The Washington herald., 1908-02-13
OPPOSES BILL
Continued from Pee Four.

hh MEN vi O0G0 BA6A<s
Continued from Page -Four.
and fairly distributed. and that II is con-
centrated at points that dominate the
banking interests Of the land, and that
the people who need the money. and the
agricultural sections OF the country. and
the country banks, and the country towns
and mercantile and farming interests. and
honest business enterprises are all unable
to procure It when the necessity arises for
its use. and are all sacrificed to crafty
and appease the demands that are con-
centrated around the financial centers OF
the country.
I'VE will never have any permanent re-
llef until we strike at the root Of the evil
and reform our entire banking system
from It's foundation. in the interests Of the
American people against the special inter
ests. who. under our present laws, eSer-
else a controlling influence with the banks
and the Treasury of the United States.
So long as I have been in public life
have consistently advocated a system
that will make every dollar that goes
forth 20 the people worth a dollar IN
every Commonwealth Of the land, ard
that is a proposition that ] can never
yield or compromise upon in the slightest
degree.
Against Asset Currency.
Il desire Il distinctly understood that
while opposing the present bill, ! am not
in favor, according TO my present con
victions, of either a credit currency OF
an asset currency. and I am opposed tC
the whole conception OF a central bank
advocated by the Comptroller Of the Cur
rency, that shall regulate and control th'
finances Of the country
Il do not believe that with any REGARD
whatever 10 a stable currency that we are
in any position 10 adopt the principle Of
free interchange Of bank book credits anC
bank note credits, and I do not acced'
TO the proposition that every deposition
Of a bank should have the option of tax
ing his credit at the bank in such form a.
will best serve his convenience in eithc
a book credit subject 10 checks. or a cur
TenCy credit in bank notes When the tim
arrives, If it ever should arrive. for a dis
cussiOn OF this subject I will give in de
tail the reasons that influence me il
reaching the conclusions that ! now pre-
sent ] only want to be understood nov
| that ! am not opposing this bill becaus
/ favor an asset currency I know tina
other countries as a rule have no bond
secured currency such as We have. ant
that they are using a large amount o
credit currency but I cannot think that
would be expedient for US. for the presen
at least and for a long time 10 come, q
follow their example or 10 adopt thei
systems.
When We come TO the question OF
central bank ] am utterly opposed 90 Il
and let me say TO you that there is NJ
| parallel whatever between our banking
system and the banks under the govern
ments that have the central banking sys
| tens.
FayOrs Minority's Plan.
In an admirable address delivered b.
M Victor Morawitz a short lime ago be
| fore the Boston Economic Club, he state
| that any proposal to allow the banks O
| the United States 10 expand their not
| issues and their credits should be scru
tinized with the greatest caution. and
| agree with him upon this proposition
and If you want to know from me at "a
/ present moment what suggested plan ha
/ impressed itself upon NE with create
favor than any other. 10 remedy our pres
ent trouble and extricate US from on
/ present difficulties. ! would immediatel
/ discard the plan OF the American Bank
! ers' Association. and I would take hi
/ al ling 90 "a of fGr
national banks for the purpose OF enabHn
4 each member Of the association 10 issu
/ notes upon the joint credit Of the assC
/ ciated hanks with a reserve against th
! notes entirely distinct from the resery
+ against their deposit liabilities
This brings me nov TO my principe
/ opposition TO the bill and 10 questio
/ that has really been the cause Of m
/ taking any part whatever in this d.
/ bate and without which [ would not. pei
/ haps. have participated al all in the dis
/ cussion AT the present time, because
/ know that the bin OF the Finance Con
mittee will pass and that this debat
/ upon this occasion is both impracticabl
and Improbable. Mr. President. III
| great trouble is with the reserves
you were 20 ask me 10 find one Of IN
!
/ liquidation and depression that we al
/ suffering from / would unhesitatingl
say that it is the law that regulates an
/ controls the reserves. I would dignif
/ this branch OF the system II 7 called il a
| artifce or q fiction, because IL is simpl
an undisguised and stupendous deceptio
and fraud.
The Comptroller Of the Currency wa
was investigating the causes Of our pre-.
ent trouble. and while I agree with hin
in tracing the source OF the troub
largely to this cause. I regret that I car
not agree with him in the remedy that j
proposes.
Defects I'm Reserve System.
Now, let us look at this reserve systel
for a moment. because il Is as interestin
as il is senseIess and bewildering. tt
aggregate liabilities Of ali the reportiu
banks and trust companies OF the Unite
States amount TO over twelve thousar
million dollars, four times the entire Cur
rency Of the United States. and abol
twelve times the aggregate amount
currency held by all the banks and tru
companies deposited with reserve agen
under the law l have already state
that the combined stock of gold again
this line of deposits is a little over > p'
cent
Now, let US see how this reser1
scheme practically works in its dishone
and disastrous operation upon the RICH
of the American people. I shall take Il
figures of the Comptroller Of the Gu
rency. I viii take 100000 deposited