The Washington herald., 1908-03-10
Makes Notable Speech on
Currency Question.
PAYS RESPECTS TO PRESIDENT
Roosevelt Not Responsible for Panic,
hut Source of Evil as CenfraIIEing
Infiuence-Emergene Money De-
manded as Insurance Hereafter.
Has Faith in Future of Country.

4tuC9 Jill dtU INC SpOhtSuidu VI TIE Oclu-
ocratic party. in the debate on the bill.
The galleries were crowded to their
capacity during the two hours and twenty
minutes which the Senator from Texas
consumed. and the floor was almost equal
~ crowded. Very few Senators on either
side were absent from their seats; and a
large number Of Members of the House
were also on the floor to hear the speech,
having taken advantage Of the early ad-
1ournment of the lower body. due 10 the
death Of Representative Meyer.
Mr. Bailey's address was a logical pres
entation Of the whole financial question in
the present Congress, and he not only
discussed the Aldrich bill and his own
substitute therefor, but referred indirectly
TO the Fowler bill and the views which II
represents, He presented a strong argu-
ment, backed by an array OF quotations
from the public addresses Of great consti-
tutional lawyers and from decisions of
the Supreme Court against the issue of
money in any form by the national banks.
and in favor of purely government cur
reney.
Emergency Insurance Needed.
That some such insurance against
panics as Is proposed in the Aldrich bill
and the minority substitute should be pro-
vided. the speaker declared to be beyond
question. He argued for a more ade-
quate reserve law and for greater safe
guards than are at present provided
against the too rapid withdrawal Of cur
rency by the banks which issue it under
the present system.
In the course of his speech. Mr.. Bailey
characterized the position OF the PresI-
dent, as between the two political parties.
In a way that brought an outburst OF
merriment from his audience. He said
that the charge that the President has
been IN any degree responsible for the re-
cent panic had been made by men whose
minds are heated with resentment" and
declared that such a charge would not
bear close analysis While dlselaiming
any intention 20 become an aDologist for
Mr.. Roosevelt. he said that the Chief
Executive had demanded only that the
railroads deal justly with the people and
had shown no disposition to harass OF op-
press them
"lndiherent TO Consultations"
The President had. however frequently
exhibited a suDrcme Indifference 10 the
Constitution Of the country" and had
pursued what seemed 20 the speaker IN
be "a systematic and deliberate purpose
to impair the rights Of the States. and
TO concentrate all power In the Federal
government" Mr.. Bailey then remarked:
The good he has done in arousing pub
lie attention 10 certain evils Of corporate
management win give him an enyiabIe
place in the history Of his time: but the
harm he has done in dwarfing the States
and exalting the general government can
not be measured, and unless the tendency
which he has set in motion is arrested
ana reversed our splendid Federal svs-
tenn will ultimately be destroyed. We
have never before witnessed such a
mixture OF good and evil In any public
man. Before we have finished praisiug
him for some wise recommendation he
makes another so foolish that our praise
must turn TO censure. They tell me that
he IS brave. and I answer that he IS tust
rash as he is brave. They tell me that
nest. and l answer that he is Just
airy as he IS honest. He is
Too bad for blessing.
Too good for a curse:
wish in my heart
He were better OF worse
were much better. he would he
rat; and if he were a little worse
not obscure and confuse the
sues between US and our adj
s."
Causes OF the Panic.
mediate cause OF the panic. Mr..
Lii
New York. TO which the country
lad contributed by concentrating
serves in the banks Of that CITY.
KS OF the metropolis, he said, pay
on the country reserves. and I'm
make profit on them, lend them
purposes which are not always
.egl1 tie. until the result is that when
a financial shock comes the country banks
have per cent Of their legal reserves
in their own vaults. and 21-4 per cent in
the New YORK banks, with which to meet
their full deposit liabilities.
But behind all Other causes which CON
tributed TO the panic said the Senator
from Texas, was the extravaganza which
had and has the country in its grin. both
individuals and the government living he
yond the SAFE limit Of expenditure ITnon
TINS statement Mr.. Bailey made an an
peal Tor more careful living and moro
conservative administration OF the re-
sources Of the government. He CON
cluded his speech with a percratIon which
was marked by poetic thought and beauti-
ful phrasing, declaring his faith In the
American people and the ultimate triun,nh
of the system Of government outlined bv
the fathers Of the American republic.
Duty of Government.
Senator Bailey's speech was. in part.
as follows:
Under any financial system which wis.
dom Of Congress could construct II will
always happen IN a new and rapidlv de-
Veloping country like ours that extraordi-
nary situations will arise and extraordi-
hary provisions must be made 10 meet
them. No matter how we may differ as
TO the causes OF our panics. ii Is enough
TO know that they come upon US from
time 10 time; and it is too much TO hope
that We viii ever reach period when we
will be altogether free from such dis
turbances, and nothing could be palmer
than that volume OF currency which Is
entirely adequate for normal times and
under normal conditions is entirely made
Quate for abnormal times and under ab-
normal conditions.
SO far from regarding this bill or the
substitute rs apt TO produce an imitation
of the currency, 1 feel that if any mis-
take has been made at all. that mistake
has been made in limiting the amount TO
$500. 600, 600 instead of making il 81. O00.0O0
Coo No matter how much we might au
thCrize. the rate OF interest charged for II
would prevent the use Of any part of II
except under a pressing necessity, and
the amount used would be only such as
would be absolutely necessary to relieve
the money market. / am clearly of the
opinion that the larger the amount which
could be put in circulation the less apt
rr-ot,fI 10 q, raaI z