The Washington times., 1908-02-14
Georgian Says Bonds of
RequiredSort Are Most
ly Owned by Eastern
Banks.
Advocates Circulation of
Treasury, Notes DecIar-
ing Most of Money
Is Fiat.

Senator clay spoke for an hour and a
half today Ia the Senate debate ou the
Aldrich bill, discussing every phase Of
the financial question
lie anaIyzed tie bill. and declared It
was wrong and vicious, and would give
no relief 10 the South and West. He
cuntended that II simply enlarged the
powers Of the national banks, that Con-
gress was relinqEiahing the sovereign
right 10 issue and circulate money. lie
favored the minority plan for tie Gov
ernfnent &c issue S500. -. COO OF Treasury
notes. and To use them iu paying the
expenses Of the Government. that they
might find their way into all the chan
nels Of trade
Mr. clay called attention 10 the $50.
00o.000 Of Treasury notes in circulatioa
rot costing the Government anything
and performing aH the functions of
money, and asserted that thls amount
could be easily increased 800. .e00.0JO with
out disturbing finances. and without re-
suItine in a deprecated currency.
Says East Owns Bonds.
The Senator contended that State.
city. and municipal bonds OF the South
and west arc now held hy Eastern
capitalists. and that the South and East
could not By their use secure any et-
Litional circulation. as they had al
ready been sold IN the East he de-
cIzred that the class Of railroad bonds
mentioned I'm the Aldrich bill applied
SOLELY 10 the railroads in the East, and
that the railroads IN the South and
Wet had never paid dividends as pro-
y-i3est in the Aldrich bill. The biil,
averred Senator clay. was drawn i1
favor Of the rich and powerful en-
abIira them 10 control the money issue.
and not in the interest OF the Ameri-
can people He ridiculed the idea that
adIitiouai Treasury notes would depre-
Ciate because the Treasury has not tle
gold q redeem them.
Mr CLAY said: III the Aldrich bill
becomes u law, the Government guar
antees the redemption in gold Of the
banks and would not this be as great
a strain on the gold reserve as Treas
ury notes?'
Should Guard Issuing Power.
Senator Clay maintained that the is
sue OF paper money should be K Iarded
and limited IN amount TO meet the
needs and actual demands Of the coun-
try. He criticised severely the financial
policy of the Government In the past
in making our bonds and all of our
obligations redeemable In gold
But" said the speaker. ''if our paper
money should be carefully guarded and
limited in quantity. and made legal
tender in the payment Of debts. pos
sessing and enjoying all the functions
of money, then it viii not depTeciate in
value and will be as good as gold and
silver because It will have back OF
a tba entire resources OF this great Re
nubIic-aU OF our agricultural products,
an Of our banking capital all OF our
reel estate. and all OF our property OF
every class and kind-iust the same
,roTertv that is now back Of all the
obligations OF the United States
Most Of Money Is Fiat.
.Taik about fat money" said the
senator "aH of the paper money We
have I'm circulation today. except the
e-oId certificates. is fat money TO large
evtent-vour national bank note IS based
,,Do,, the bonds OF the United States
and while they are redeemable in gold
"a one will contend that we have the
gold 10 redeem them; they are good
because the pledges Of the Government
are behind them, and they have been
made money by an act OF Congress
and legal lender IN the payment OF
Mr. CLAY said that It would be a sad
da1- for this country when Congress
should absolutely surrender the SOW
ereizn right to regulate our circulating
medium and leave it to individuals and
country should be owned BY the bank
inc association