The Montgomery advertiser., 1908-02-26
SEN. OWEN ON ALDRICH BILL Criticises Many Features
 of Measure.
 -s- REVIEWS CAUSES OF PANIcS Charges Republicans With Using His Ideas op curreney. olslakema'. senator ssys He Ensesv- ored to write These Ideas Into
 Democratic Platform at
 Chicago in lsos.
REVIEWS CAUSES OF pANIes


 washington, Feb. 25,-Deciaring that he was in favor of bond secured erner- gency currency under an interest charge high enough to compel auto maticI contribution of such issues. sen- ator Robert u owen. of Oklahoma. pro- ceeded to criticize many features of the Aldrich currency biI in the Senate to- day Mfr. Owen desired more com pfete remedy than that proposed in tne conmitteeN bill. disappointed in the bill reported to the Senate"
 He did not believe in confining the benefits of the issuance of emergency currency to national hanks. The pro- visions for using railroad bonds Tor the basis of these emergency notes ne condemned strongly. but said he would feel conpeiled to vote for the meas ure- except ifs railroad bond feature. if his proposed amendments should not be adopted The only principle of the committee bill which he regarded as of value was that relating to the .'emergency notes, secured by bonds un- der penalty higher than the normal rate of interest
 Mir Owen declared he had endeay- cred to write that principle into the Democratic platform at Chicago In 1893 as A remedy agaiIfst protection, the Conmittee on Resolutions voting 1t in to the platform. but then voted 1t out. s'because 1t was novel proposition and tntrled." He had long been of tbS opinion, that 1t is perfectly easy matter to prevent panics In this coun- frv He quoted Mir. Aldrich to show tliat on December is, he said panics could not be prevented and again on February 10 made A statement which / he interpreted as meaning that panics could be prevented.
 vI caIl his attention, he said, reIer- ring tc Mir. Aidrich, Ito the Tact that he has adopted the essential princi- pls in the bill reported by his commit fas which was contained in an anlenay ment which bad the honor to araft ana which was ffgtr qdsseee "a me Egassa states senate on FepTuery ,. iseg, py Hon. James K Jonea and which was proposed as an amendHaeBt to tl1e nEaan- < cfaf bill now ln Sciiar9e 6t the Sea tor fr1In Rhode Island then as now cha1r. man of the Finance Committees
 To verffy statement.
 scndfug to the table a letter rom to verify his statement. If that arnendment had been adopted" former Senator Jones stated in his letter, "at that time. and t had been wnitten in the law. 1t would in my opinion. have prevented the late panic. am glad fo see that at last the principle of an emergency currency properly secured Is reco9nixed and that the Committee on Finance of the Senate endorses t"
 That amendment, said. MT, owen. continufng, contained every essential feature of the pending currency bill. When that amendment was proposed in 1900, he said, the chairman of tne vrfou n to have written into the statutes of the United States the very safeguards which he now declares essential
 MT. Owen reviewed the causes or panics, the primary cause of which he said, lis the fear of the people of the insolvency of the banks the cause soI this fear being bear" ruTnors about tight money, impending panics. etc: The rumors have sound foundation ''it those engaged in producing panic are strong enough to cause tight money Reviewing banking conditions MT, owen said the people knowing how 1tttle reserve is kept in banks, are always quick to take alarm and with draw their cash.
 "Hoarding, he added with emphasis lis the effect as well as cause of panic Fear is the soul~of a panic and fear may be founded on any of a number of things" The fear of the sdepositors 
 should be dealt with in treating panics. That could be done in no better way in the judgement of the Senator than bv assuring him of the safety of his deposit if the bank is found to be in- solvent
 Condemns TIeIng Resources.
 Commenting on the national bank ing system, he condemned the tteing of the resources and reserves of the banks in loans for speculative pur- poses. when they should be available for legitimate commerce. The loaning of funds to active officers of a bank without proper safeguard should. he declared, be forbidden, and cash re- serves should be strengthened. tte then analysed in detail the provisions of the pending currency bill.
 While the committee bill recog- nizea the importance of emergency money. he said. 1t limits the issue to s500.000.o00 of emergency notes. which has been demonstrated with great force by the chairman himself. to be insufficient in volume and then inl- poses restrictions that will prevent any but q fractional issue of the volume suggested.
 "The bill makes the emergency notes national bank notes in form. requiring $500 varieties of notes without sound reason. when these. notes are really made United states notes payable in gold or it's equivalent"
 Although two thirds of the banking capital of the United Statess State banks. trust companies, savings banks. and private banks are not allowed to have emergency currency, United States bonds are not permitted for this pur- pose He condemned the provision Of the bill. providing for the proportiohate issue of emergency currency among the several sections of the country. as one section shall be in dire need of such currency and the balance might not want them at all.
 Referring to his proposed substitute for the Aldfich bill. Mir. owen said it proposed United States notes for emer- gency use instead of bank notes and provides for their instant" issue. It allows all national etate or savings hanks. trust companies, putting up the necessary security, to use them. It provides that United States bonds may be used as security but strikes out railroad bonds It does not limit the quantity of emergency notes that may be issued. It requires tax of 6 par