The Washington herald., 1908-03-13
He PRAISES ALDRICH
Lodge Calls Him AbleSt FL
nance Authority.
PAYNTER OPPOSES GUARANTEE
Kentucky Senator, in First Speech,
Attacks Insurance of Bank Depos-
ness Lies i'm Primrose Path of FL
nancing, and Declines 20 Follow.

Senator Lodge. Of Massachusetts,, yes
terday defended the Aldrich currency bill
as the best measure that could have been
framed 10 meet an emergency.
He spoke of Senator AIdrich author of
the bill. as the ablest authority on fnan-
cial questions in the country.
Mr. Lodge admitted that in time a gen
eraI oyerhaulns of the financial system
would be necessary, and he advocated a
central bank under government manage
ment absolutely and with a board Of
government directors. He condemned the
proposed amendments for government
guarantee OF national bank deposits.
Senator Paynter OF Kentucky. address
ed the Senate briefly on the DILL. he op-
posed the amendment proposed by Sena-
tor Owen. Of Oklahoma, for government
guarantee OF deposits. Mr.. Paynter dis
cussed the proposal from the viewpoint of
a lawyer. and condemned It strongly. II
was the Senator's first speech in the Sen
ate
Lodge Finds Finance Maddening.
Mr.. Lodge diselaimed any intention 20
pose as a financier. MY observation has
been that legislators who become welded
to system which is TO cure all evils,
who devote themselves for years to the
contemplation Of a system which they
have themselves invented. are very apt
to grow unbalanced" he said. 1T re
quires a very robust sanity OF mind. like
that Of the Senator from Rhode Island.
to deal habitually with financial Ques-
tons without descending into something
very Ike fanaticism. ] have no desire
TO tread that primrose path, for it seems
to me that that way madness lies, and
1 do not care TO encounter its perils.
The chief merit Of this bill. 20 my
mind. is that 1t gives assurance that IA
times Of stress more currency can be
had. and when man knows that more
currency can be had he stops boarding
and then there is no currency stringency.
There could not be a greater mark Of
the success of this bill than that nobody
should ever take out any currency under
It. 1t would demonstrate It's efficacy in
that way more surely than in any other. ."
Opposes Deposits Insurance.
Mr.. Lodge said he was glad the Finance
Committee rejected the proposed plan to
guarantee national bank deposits. He re
ferred 10 the failure OF the experiment IN
New York State nearly a century ago.
TG3s brought Senator Knox. Of Pennsyl-
vania, TO his feet
The law of 1891" said Mr.. Knox. was
never designed to secure deposits. II was
only by an accident OF the craftsman who
drew the sO-caned. safety fund BILL and
who put in the words debts Of the
bank without distinguishing between the
liability 70 a depositor and the liability
20 a note holder. that Il was ever held
TO be a fund which covered deposits. and
II is not only true that the failure OF ten
banks wiped out the entire safety fund.
so-called. but II mortgaged all possible
accUmGlations under II for over eighteen
years"
Bankers "NOt Suffering"
In conclusion. Mr.. Lodge said:
II have no patience with the objection
that this bill does not provide sufficient
profit for the banks In my judgment
that is really the underlying cause Of all
the opposition that has spread and grown
toward this bill. The bankers looked Il
over and could not find any place in
which il promised great banking profits.
and as bankers are human, they felt dis
appointed ana fell to discussing and OBJ
jectiug. Their average earnings last year
were Is per cent / cannot. therefore.
think that they are suffering. The pur-
pose Of this bill, however. as I under
stand II. Is not TO provide profits for the
banks. but 10 try TO assure in a meas
ure at least. the business OF the coun-
trv against n recurrence of \ ferrfhIA