The Montgomery advertiser., 1908-02-14
OBJECTIONS IN BILL
ALFRED CROzIER PROTEsTs
 AGAINST ALDRICH MEASURE.
Points Out Many Defects And Makes q Few suggestions--Talks of
 The Panic And Its


 Washington, Feb, 1S-Senator Tili- man today presented petition to the Senate from Alfred O. Crozier. manu- facturer of Wilmington, Della, protest- ing against the passage of the Aldrich currency bill.
 It was read and will be printed in the Congression Record. The petition strongly objects to that feature of the bill which removes the restrictions of the exitsing law against the retire ment of the present bank notes and the contemplated emergency currency.
 Such law" said Mir. Crozfer. would start agitation that might take from National Banks the right under which they now profitably issue and loan to the public nearly S700, 100000 of bank note currency and perhaps jeopardize the gold standard itself
 Bank note currency is not Q legal tender. Its acceptance as money can not be compelled. Few know this. Prominent lawyers, business men and even several members of Congress. dis- puted this fact until shown the law. The people generally are deceived by the governments indorsement into be- lieving 1t to be real money. It looks like money, but it is not. Anyone can refuse to accept 1t. Then actual money gold or treasury notes, must be found and rendered. This demand at the last moment works great loss ana wrong. Do we want $500, 100000 more currency that Is not lawful money7'
 The panic, Mir. Dozier says. appeared ''providentially just before this session of Congress when it was planned to seek currency legislation." Referring to the demand for an emergency cur rency, he says:
 'aThey did not explain why the coun- try has got on so well for a dozen years without panic or change in the cur rency laws Many believe the panic was caused by such promoters to pinch the country into hurrying Congress to hastily pass the currency 1egisiation they desire, to punish the administra- tion for enforcing the laws without fear or favor to advance interest rates and to reduce wages of labor ana prices of securities and property for their lawless purposes and profit
 ''The failure of the Knickerboclxer Trust Company precipitated the runs on banks and caused the panic. Sud- den refusal by one wall Street bank further to clear for that trust com pany and wild exploitation of that fact in the newspaper, wrecked the trust company. The powerful master Of Wall street, who is said to dominate that bank, sat in the gallery of the United States Senate and nodded ap- proval as the distinguished author Of the Aldrich bill spoke in advocacy Of the measure"
 The plan for an elastic currency. MT. Crosier declared. is in reality to put into private hands the dangerous power to contract and expand the pub lie currency suddenly fin large volume. This, he says, would enable them to at will the prices of listed securities. property and labor by simply making money scarce or plentiful
 'The biggest joker in the Aldrich bill. said Mir. CrozIer. "is the fact that tie restriction on contraction of bank note issues Is wiped out entirely. It makes it possible suddenly to con tract and destroy in one day. the en- tire $70O, 000, 900 bank note currency, and also the $500.0O0,O00 emergency currency, or total of S1.2OO, 900, GOO of currency used by the people as money. Sudden contraction of but $50, 1000, 900 available money by bank depositors recently caused a fearful panic ana alarmed the whole country, what would 1 happen to the country when the | strangling contraction of more than | billion dollars, about half the available | money supply of the United States, the | most active and convenient half. was | oegun?"
 The only way to make this currency | elastic more than in name is to have | he government issue it direct to Ma | tional. State or savings banks trust | companies, corporations and in- iividuals, to all who deposit the re- luired bonds as security and pay the nigh tax. Then supply and demand would control and 1t would be impos- Iible for interest rates ever to go above lay eight per cent anywhere The | r1T. 'and at crop time and contract after yards"