The semi-weekly messenger., 1908-02-28

! Said Banks Deserved No Credit
| For Import of Gold.
Warrington, February 26.-After
passing the penal code bill the sem
ate today, on motion of Senator AL
| drich advanced the emergency cur
rency bill to the position of unfin-
ished business, giving it unquestion-
| ed right of way.
Speeches on the currency bill were
made today by Senators Culberson,
| democrat, Texas, and Nelson, republi
can, Minnesota.
MIR. Culberson outlined a number
Of amendments he will submit to the
| Bill; one providing that after January
= 1909, every national bank shall
Keep on hand in it's own vaults the
| .aserve required by law and reDeai-
ed by permission to keep a part of the
reserve In other national Banks; also
making it unlawful to deposit puplic
money tn any national l,ank to he
used directly or Indirect! by tho
banks in speculative dealings in
stocks and bonds are to supply funds
to any operator on the stock ex-
change and making it unlawful for
national banks to make a demauo
or other national banks for loans or
give credit ON their books to oper-
ators on any stock exchange 70 be
used in dealings on the exchange.
Mr. Culbersor then denounced the
c.rfency bill, Rhich lie said would
give additional power to those whose
ma achinations and ldwlescness sup
Ipcrf and create such nn;ncial distur-
bances'' He contauded that the nil
will make a market for securities
which was what the "financieTs"
iwynt-
L Whatever the cause o1 the finaa-
c7al crash may be-" he added, 1t
was fnexcusable and unwarranted by
co oEditfGus and in some of its phases
were criminal and infamous"
/ Conteading that there was no iEs
dustriaI cause for the panic, lie cited
statistics extensively to bear out his
contention When the out OF town
BANKS weye calling fsr their money
rfronr the New York reserve banks.
Ehe said $251 100000 was loaned out
Ron. demand on notes on Stoc2,S and
fbonds.
what was needed, he continued >
was not more currency, but honest
and legitimate banking, unassociate6
-
Mr. CuIbersrn declared tllGt tie mon
ely powsr has always dominated leg
islation, roM the packing o. the
Supreme court of the United States
| in the legal tender casa down to the
law passed last year which gave the
national banks without interest the
use of $3.50, 0,e00,00G OF public
msney.
Senator Nelson's speesh WAS an ar
| gument IN support of his amendment
providing for the guarantee OF de-
posits. i'm national banks
Declaring that the trouble with tbs
| country during the recent currency
exIgency was not caused by lack
| out by difficulty of keeping it in cir
culation, Mr. Nelson analyZed the
banking conditions last fall and drew
the inference that the crisis original
ed fn the east and not in the west
Saving that the banks had taken a
great deal of credit for the importas
ton of gold during the panic, he un-
dertook to show that the 500, ,0a0,-
600 of gold imported was sent here
upon bills of Iading to pay for wheat
and cotton that had been sent abroad
and therefore contended that the
banks deserved no credit.
| Ine only way the pdHheIS Supp
ed the panic" he said, was by vic
Iating the law and holding up th'
depositors.
The proposition to insure deposit
ihe said, was met by the big bank
with a protest against placing tn
little banks that were on lowe
D level on the same level with them.
These big banks" he declare
with emphasis, "are getting on
high horse and say nothing shoul
e be done to protect deposStors.
"Great God!" he exclaimed, 9TH
e panic demonstrated that ehe big bar
kers are on the lowest level"
g Mr.. Nelson commented on the pul
g chase of the Tennessee Coal and 1ro
= company by the United States ste'
% corporation by giving its bonds fc
r the stock of the steel and iron con
d pany and therefore was merge
te that removed the only competitor {
Is the steel corporation. "If they ha
J. bought the stock" he added. Il coul
a. see how they helped to relieve Il
er panic"
le Let us meet the necessities
protecting our depositors, stop Il
runs on banks. and prevent big banl
es in the reserve cities from tfefng Z