The Washington herald., 1908-03-10
BAILEY HOLDS FLOOR
Continued from Psse Four.

Continued from Page Four.
afford any substantial relief. because both
exact security which the banks do not
now carry, and which they cannot be
fairly expected 10 procure. The banks
themselves are particularly insistent upon
this objection, and many OF them are
actuated by purely selfish motive. They
are not satisfied with the extremely profit
able dividends which they have been able
10 pay 10 their stockholders. and they
want the government TO establish cur
rency system under which they can ex-
pect 70 pay sim larger ones. The truth is
and it might as well he stated here and
now-that the national banks OF this
country favor system Of asset currency:
and they will labor 10 defeat any mea sure
which cOmpels them 10 secure their circu-
lation. They want the privilege OF issU-
ing their notes without interest and with
out security. and lending them TO the
people for interest and upon security.
For my part / Will never support bin
which legal!zes such an arrangement; and
| shall always Insist that the safety CO
our currency Is OF infinitely more i'm
pOrtance 10 the country than the size of
bank dividends. II the banks must be
permitted 20 issue our currency, they
ought 20 be compelled 20 secure il so alb
soutely that no business man. farmer.
or wage Garner would ever think II nee
essaTy TO inquire about the sOlVency OF a
bank in order 20 ascertain the value OF
It's notes. The wise men admonish US.
Mr.. President, that Il Is never safe TO
make a prediction which must be felsfed
or fulfilled within the time OF those who
hear e., but I viii venture TO disregard
this admOnitiOn so lar as 10 record il as
my opinion that il my substitute is re-
iected. and this bill is defeated. Congress
VIII either establish a great central bank
Of issue within the next ten years or au-
thorize the national banks as now con
sututed 10 issue an asset currency. and
the men who are now declaiming against
a bond-secured currency are promoting.
consciously or uncOnsciOusly, the scheme
Of a nonsecured currency
Where Parties Differ.
The divergence Of views between the
majority and the minority Of the commit
tee began with respect TO railroad bonds.
That. however. may be considered a mat
ter OF mere policy. not involving any gov
eUnmental principle: and II II were the
only difference between US 7 might be
willing TO support their bill. notwith-
standing / would seriously object TO that
particular provision % e. But. sir. there
Is another difference between the major
lily and tho minority, which IS incompar-
ably more important than any question Of
security. and which TO my mind involves
fundamental principle OF this republic
Il al Ina. 81
whether these emergency notes shall be
issued by the banks or By the govern
ment The majority VIII not agree for
The government 70 Issue them. and the
minority cannot agree for the banks 20
Issue them. This IS d question which has
been debated many times in our history
but It has not always been correctly de-
cidcd after each debate. We have among
Us large number Of very Influential men
who believe that the banks and not the
government. should issue and control our
currency. Indeed. sir. we sometimes hear
them say in the Senate. and We fire.
quenuy hear OF them saying elsewhere.
that the government ought 10 90 out of
the banking business and they mean by
this that Congress ought TO retire al
United States notes and turn our entire
paper circulation over 20 the banks. That
the government Of the United States
ought not 20 engage in the banking bust
ness am more than ready 10 admit: but
utterly deny that the issuance Of notes.
Impressed with the legal tender quality.
made receivable for public dues. and in
tended 60 circulate as money is any
proper function Of a oauk. Il Is as much
the duty of the government 60 issue notes
which are 20 be received and treated as
money as IL is 10 coin thu money which
Hrra r..TH 4
even the men who favor a bank currency
viii not contend for coTpOTati0n-issued
coin.
Dcmorracy's stand Unchanged.
The position Of the Democratic party
to-day IS precisely the same as /. has
always been upon this question. Il Is
standing now ss Il has stood so raaay
times in our history. between TWO great
and dangerous extremes. On the one side
stands q party-the true successor Of the
old greeabaek rsanization-demanding
an unlimited issue Of irredeemable paper
money: and on the other side stands the
Republican party demanding that the
banks shall issue our currency and that
the government shall guarantee its Re
dempUon. Between these two, the Demo-
that the government shall exercise the
sovereign right Of issuing our currency.
but sOlemnly promising that every note
which is issued shall be redeemed in coin
upon the demand OF its holder
"A peculiar and. as / believe a wholly
indefensible provision OF the bill is the
section which repeals all Limitation on
the right OF national banks 20 retire their
ordinary circulation and leaves them free
10 work out a damaging contraction OF
the currency.
This bin, instead OF repeating all i'm
itatiOn on the right Of national banks 10
retire their ordinary circulation. ought 10
contain provision still further limiting
that right. The argument heretofore
made in favor of permitting the banks to
retire their notes was that they would
thus be induced TO provide larger issue
when the necessities of the country re-
quired more currency, 1t was contended
and there was much force in that con
tention-that If the banks were compelled
10 keep out, during an ordinary time, the
currency which they had issued in an ex-
traOrdinary time. they would be less in
clined to take out additional notes when
more currency was needed; and that ar
gument prevailed upon Congress 70 per-
NIT the limited retirement of their notes.
But, sir. IL this bill becomes a law, ma
uOnCt banks will not take out ordinary
circulation TO meet emergencies and the