The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1908-02-19
I'm ADVAHC E.
THE POPULAR (D ALDRIcH BILL.


realize the serious attempt now being
made through the agency of the AL
drich currency bill to fasten more Sc
curely Wall streets shackles on this
already trust ridden country. we pre-
sent a part of the letter written by A.
o. Crozier and addressed to The Sen
ate and House of Representatives.
Such a law would start agitation
that might take from national banks
the right under which they now pro-
fitably issue and loan to the people
nearly $7OO,OOOOOO of bank note cur
rency, and perhaps jeopardize the gold
standard itself. Will such banks
grasp for more and probably lose what
they already have;
For years congress refused to re-
peal the provision prohibiting national
banks contracting the bank-note cur
rency over S3,000,00o a month. March
4. 1907, this was raised to 100000.
This was too dangerous a power to
be left at the option of the banks.
They might contract rapidly to raise
interest rates and force down prices.
THE biggest Joker in the Aldrich
bill is the fact that this restriction is
wiped out entirely. 1t makes it pos
sible suddenly to contract and destroy
the entire $7OO,OOO,OOO bank-note cur
rency and also the $5O0,OO0OOO emer-
gency currency, or a total Of 81 200
100000 of currency used by the people
as money. Sudden contraction of but
$5O,OOO,OOO available money by bank
depositors recently caused fearful pan
ic and alarmed the whole country.
What would happen to the country
when the strangling contraction of
more than billion dollars, about half
the available money supply of the
United States, the active and conven-
lent half was begun?
But the consent of the secretary of
the treasury must be had, it is said.
The language of the bill on this point
is doubtful. But even if he must
consent are S5,OO0.OOO of people going
to risk their all not alone on the hon
esty, but on the Judgment of one man,
a mere appointed official not respon-
sible to the people? Without intend.
ing personal allusion, it is proper to
show that most treasury officials leave
the public service and It's humble sala-
ries to secure and enjoy positions with
Wall-street banks, paying $4,000 to
$4,000 salary. They could not do
hi 1ntt IN, xNfFt
should displease such interests.
"The only way to make this emer-
gency currency elastic more than in
name is to have the Government issue
1t direct to national, state or savings
banks, trust companies, corporations
and individuals. to all who deposit the
required bonds as security and pay
the high tax. The supply and demand
would control and it would be impossi
BILE for interest rates ever to go above
say 8 per cent anywhere. The volume
then would automatically expand al
crop time and contract afterward.
But the Aldrich bill grants to the
national banks alone an absolute mo
nopoly of the entire half-billion dol
lars of emergency currency. Other
monopolies are made crimes by law
The government on its own initiative
cannot issue one dollar of emergency
currency. Not even in response to {
general public sentiment or wide bus
Hess distress. 1t must wait for ma
tional banks to act. These will not dC
so except when actually menaced by
runs. So it is in no sense an elasti,
currency for general benefit, such al
the country was educated to expect.
Ordinary country banks would no
profit at all. Only the big Wall-stree
banks are situated to borrow thi!
emergency currency from the govern
ment at q per cent. and loan it to tn,
gamblers of the stock exchange at II
per cent. to 200 per cent. The few bi.
operators, now the masters of Wal
street dominate the big banks, trus
and insurance companies railroad
and other industries. Their individ
ual fortunes aggregate over a billion
of dollars. They control institution
with $4,000, Oo0O 900 more of loanabl
assets. They dominate enterprise
with outstanding securities exceeding
twenty thousand millions of dollars.
These few men comprise the hug
pools which artificially sustain an,
manipulate all large issues Of securi
ties. putting the quotation prices u
and down at will and for their privat
profit, Their identity and transac
tions are hidden by the stock exchange
This makes them more daring, rockies
and merciless. Every man who buy
even one share of listed stock or on
bond. whether on margin, speculation
or for investment, is blindly playin
directly against this vast Gibraltar c
financial strength, this crafty, crooke
and soulless power. Ultimate loss
as certain as death to those who cor
tinue to dabble in Wall street
These lawless and relentless mas
tiers of Wall street are trying hard t
promote the legislation found in tn
Aldrich bill They will be the prime
pal beneficiaries. 1t will give them
strangle hold on the money supply.
will vastly increase their danserou
powers. 1t will enable them 10 caus
panic at will. It will multiply thei
political power. BY controlling tn