The Washington herald., 1908-03-07

The Aldrich BILL as a measure intended
fer temporary relief only. received the
Endorsement Of Senator Depew. of New
York. who spoke yesterday for over an
hour in the Senate on the financial sys-
TEN Of the country.
Mr. Depew declared that he fayors
central bank and an asset currency. and
he indicated that the Aldrich emergency
currency plan meets his favor only as a
means of safeguarding the country
against aaother financial disaster until
an adequate and scientific system Of cur
rency can be evolved for the United
States
The Senator from New York warmly
championed New York City, and while
he declared that he would aid in any ef-
fort to curb stock gambling that did
not strike at legitimate business interests,
he endeayored to show why Wall street
could not be torn up root and branch.
as is the apparent desire of some men,
bers Of the Upper House Of Congress
It Is, Mr.. Depew said, the chief market
OF the country and could not be dis
pensed with.
Wall street Not so wicked.
In an elaborate explanation Of the
methods OF the street. he declared that
actual property is dealt in there. and
that nothing that could happen in Wall
street would bring about a currency
panic in the country for the reason that
the bulk Of the exchange is done on
credit, with only sufficient cash mar
gin TO cover the transaction. This
method. he said. is used in every COM
mercial center in the country, and is
the life OF trade. as there is not enough
money in the United States to conduct
the business OF the country on a strictly
cash basis. II men did not avail them
selves Of their credit, he said, business
could not possibly be done in any vol
ume.
Vote Seems Far Distant
Senator Clarke. of Arkansas. gave no
tice that he will speak on the Aldrlch
bill on Wednesday next which disposes
OF the possibility that a vote will be had
on the bill Eext week. Senator Bailey.
Of Texas. who is leading the minority in
the discussion Of the currency question.
VIII make a speech on Monday. taking
the floor at o'clock, and Senator La
Toilette has been promised two days>by
the chairman Of the Finance Committee
in which to make a speech upon his rail-
road-valuation amendment Mr.. Bailey
having Monday and Mr.. Clarke Wednes-
day, Mr.. la Toilette could not secure two
days next week unless he should take
Thursday and Friday. so that there is
no chance. il present plans are not
changed. for vote before the following
week. Il is understood that Senator Nc
Laurin intends 70 make a speech on the
Dill. so that the debate may continue We'll
into the week after next
Leans Toward French Plan.
Senator Depew. in his speech yesterday.
said. in part:
THESE recurring disasters, so universal
and so terrible. must be caused by def
cheney somewhere In our system. We
have a larger per capita currency
any country in Europe. except France. /
and yet money-mere currency-has been /
for months commanding premium. /
and in one Of our panics gold was
raised to 30 per cent The German. |
French, and English fnanciers say such |
conditions are impossible with them. |
The are unanimous In the opinion that /
their safety and our peril are because |
they possess central banks with power to /
issue emergency. currency. while our cur
rency is rigid and iuelastic, and there Is !
and can he no unity OF action among our |
6,6CO independent banks.
We have a currency which we cannot |
expand. except by processes too slow
TO do any good. and which cannot con- /
tract when demand for currency relaxes. |
We have TO maintain national debt to |
have any currency. and we have to re- |
tain our present system to furnish a |
market for government bonds in national |
emergencies at a rate which makes them |
from Is to . per cent higher on the same /
interest charges than those Of any other |
country"
He Defends New York.
Senator Depew warmly defended New |
York against recent attacks. Country /
banks which flooded that city with their
money in order to get interest on IT were |
he said. the real causes Of the panic. as /
the plethora of money created re-
dundancy which stimulated speculation. /
Then an emergency for funds to move /
crops arose in the West. and the result /
ing withdrawal OF funds sent interest /
rates up, put heavy strain on the
banks. and brought about a crisis He |
continued:
There Is, unhappily, always specula-
ton, and at times dangerous speculation, |
in the New York exchange but so there !
is in the exchanges Of London, Paris, /
Berlin. Frankfort. and Vienna The
movement of trade would stop and all /
interchanges and sales Of products cease /
If there was not a central market, where /
people with goods could always and a |
purchaser. II is in a sense the ocean of |
credit which supports the vessels OF |
commerce. great and small
II fully realize the evils Of gambling. /
whether in stocks or grain, or ir any /
other way. It's decentralization and perils /
are patent TO everybody / will aid in /
every effort TO suppress it which does not 1
involve embarrassment and ruin to legiti- |
mate business. But In proportion to the |
volume of its business and the magnitude |
OF its transactions there is as little OF II |
IN New York as anywhere else in the |
United States. and il is under better con- |
troll We cannot abolish doing business
on margin Of cash and the balance on |
credit. Every successful business man in |
the country has risen by the use Of his |
credit All merchants. manufacturers.
and bankers would work within very
narrow limits II their transactions were |
confined to their cash capital.
Central Bank Impossible Now.
Alexander Hamilton, the greatest orig
inal genius this country or any other
ever knew, in placing our chaotic finances
upon stable basis. brought into exist
ence among other things a central na-
tional bank. Andrew Jackson, who hated
all banks. not only destroyed the central
bank, but left n profound impression
against it upon the minds OF his country