The Washington herald., 1908-02-12

There was a brisk running debate in
the Senate yesterday afternoon of the
Aldrich currency bin. lasting for about
two and one-half hours.
Senator Aldrich, of Rhode Island, chair
man Of the Finance Committee and
author Of the bill, asked that It be taken
up and the amendments proposed by the
committee be considered and accepted pro
1orma, in order 10 facilitate the considera-
ton Of the measure.
Before the Senate had adjourned the
bill had been read through, and with two
exceptions the amendments had been ac-
cepted Mir. Aldrich announced in the
course Of the debate that the committee
was considering other amendments, which
would be brought in later.
Senator Bailey, minority leader on the
Finance Committee. made IL clear that
the Democrats would offer no unneces-
sary obstruction TO the passage Of the
measure through the Senate lie de-
clared his opposition, however. TO all
forms Of money issues except those Of the
government direct
Bailey Outlines Views.
IF 1 could have my way IN the mat
ter" said the Senator from Texas, there
would be but one kind of currency after
next January. I would call IN the gold
certificates and issue in their stead gov
ernment notes. and transfer the gold now
held IN the Treasury for the redemption
OF the outstanding gold certificates 10
the general redemption fund, set aside in
the Treasury 20 redeem the greenbacks.
in that way / would create a redemption
fund of S9G1O00,000, which would be ample
10 float two and "a half billions OF cir
culatou.
MIR. Bailey condemned the asset cur
rency proposition. and declared that the
currency proposed in the Aldrich bill was
similar TO an asset currency If the gov
ernment was TO hold a lien upon bank
assets TO secure itself, should other col
lateral fail.
Could Break the Treasury,
He expressed the opinion that the issue
of S5a0,000o0 of currency in the form pro-
posed by the AldTiCh bin constituted no
less a drain upon the redemption re
sources Of the Treasury. than would the
issue of a ike amount Of government
notes. for the reason that the Aldrich
bill proposes that the issues under il
shall be redeemabIe in lawful money, and
with greenbacks, which are lawful money,
the holders of the emergency issues could
draw from the Treasury every dollar Of
gold Mr. Bailey declared that men so
disposed could, with the aid OF the $685.
O50.000 of greenbacks now in circulation
successfully raid the gold reserve in the
Treasury.
Several Amendments offered.
Among the amendments offered was one
by Senator Lodge, to include Philippine
government, municipal and railroad bonds
as security for circulation In cases where
such bonds We're guaranteed by the Pl IL
ippine government; one by Senator La
Folette, directing the determination OF
the actual physical value Of railroad
properties by the Interstate Commerce
Commission, and certiication OF the same
70 the Secretary of the Treasury in eases
OF carriers. the bonds of which were
rendered as basis for circulation; and
one by Senator McLaurin, limiting the
amount Of circulation 20 be issued to a
percentage Of the par value rather than
the market value of securities.
Mr. Hepburn Rep., IdahOl served no
tice on the Republicans that he would
stTenuously oppose the acceptance of rail-
road securities as a basis for the new
currency proposed in the Aldrich bill.
Demands Full Attendance.
The Senate took up the consideration of
the bill with view of adopting the COM
mittee amendments.
Senator Bailey said he would offer no
objection to the adoption Of the commit
Tee amendments, as there was no serious
opposition to them, but he coutended that
there ought TO be a full attendance in the
Senate and no limitation upon the right
Of amendment,
An interesting feature of the discussion
that followed the consideration of amend
ments was as 70 whether the word rail
road" as descriptive Of securities which
should be accepted 10 the amount of q
per cent OF their face value as basis for
circulation. included interurban or street
railway securities. Senator Dolliver. OF
Iowa, prOpounded the inquiry. Mr.. Bailey
replied that the committee had carefully
excluded interurban and street railroads
from the classification,
Washington Railways EIfgibIeg
Senator Gallinger, of New Hampshire
explained that the Interstate Commerce
Commission had asserted authority over
the street railroads of Washington under
the rate law. and had notified the stree
railways that they would be expected L
comply with certain requirements of tn,
commission.
Alr. Bailey thought under such crcum
stances it would be well to read the ran
road classification more carefully.
"The courts Of appeals have held il
many instances that the word railroads.
when it appears in the statute, included
interurban and street railroads." sug
gested Senator Rayner, OF Maryland
Mr. La Toilette offered as an amend
ment his railroad valuation bin, authoriz
ing and directing the Interstate Com
merCe Commission 10 proceed TO take In,
physical value OF all railroad propertie
ii the United States, and to certify tn,
same 10 the Secretary of the Treasury
and providing that no railroad securiue
not SO certified shall be used as a basis
for circulation, nor any valuation be aC
cepted except that so certified by the In
terstate Commerce Commission
DF. Gomez Ia UnseRted.