The Washington times., 1908-03-03

William Alden Smith ASSails
Bond Provisions in
Debate.
Democrats Pleased at Evil
dence s of Discussions
Among Republicans.

Troubled times are ahead for the
Aldrich currency bill. For weeks there
have been mutterings Of dissatisfaction
concerning this measure from the
House. 1t has been quite generally
taken fol granted it would get through
the Senate. Now. the friends OF the
bill are growing alarmed over the out
look for 1t even L. che Senate.
This alarm has been accumulated by
the developments yesterday when SEN
atOr William Alden Smith OF Michigan.
in his maiden speech vigorously at
tackled the railroad bond feature OF the
measure. Senator Beverage came to
his support, showing that he Is in sym
patty in some degree at least with the
views OF the Senator from Michigan.
1t is known this Republican opposition
Goes not by any means stand alone.
Other Republican Senator's are cold
toward the bill. Senator La Toilette
las been waiting for an opportunity TO
attack It. Senator Brown OF Nebraska
and some OF the other Western Repub-
leans are rated as hostile 70 the Aldrich
plan. Some OF them are saying they
viii on no account vote for it.
Would Hart Most Of Bonds.
Senator Smith objected to the railroad
bond provision OF the Aldrieh bill on
the ground that It would be possible
for not more than 500. OOO.OO0 or SSO0O00.-
90 Of the railroad bonds OF the coun-
try 10 be used as a basis for emergency
circulation. AS there are upwards OF
IS, 900, O0o,OUo OF railroad bonds issued
b. the roads OF the United States. this
would leave the large percentage OF
90.
lation and branded in the markets az
not acceptable. Such discrimination, he
held. would injure the sale Of the bonds
that the Government did not accept 10
secure circulation. He warned the sen
ate that the sale Of railroad bonds
now was difficult enough, and that il
was extremely unWise to do anything
that would further hinder their sale.
Further than this. he declared the
use OF railroad bonds as security for
circulation was the initial step toward
Government ownership OF roads. The
Government, he said, in accepting a
railroad mortgage bond as security for
circulation became the rlOrtgagee and
Il was not = remote contingency that
II might be obliged to foreclose. and
take over the property.
Aldrich Answers Criticism.
Senator Smiths observations led SEN
ator Aldrich to make spirited reply
and he was backed up by Senators
Hopkins and McCumber. He made light
Of the idea that there was any danger
Of Government ownership He thought
the discrimination against such rail-
road bonds as were not acceptable for
circulation was not serious He contend
ed that the Government had the most
ample security when it accepted a rail-
road bond as security for circulation,
and there was no danger whatever that
the Government would be the loser.
Senator Aldrich was nettled by the
charge made by Senator Smith that
the railroad bond provision was put in
the bill to increase the price Of rail
road bonds.
IF it was not put there to increase
the price Of railroad bonds what was
il put in FORE" asked the Senator from
Michigan.
Senator AIdrich declared the purpose
Of the committee was to afford the
country a safe and sound currency. and
not TO affect bond pRces one way or
another
Democrats Pleased.
Senate Democrats were highly pleased
over the evidences of Republican dis
sensioI. over the currency bill. Senator
Tillman expressed his delight over the
exchange Of compliments. Scnator
Bailey was likewise pleased.
1t was expected Senator Aldrich would
ask a vote on the bill in short time, |
but the indications now are that he will |
be in no hurry 10 do so, and will pre-
fer TO await developments, hoping that
the bin VIII gain support among Re /
publicans as the debate proceeds.