The Birmingham age-herald., 1908-02-14
CURRENCY IS NOT
 | LEGAL TENDER Manufacturer Asks Congress
 Not to Change Laws AGAINST hLDRICH BILL Petitioner Declares That Panic Was Caused By Promoters Who Dc
 sire To Profit By Possible
 Hurried Legislation.
AGAINST ALDRICH BILL

Washington, February 13.-Senator Till man today presented a petition to the Senate from Alfred o. Crozier man ufacturer of Wilmington, Del, protest ing against the passage of the Aldrieh currency bill. It was read and will pe printed in the Congressional Record. The petition strongly objects to that feature of the bill which removes the restric- tions of the existing laws against the retirement of the present bank notes and the contemplated emergency cur rency.
 "Such a law" says MT. Crozier, "would start agitation that might take from national banks the right under which they now profitably issue and loan to the people nearly $70o00o,Oo0 of bank note currency and perhaps jeopardize the gold standard itself.
 Bank note currency is not legal tender. Its acceptance as money cannot be compelled. Few know this. Promi- nent lawyers. business men and even several members of Congress disputed this fact until shown the law.
 "The people generally are deceived by the governments indorsement into be- lieving it to be real money. It looks like money but 1t is not Anyone can refuse to accept it. Then actual money, gold or treasury notes, must be found and rendered. This demand at the last mo- ment may work great loss and wrong. Do we want $6O0, O0O,O 900 more currency that is not lawful money?
 
 "providentlally just before this session of Congress, when it was planned to seek currency legislation
 Referring to the demand for an emer- gency, he says: They did not explain why the country has got on so well for a dozen years without panic or change in the currency laws. Many believe the panic was caused by such promoters to pinch the country into hurrying changes, to hastily pass the currency legislation they desire to punish the administration for enforcing the laws without fear or favor, to advance interest rates and to re- duce wages of labor and prices of securi- ties and property for their lawless pur- poses and profit.
 'The failure of the Knickerbocker Trust
 
 and caused the panic. Sudden refusal by one Wall street bank further to clear for that trust company and wild exploita- ton of that fact in the newspapers wrecked the trust company. The pow erful master of Wall street, who is said to dominate that bank, sat in the gallery of the United States Senate and nodded approval as the distinguished author of the Aldrch bill spoke in advocacy of the measure"
 The plan for an elastic currency, MT. Crozier declares, is in reality to put into private hands the dangerous power to contract and expand the public currency suddenly in large volume. This, he says, would enable them to manipulate at will the prices of listed securities, property and labor by simply making money scarce or plenty.
 "The biggest joke in the Aldrich bill says MT Crozier, 'tis the fact that the restriction on contraction of bank note issues is wiped out entirely. It makes possible suddenly to contract and destroy in one day the entire $700,0O ,00O bank note currency and also the $500. 900 ,00O emergency currency, or a total of $1,2O0, 100000 of currency used by the people as money Sudden contraction of but $50,000 900 available money by bank de- positors recently caused a fearful panic and alarmed the whole country What would happen to the country when the strangling contraction of more than a billion dollars, about half the available money supply of the United States, the most active and convenient half, was begun?
 "The only way to make this currency elastic more than in name. is to have the government issue it direct to national, state or savings banks, trust companies, corporations and individuals, all who de- posit the required bonds as security and pay the high tax. Then supply and de- mand would control and it would be impossible for interest rates ever to go above say per cent anywhere. The volume then would automatically expand at crop times and contract afterwards. ''