
from it's citizens taxes that it did
not need to pay the expenditures Of !
the government.
Mr.. Clay commended in the highest
terms the manly fight made by Andrew