The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1908-02-10
ALDRICH OPENS
HIS DEBATE ON
THE CURRENCY
Continued from First Page.)

ruuences OF any which has occurred in
the history Of tho country. Nothing but
the heroic measures taken by the repre-
sentatives OF the great business and
financial interests OF the country, act
ing in cooperation with the Secretary
of the Treasury, prevented total COZ
lapse Of private credit and a disastrous
destruction of all values. II Is impos
Sible 10 conceive. much less TO measure,
the losses which would have resulted (
from such a calamity. The country was
saved, by the narrowest possible mar
gin, from an overwhelming catastrophe
whose bhghJng effect would have been
felt in every household.
"A total collapse was avoided. but
the shrinkRge D. values of securities
and property and the losses from INJURY
TO business, resulting from ana mel
dental 10 the crisis, amounted TO thou
sands OF millions OF dollars.
The serious defect OF our monetary
Eystem, as disclosed by our recent Dit
ter experience, is the fact that We nave
mo means whatever for providing inc
additional issues necessary 10 meet OF
TO prevent panic conditions.
During the progress OF tle Crisis III
dts more or less acute stages extra
iordinary steps were takenttO avoid final
disaster. II appears that from time 70
time during the crisis there was an
FsnfoTced increase in the amount or Guy
TCncy and currency substitutes, not n
lcludinE additional deposits OF public
moneys IN The banks, 10 the extent ol
about S46S, 600 coo.
or the eNpCNleuLS aAopLctlf ZIG use "a
clearing house certificates was unques-
nc nably the most effective.
''The grsat losses which the peopie |
OF the country suffered from the pai-
Jial breakdown of our credit system 4
through bank suspensions, and Whlcl
the abnormal increase IN the NOiuIhe O4
money and it's ubstitutes-legal anu
ulegal-faiiCd TO avert, should LEAD CoA- /
1Zress to seriously consider the question /
whether Il is possible 10 PROVIDE sueii 1
= legislative remedy as shall prevent LLle I
FeourT ence OF these conditions IN the iu- /
"If the experience Of last year should /
be repeated-and who can say that ms
Is iYnpOssible-the methods OF reheI thsI 1
were employed in 1901 will not De aNdlt-
able, certainly not TO the same extent /
Deficit Seems Probable.
sr-,rst If is not at all likely that the |
Treasury will be in condition 10 make |
increased deposits of public moneys in
national banks. With the strong proba- /
bilities Of a considerable deficit. and as
a matter OF wise policy, Government de-
COSTS in national banks must, and /
am quite willing 10 say should be, large
Is diminished
Second. the fact that a very large
broDor1ion of United States bonds are
now held by the national banks, an
amount which cannot be materially IN
creased makes Il probable mat thefe
will be a diminuJIOu rather than an IN
crease Of national bank notes based !
upIn United States bonds. In fact, il
would be almost If not quite Impossible,
to further increase the volume OF Such I
aotes in case Of an emergency.
'"Inird, IL is quite possible that we may
not be able 10 command large iTnpOrtG-
lions of geld. The very large increase In
the expectation OF products. with re-
aUCed ImpOrtatiOns, which TOOK place IL
The last ICur months OF 1907, produced
al no ~ -
than $500 coo 600 In cur favor. These IA
Vorable conditions may not exist again, /
and n any event imports OF gold can
lever be made in urne 20 reiteVe an /
acute condition Of panic
Army of Unemployed Will Grow.
''Whne the general conditions have
Improved and are improving. there are
Bill many causes for disQuiet in indus
trial and financial circles. 1t is quite
probable that there Will be considerable
additions 20 the army Of the unem-
plOyed. and It is quite impossible for any
man 20 predict with any degree Of
confidence, what the industrial and
financial condition Of the country viii be
btxt autumn.
In any event if the business interests
y the country are left defenseless
most serious consequences may follow.
The expedients which the responsible
ofticerS Of the Government and OF the
great financial institutions were Obliged
TO adopt in the panic OF 1857 point the
nay 10 effective curative legislation.
There seems TO be but one way IL
which this can be accomplished, namefv.
by some provision for the authorization
Of additional notes TO be used only in
Emergencies
Simple, Prompt Remedy.
1.-THE remesg We provide is simple.
prompt, and efficient. At any time
within foTty-eight hours. if an ener-
yency requires it, S5OO.OO0OOO of new
money can be put into the channels Of
trade to allay public excitement and TO
meet extraordinary demands
The committee believe that this great
Nnd. placed By the Government at the
disposition Of the bankers and business
men or the country, will have d stropr
tendency 70 prevent financial crises and
% preserve public and private cregfIf
u home and abroad.
In periods of dlstrUst large numbers
~ people are controlled by sentiment
experience mas shown that at such =
ime the strongest element IN sUavire
excitement and creating Confidence -
lhe knowledge that & remedy a~isfs
which can and viii be promptly and
fnectively applied. The existence of
This great fund IS like the creation 81
IN ample Water supply with effective
apparatus TO check CONGREGATIONS
There should be no acknowledgements
ng as 10 the sole controlling PURPOSES Of
mis- bill II proposes by its provisions
10 prevent panics and furnish az
heans of relieving panic conditions we
10 not claim that Il is a universal nan.
hcea for all financial ills. It is 10 give
lhe national banks the means OF ac
sOmpiishing by legal methods that
Fhich. in this crisis, they felt con1peIlai
10 accomplish by Illegal and destrIIcfive
UethCds, to the great loss Of the cOun-
ny. 1t makes no pTetenSe OF providing
new monetary system and tries no
Few experiment with our currency. IT
surrounds notes TO be issued by safe
guards for ultimate payment similar TO
hose now in use.
Speaker Grows Sarcastic.
EPubHc discussion of the bill has
turned largely upon the question vbetb-
sr the measure proposed vas satisfac-
Tory TO bank managers, ignoring the
TACT that the question Of the soundness.
character, and volume OF currency is
sne IN which the public is vitality in
ierested. / must confess that IN con-
hderiug relief measures. IL did not oc-
TUT 10 the committee that their first
Iuty was 10 provide additional profits
10 the banks.