The Washington herald., 1908-02-15

the debate on the Aldrich bill, SO far,
has been to the effect that the bin and
the principles it involves are distastefuf
TO the majority of both Republican and
Democratic Senators.
That the bill will pass is possible, but
the reason for its passage will not be that
the majority of the members Of the
Senate approve it,
Senator Clay, of Georgia, who made the
principal address on the bill yesterday,
probably stated the true reason why the
majority of the members will vote for
it. when he said that not a Senator on
either side of the chamber dared TO pre-
sent bill which would strike at the
root of the trouble and reform the entire
currency system of the country, for the
reason that none of them was sure he
knew just what system should be substi-
tuted for the present one, which, as
prominent Senators in both parties have
declared In the course Of the debate, is
composed Of odds and ends of financial
legislation. each based upon some rsw
emergency.
Republicans Oppose IL.
That Republican opposition to the bill
/ is stronger than was az first allowed TO
appear is now evident Senator Hepburn
is opposed 10 the bill because it rro-
vides for the issuance of currency on the
basis of railroad bonds. He has given
notice that he win speak in opposition 10
this feature of the bill. On Thursday,
also. be let it appear that he was op-
posed TO tho elimination Of the section in
tue original bill which increased the ebb
limit of the legal bank reserves
Senator Clapp has shown TO some cx-
tent opposition TO the bin. and while re
has made no announcement OF the fact
in the Senate. It is understood that he Is
preparing a speech in opposition to GER
tain Of its features. Yesterday Sem
ator Lodge plainly indicated N the floor
Of the Senate that he is opposed to the
bill. and that he is a champion of the
central bank idea.
He added, however that he did not be-
Iieve it possible now TO make sweeping
changes in the financial system Of the
country. and that he believed the Aldrich
bin TO embOdy the best emergency meas
ures that could be taken under the pres
ent system.
Democrats rot Divided
Efforts that have been made 10 show
that the Democratic Senators are hope
lessly divided on the currency question
have been controverted by the four days
Of debate on the bill.
While the combined influence Of Presi-
dent Roosevelt and Senator Aldrich, with
the powerful banking interests in the
North behind them. viii probably secure
the passage Of the bill as the best method
Of meeting the immediate need. It is not
going too far 10 say that many Of those
who will cast their votes for the bill will
thereby vote against their earnest con-
victiOns
But there are many shoals over which
the bill must find its way before II passes
the Senate, not the least Of which is the
strenuous fight which Senator La Toilette
is preparing 10 make 70 have his railroad
valuation amendments inserted in il, and
that il will get through both Houses
without material amendment is. to put 1t
mildly, uncertain.
Senators Clay, Lodge. Teller. Hopkins
and AldriCh took part in the debate yes
terday, Senator Clay making a long and
able address against the bill, and main
tanning a running debate meanwhile with
MessTs. AldriCh Hopkins, and Lodge
Senator Lodge made a short extempo-
raneous speech. and Senator Teller gave
his views somewhat extensively.
Government Money the Best.
Senator Clay contended for the coinage
of gold and silver. and the issue Of paper
money directly By the government, the
notes TO be redeemable in coin. He con-
tended that we now have more than $780,,
100000 OF national bank notes and that
these notes indirectly are redeemable by
the government in gold He asked why.
is the government can authorize national
banks 10 issue notes Tedeemable in gold.
and the government stands good for the
redemption Of the national bank notes in
gold, the government cannot issue its
own notes without any embarrassment
The issue Of national bank notes redeem
able in gold by the government would be
as likely to embarrass the gold reserve
as United States notes issued by the gov
ernmeut redeemable in gold.
He maintained the good old Demo-
cratic doctrine that there should be 10
such thing as special fav0rs shown to
any one Our financial system was wrong.
Congress has delegated the power TO cor
poratiOns which never should have been
delegated. but should always have been
reserved to Congress. He maintained that
Congress possessed the sovereign right
to coin and Issue money, and when so
acting, TO keep in view the interests Of
the entire American people. but if it al
lowed certain corporations to issue notes
and circulate them as money basing this
circulation upon certain securities, which
privilege belongs exclusively to national
banking associations, then these associa-
tiOns enjoy favors that no other corpora
tions or individuals enjoy.
Clay Crfticises Congress.
Mr.. Clay said he had no criticism to
make of the national banks; they were
simply exercising rights and powers given
10 them by Congress. He severely criti-
cised Congress. however, for delegating
the sovereign rights 10 issue money 10
any one else. He declared that the
Aldrich bill would enlarge the powers OF
the national banks and enable the capt.
talists of the country, who have bought
up certain railroad, municipal. State. and
county bonds. to use these bonds as a
circulating medium, the government
standing responsible for the redemption
of such notes when issued.
He pointed out the fact that the owners
of these bonds, being allowed to use
them as basis Of money. would reap
a large reward by this favor of the gov
ernment.