The Washington herald., 1908-03-20

peculiar light yesterday BY Senator la
Toilette, OF Wisconsin, when the latter
continued his speech in opposition TO the
Aldrlch bin.
Senator La Toilette quoted from a
speech which the Senator from Rhode
Island made last year in the Senate. dur
ing the debate on an amendment pro-
posed by Senator Nelson. OF Minnesota.
providing FOR the payment Of interest
By national banks on deposits Of govern
ment money, and for the use OF State
and municipal bonds as collateral Tor
such deposits. Mr.. AIdrich, he said. had
then declared in uEequivocal language
that no conservative banker would dare
invest in such bonds. as they were fsuctu-
atinS in character and too unstable 10
provide good security. On February 10
last. when the Senator from Rhode ISL
and made his speech in opening tie de-
bate on his currency bill, he had de-
eisred that such bonds were wort5y OF
acceptance as collateral for emergency
currency. a year ago. the Senator from
Wisconsin showed. Mr.. Aldrich had stood
up for government bonds as the only
proper security for the issuance OF gov
ernment money and now he ccntended
against HIS own dlctum.
Wedge for Railroad Bonds.
Senator La Toilette declared that Al
though by a 1ack-in-the-box withdrawal
railroad BONDS had been eliminated from
the bill. the use Of State and municipal
bonds as basis for emergency currency
would be simply a wedge. and in a year
or so, II the Aldrich bill was enacted.
Senator'S would witness the spectacle Of
the returnsof railroad bones aS a basis
for such currency. driving that wedge
home" and finally the bonds OF ali sorts
OF public and simi-pubnc corporations
would be knocking al the door OF the
Treasury. and. he intimated. not without
hope OK getting IN.
Senator Clarke. Of Arkansas. asked Mr..
La Toilette some questions regarding the
present alleged use OF bonds OF railroad
companies as security for deposits OF
government money. Mr. la Toilette re-
Piled that such bonds were being used as
additional security, and that they were
not all trst mortgage bonds, either. This
led him 10 an observation regarding The
idea which he has champloned, that the
physical value OF railroads should be
determined as "A basis for their securities
as veil as FOR their rates. and Mr.. Clarke
suggested that he 80 more deeply into
that question.
II would take very little tempting to
persuade me 70 do SO" replied Mr. La
Foilette' and II / felt that might ex-
pect the attention and interest OF Sen
etors on this noor I would 20 very deen
into IL IL fact, I am just aching 10 DO
So"
VIII Speak Again Monday.
Mr.. Clarke assured him that he for one
would be very glad 10 hear the Senator
from Wisconsin discuss the question. and
that be believed there were many others
who felt as he dld. Senator La Toilette
than said that as there seemed 10 be no
dissent" from the statement Of the Sena-
tor from Arkansas. he would 90 into the
valuation question in all it's phases. and
gave notice that he would speak on the I
matter on Monday. when he VIII conclude /
his speech on the Aldrtch bill.
NJ. la Toilette repeated In the begin |
ming OF his remarks yesterday. which 1
were q continuation OF his speech begun !
on Tuesday, that the financial panic OF /
october last had been brought on inten- |
tionally by certain industrial and banking 4
interests Since he had spoken last. he 1
said. some matter had come 10 his atten- /
tinn which confirmed that view he then
read a letter from John Paddock. nresi- |
dent Of the Washington Life Insurance /
Company Of New York. TO +. A. Whit /
tier the company's agent at Newark, Y 1
J., telling the agent 10 send all his funds (
above bank balance OF 500 to New York. 4
This letter said Mr.. La Toilette. taken I
in connection with the information he I
had that at least two other great New
York insurance companies had sent sim /
liar instructions 10 their State managers
the letter which he read having been /
written in June 1s0T-disclosed the exist /
ence OF a concerted plan TO cause a money I
strirSency several months before the /
panic began.
Starts Boom I'm Senate.
Here Senator Gore interrupted. He said 1
he had listened 20 Mr.. Ia Follette's /
speech the other day, and approved T.
II mean it in a complimentary spirit" /
he said. when / say 1 think he is the I
best Democrat and the poorest Republi- /
can in the Senate OF the United States. I
II I were a Republican. I would be will 1
ing TO support him for the Presidency. |
i
20 support him for the Presidency.
las I understood him, he regards the I
action OF Mr.. Morgan and Mr.. Rookie /
feller. in rushing 70 the assistance OF the /
banks, as part OF an effort 10 redeem 4
their fallen regulations and to shut out a |
third term for the President 1 under !
stood that he meant that they pulled 4
OF q tragic farce I heartily agree with /
the Senator that Mr.. Morgan and Mr.. /
Rockefeller pulled of panic, and then
stopped 1t. seeking to redeem their fallen /
fame.
Now, III ask the Senator IL he doesn't (
think that President Roosevelt and Secre- /
tary Cortelyou were star actors IN that 4
or at least were ardent ad- 4
mirers after the play was over?''
Mr.. Gore read the Presidents letter 70 /
Secretary COrtelyou. complimenting him
for his aid in stopping the panic. and
those substantial and
business men who in this
crisis have acted with much wisdom and
public spirit"
La Toilette ReprOves Gore.
MY purpose" resumed Mr.. Gore. "is
to FIX the responsibility on all the actors
I believe that Morgan and Rockefeller d.
serve the censure OF the Senator, but |
do not believe that they deserve the con-
gratulations OF the President OF thel
United States. especially when they tried
to influence the third term movement"
II deprecate the Injection i.1to this dis
cussion OF the partisan spirit which the
Senator from Oklahoma has injected into
IT," replied Mr. Ia Toilette. somewhat I