The Washington herald., 1908-03-25

where II belonged. instead OF being tied
up I'm Wall street operations. This legis-
lation was not needed 10 meet any legiti-
mate demands OF the country's commerce,
and would serve only special interests
not public interests
Why, the Wisconsin Senator demanded.
did not the Committee on Finance report
some legislation 10 keep reserves where
they belonged, 10 keep the cOuntry's
money where il was needed for legitimate
business. legislation TO increase security
Of depositors, and TO promote public
rather than special interests. and tighten
the grip of the money power upon the
control Of the industrial and commercial
life OF the country? He quoted from a
recent interview by the Deputy Comp
troler OF the Currency. Mr.. Kane. IN
which IL was stated that eleven Comp
trollers Of the Currency In fOrty-five an
nual reports had urged upon Congress
the enactment OF legislation for the
greater security OF depositors and the
more stringent regulations OF banking IN
the public interests, but that these recon-
mendations had not even received the
serious consideration OF the legislative
branch Of the government.
Bill Fundamentally Vicious"
Mr.. la Toilette declared that the Al
drich bill was fundamentally vicious. 3"
and that Il would not meet any legitimate
business demands He said that the with
drawal OF the railroad bond feature was
an admission that it was indefensible.
and il was provoking measure OF dis
cusslon which threatened 20 expose the
other features Of the bill. He declared
| that the whole bill, railroad bonds and
all. was OF piece.
Mr. Ia Toilette concluded with a pow
erful appeal to the progressive men IN
the Senate 10 stand together and beat
the bill In part he said;
Il have talked in vain II / have not
made plain the thought that there Is just
one issue before the country to-day.
smith Asks Questions.
Senator Smith asked il It were not a
fact that municipal and state securities.
which Mr.. La Toilette had said were
held most exclusively by the great spec
ulative banks. had not for years under
the existing law been held by savings
I banks in New England.
The Senator from Wisconsin answered
that whatever bonds OF that character
now rested in savings banks would soon
pass into the hands OF the money powers
when they became useful as a basis OF
circulation. for II needed no argument TO
make II clear that the power that con-
trolls all finance would control the issue
OF emergency circulation.
1T has been my impression. replied Mr..
Smith. that under the Aldrich bill the
evil of Capitalization would be modified
rather than accentuated. IL would seem
to me that when municipal bonds may be
used as basis OF circulation. local banks
and local investors will take them because
of their convertibility and their added at
fractions as an investment. Thus the law
would operate 70 decentralize, rather than
centrarize.'
Does the Senator from Michigan not
know" asked Mr. La Toilette. that the
Morgan Rockefeller banks are To be found
I'm every city Of the country? What chance
have your little local banks against them
i'm bidding for securities needed 10 con-
troll money issuesy'
Senator La Toilette mentioned Senator
Depew on his last group OF those in the
system" He looked sQUarely az Mr..
Depew. who was sitting on the other side
Of the chamber. Everybody laughed and
Mr.. Depew threw back his head and
laughed. too. When the speaker men
toned the smelter trust. he turned around
TO fix his eagle eye on Senator Guggen-
heinz of Colorado. but that young man
had left his regular seat, and was some
distance away. Senator Guggenhein' s
face was Illuminated by a broad smile
when Mr.. la Toilette named Daniel Gug-
Kenhelm. the Senator's older brother. as
a member Of the system