The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1908-03-10
MUCH GOOD AND BAD
FOUND IN ROOSEVELT
But the Panic, the Texan De.
clares, Was Not Chargeable to
Him-Unusual Outburst of
Applause Shows Ap-
prevail OF the Gen
ator's Views.
Times-Dispatch Bureau.
Munsey RIiiI1Inr

Washington, D. c.. March Q.
~ ENATOR JOSEPH w. BAILEY, OF
Texas. a member of the Finance
Committee, e9s,ni, (Which which reported ,s,'s .' the
held the attention of his coll
leagues and visitors, who crowded the
galleries of the Senate, for over two
hours with a speech In opposition to
that measure. When he concluded his
address he was greeted by storm of
applause, and Senator'S from both sides
of the chamber, as well as many men,
| bers OF the House. crowded about him
/ to extend their congratulations
| Senator Bailey's speech was probably
| the very ablest utterance on the cur
| rency question to which Congress has
| listened this session. Mr.. Bailey dis
! played the most remarkable familiarity
| with the smallest details of the sub
| ject not only of the general subject of
currency, but OF the aaily routine OF
| bankers.
He has not made speech in the
| body Of which he Is a member which
was more generally complimented than
the one Of to-day, unless it be the one
delivered in 1905. when the rate bill
was under discussion, In which lie
discussed his amendment to limit tho
right OF appeal to the courts in such
| an able manner that Senator Hale, OF
Maine, after listening an hour, inter-
rupted the speaker to say that tho
argument had converted him to the
belief that the Congress, as the creator
of the courts. had the right to limit
their authority.
Allowed to Applaud.
| The applause from the galleries at
the conclusion Of Senator Bailey's
speech was louder and more emphatic
than has been heard in the Senate gall
leries In years. and, contrary to custom.
| the presiding officer did not deem 1t
| necessary to call the spectators to
order. but allowed them to applaud to
| their fill. The number OF Senators
who gathered around Mr.. Bailey to
congratulate him on his effort was SO
| great that it was several minutes be-
fore the chairman made an attempt to
guide the Senate on to fresh business.
Senator Bailey said he did not be-
| lieve his substitute for the Aldrich bill
/ would result in initiation. although It
provided for s500.o0oOOO as a perma-
nent part Of our money supply. THE
| truth is" he said. "the national banks
| of this country are seeking to estab-
lish a system of asset currency; and
| they will strive to defeat any measure
| which compels them to secure their
| circulation. They want the privilege
of issuing their notes without interest
and without security. and lending them
| to the people for interest and upon se-
| curity, For my part I will never
support bill which legalizes such an
arrangement; and I shall always In
sist that the safety of our currency
is of infinitely more Importance to the
country than the size of bank divi-
dends"
He wanted to compel banks of the
/ tn art nf afrs nj tfoI
and surplus in State. county. district
and municipal bonds.
He quoted court decisions to show
that there Is no question as to the
right Of Congress to authorize the
issuance of money by the government
and make 1t legal tender for all debts.
Not Function Of Bank.
II cannot account" he said. "for
! the general but unfounded notion that
the issue OF currency Is the function
OF bank, except upon the theory that
! so many governments have abdicated
1 that sovereign power and have per-
i mitted banks to exercise 1T SO long that
men have coma to believe that 1t Is.
! and has always been. banking priVi-
I lege. Nothing could be further from
the truth than this
Mr.. Bailey reviewed at great length
the circumstances under which ma
tional bank circulation has been issued.
l IF any evidence we're needed to
show us the danger OF committing the
4 control over our volume of currency to
banks" declared Mr.. Bailey, recent
levents will furnish It. Last autumn.
when the country was in the very
throes of a money famine the national
banks did not come to the rescue with
!, cheerful and patriotic alacrity, but on
!, the contrary. sir, the Secretary of the
{ Treasury was compelled to beg them,
almost upon bended knees, to take out
additional notes. They preferred the.
clearing house certificates, because It
, was easier to retire them and less ex-
ponslve to obtain thenl.''
He insisted that the issue OF govern.
, ment notes proposed by him could not
! be charged as "recrudescence Of
!. greenbacktsln." The greenbacks. he
I added had done great service for tha
t government. and he defended the re-
5 cord OF that class OF currency. But. ha
explained. his substitute bill did not
propose money similar to the green.
backs.
!. The fact that his substitute Is not
drawn in the interest OF the banks. Mr..
Bailey said, Is shown by the opposition
, of nearly every banker OF the country
to 1t. The interest required on tbs
4 money so provided. he added, would
! prevent the banks from making any
! thing out of 1t. He opposed the idea
of making the great staple products
security on these deposits OF emer.
gency currency.
i It's nature as emergency currency
would be, he said. affected by such o
practice,
both Harm and Good.
Mr.. Bailey declared that he had his
own opinion on the cause of the recent
panic. and added;
II an, no apologist for the President.
Il and have no patience with the adnla-
4 tion OF him in which some Democrats
indulge, 1t is true that upon this
question OF railroad legislation he has
embraced the doctrine OF our party, ana
lsos thas ! applnua sini but he has dons