The Billings gazette. [volume] (Billings, Mont.) 1896-1919, 1908-02-14
RAYNER BLAMES
The |[:: PRESIDENT
DECLARES HIS METHODS HAST
ENED THE SHORT PANIC.
DISCUSSES CURRENCY
Senator From Maryland Talks Of the
Aldrich Measure-Mr. Richardson
scores Roosevelt in the House
Lincoln,s Birthday Observed.

scores Roosevelt in the House
Lineoln's Birthday Observed.
Washington, Feb. 12.-senator Ray
mel Of Maryland spoke at length in
the senate today on the currency bill,
condemning the present system of
banking in the United States and in
cidentally declaring that the presi-
dent, by his methods Of fighting the
encroachments Of predatory wealth,
had done much to intensity the panic
through which the country has re-
Gently passed.
Turning to Senator Aldrich, Mr..
Rayner asked how it happened that
the committee had stricken from the
bill the provision requiring the banks
located out Of reserve or central re-
serve cities to keep a reserve equal to
Is per cent Of their deposit liabilities
and hold at all times at least two
thirds of such in lawful money.
To Avoid Opposition.
The chairman of the finance COM
mittee replied that it was omitted in
order to avoid unnecessary opposition
to the bill in its main features.
There was" he added, great OPP
position to this from the country
banks, especially in the south and
west and the committee let 1t go to
avoid discussion"
He Believed that was a subject
which should be taken in a separate
bill.
Mr.. Rayner wanted to know who
asked for this change.
Looking toward the democratic
side, Mr.. Aldrich said Senator Talia-
ferro of Florida had moved to strike
ii out.
A colloquy then took place between
Mr.. Rayner and Mr.. T%aliaferro, the
latter insisting that he had just told
the former that he had moved to
strike out that provision OF which he
disapproved, because, in his judgment,
1t crippled the country banks in loan
Ing their money.
Present Law Not Responsible.
Upon the conclusion of Mr.. Ray
ner's speech Mr.. Aldrich recalled that
he had stated that he was in favor Of
a revision Of the banking reserve law,
but explained that he did not mean to
say the present law or the practice
under It was responsible in any sense
for the crisis through which the coun-
try has recently passed.
He said that on December 3 the
country banks had in their vaults as
a reserve $248,O 600, 900, and if they had
held the amount Senator Rayner
averred they should have. the amount
would have been SPAS, 900, 900 in gold
and legal tender notes. That was in
their vaults without regard to what
they had in reserve cities, for the
bank currency.
Nj. Bailey suggested that that was
not a fair statement. because for two
months prior to December 3, the
country banks, being unable to get
money from the reserve banks. had
been boarding their money.
Keep the Money.
MI. Culbersop explained that his
bill now before the finance committee
70 prevent banks from keeping their
reserves in other banks, was for the
purpose Of keeping the money in the
vaults OF the country banks. where II
could be used for loans and for NOV
Ing crops.
A controversy arose IS to whether
such a reserve could be used for any
purpose, w if kept in the vaults Q!
the banks, Mr.. Aldrich maintaining
that it could not be taken out, sena
tor Hepburn. as we'll as Mr.. Culber
son, declaring that 1t could be used il
an emergency.
Senator Taliaferro of Florida, tax
Ing otfense at what he regarded as
reflection upon him, by Mr.. Rayner
declared that his purpose in opposing
the reserve clause in the bill was II
the interest Of the people OF his stat
and not because OF any favoritlsm tt
ward the national banks.
Referring to his statement that tn
Florida senator had moved to strik
out that provision, Mr.. Aldrich apolt
gized for having referred to anythin
that took place at a committee NEE
ing, which he said was prompted to d
in a thoughtless moment by the a,
thority OF the Maryland senator.
cRITclsEs MESSAGE.
Nj. Richardson Is Witty at the Pres
DENTS