The Birmingham age-herald., 1908-02-13
Maryland Man Criticisss Pres- ident and His Policy
UNFAIRNESS IS CHARGED
Senator Rayner Declares That in Han ding Finances the Administration Has Injured the Interests of
 Great Working Glasses.

Washington, February 12.-Senator Ray ner of Maryland spoke at length in the Senate today on the currency bill, con demnng the present system of banking in the United States and incidentally de- claring that the President by his meth ods of fighting the eneroachments Of predatory wealth had done much to in- tensify the panic through which the country has recently passed.
 Turning to Senator Aldrich, MT. Ray ner asked how it happened that the com mittee had stricken from the bill the provision requiring the banks located out side of reserve or central reserve cities to keep a reserve equal to 10 per cent of their deposit liabilities and hold at all times at least two-thrds of such in lawful money
 The chairman of the finance committee replied that it was omitted in order to avoid unnecessary opposition to the bill in It's main features.
 ''There was" he added, 'great opposi- ton to this from country banks, espe- cially in the south and west and the committee let it go to avoid discussion
 He believed that was a subject that should be taken up in a separate bill,
 .Will the chairman tell us when he will take up such a bill?" interrupted Mr TiIlman.
 T will answer quick said MT. Ray ner. "he will do 1t when tariff bill is taken up.
 MT. Rayner wanted to know who asked for this change
 Looking toward the democratic side, MT. Aldrieh said Senator Tallaferro of Florida had moved to strike it out.
 A colloquy then took place between MT. Rayner and MT. Taliaferro, the latter insisting that he had just told the former that he had moved to strike out that provision which he dsapproved because in his judgment 1t crippled the country banks in loaning their money.
 Rayners Address.
 MT. Rayner said he realized that the bill will pass, and declared that the op ponents have the consolation of know ing that 1t is simply and solely an emer- gency measure.
 After outlining what he considered to be faults with the currency system of this government, he said:
 'The truth about the situation is that the money in this country is not equit- ably and fairly distributed and that it is concentrated at points that dominate the banking interests of the land and that the people who need the money and agricultural sections of the country and the country banks and the country towns and mercantile and farming interests and 1Icin mt ara able to procure it when the necessity arises for its use, and are all sacrificed to gratify and appease the demands that are concentrated around the financial centers of the country. We will never have any permanent relief until we strike at the root of the evil and reform our entire banking system from its founda- tions in the interest of the American peo- pie against the special interests"
 While opposing the Aldrich bill MT. Rayner went on record also against credit currency, a-n asset currency and a central bank of issue. The great trouble with the pending bill Is with the reserves he said, and he declared that the law regulating them is simply an undsguised and stupendous deception and fraud" He said that the reserve scheme as now operated works dlshonestly and disas- trously upon the rights of the American people and that the deposits of money
 
 finally carries it to the reserve cities, con tributes to make the worst system in the civilized world.
 Better System.
 Why. sir" said he, the native saw ages upon the banks of the Senagambian river with elephant teeth and the bark of the mulberry tree as circulating med ium, have better system of finance than this" If the country and city banks have on hand only per cent and IF per cent respectively, the reserve deposits, MT Rayner wanted to know, who docs have the money. Answering his own question. he said he supposed the stock market has 1t to large extent. Continu- ing. he said:
 "So, gentlemen of the south and west. when you want to move your crops, do not apply to the banks because they have no money but apply to the New York stock exchange for permission to do so. Is it not frightfu that this iniquity should continue, condemned by every intelligent flnancier and honest man in the land. You will underst tand that in the seasons when money is easy the reserve is for warded to New York as quickly as they can for interest, and then when the hour of contraction comes the New York banks are unable to send the reserves home again because the money Is all loaned out.
 MT. Rayner asserted that the absence of a provision correcting the evils pointed out in the reserve system amounts to d disfguration of the Aldrch bill, and that the measure In Its present form will work more effectively in the interest of large dividends to the stockholders of na- tional banks than 1t does in the interests of the American people"
 Change Needed.
 ''I appeal to this body he said mot to pass bill which peremptorily declines to make any change whatever in this sys- tenn of reserves and permits this blundei- ing and fragrant injustice to permanently disgrace the statutes of the United States.
 
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