The Washington herald., 1908-03-05
HEPBURN BILLS FOE
Idaho Senator Opposes the
Aldrich Measure.
OBJECTS TO RAILROAD BONDS
Declares Ending stock Gambling
would Bring End OF Panics More
Currency Hopkins Defends BiH
and Opposes Pending Amendments.

Another Republican Senator, Mr.. Hey
and exhaustive address IN the Senate In
opposition 70 the Aldrich currency bill
Senator Heyburn's main contention was
against the use Of railroad bonds as a
basis for the proposed emergency cur
rency. But he also opposed the Issuance
of emergency currency. declaring that the
financial stability Of the country could be
better preserved by doing away with
stock gambling and the participation Of
the banks in that practice through the
lending OF the coUntry's reserves to
gamblers.
lie made a strong plea for the retention
of adequate reserves in the so-called
country banks, and said that the central
reserve city banks IN the recent panic
not only held no. reserve against the
country reserves which had been de-
posted with them. but tied UP the entire
available money of the country In specu-
lative ventures. Regarding the pending
bill. he said:
Let US dismiss this financial legisla-
ton from our minds, and give notice
TO the financial barons Of the country
that they must not indulge in such hnan-
cial tantrums."
No Lack OF Currency.
The country. he said. had not been SUI
fering from want of money. but from
lack Of activity on the part OF its money.
due to the speculative craze, which had
tied up the money. The currency OF the
country. he declared. had increased 10
the extent Of Sl9OOOOOoO. while the panic
was upon the country. lie would never
vote for a measure which proposed TO
base money upon a security of such
passing value" as a railroad bond. Ana
Lying the safeguards which the bill
placed about the governments interests
in the new proposed currency, he asked
who was to make the bonds deposited as
basis for the new money good IL a
caH for additional protection were issued
by the Secretary of the Treasury. and
the bank which had deposited the bonds
refused TO comply. II was suggested that
the government would close the bank. and
Mr. Hepburn said that in that case the
bill was a measure 10 promote hank
ruptey.
Toward the close of his speech Mr.. Hey
burn had an extended legal argument
with Senators Lodge and Teller over the
question whether the government would
have a prior lien upon the deposits of d
bank which had taken out some of the
emergency currency and failed to main
tain the required amount OF security 10
keep it in circulation.
c-oor-.
Senator Hopkins, Of Illinois, defended
the Aldrich bill IN a speech earlier in the
day. and attacked many Of the proposed
amendments. The proposal 10 guarantee
the money OF depositors he condemned
as "a step IN the direction of socialism. 8"
THE depositor enters into a voluntary
relation with the bank" said ne. "He
elects his collateral and agrees voiun-
tarily to a rate Of interest. The trans
action is a purely commercial one. To
say that despositor mag go about de-
posting IN any bank because he knows
that it is safe is socialistic The people
would lose their interest in the integrity
of bank officers and banking with all
these safeguards thrown around their de-
posits."
In conclusion. Mr.. Hopkins predicted
that II the Aldrich bill was passed. add
ing $500. 100000 to the circulation, it would
render such panics as that Of last faIl
impossible.