The Montgomery advertiser., 1908-04-06

MT. c. Grosvenor Dave. secy, Mont
 gomery, Ala.
 TExtract from The Congressional
 Record. tMarch 2sth) of Senator
 Johnston's views on the Aidricn
 BILL i,
 "Mr. Johnston said: Mir. President, l wish to explain why I shall vote TOT the bill, and I shall do so very orieny' As understandtft the bill is not ii- tended to revise the general banking laws of the United States. It's man. if not sole, purpose Is to provide an emergency currency to prevent the danger of and disasters occasioned py panics. It offers some defense asalnst distrust. It does not change any prm ciple or policy Of sxiso,ms ansst,on. lT It meets no constitutional objection. IT if presented an issue as to wnetner hanks should supply the currency III stead of the Government, that Woulu prevent me from giving 1t my suppoI. hut no such issue is involved oy uhis bill as it makes no change III eAs'ne @ law as 10 the method of issue. IL en- Iarres the potential issue, broaoens ;ss basa. and compels the banks en- towing it's privileges, as to this issue, 70 sax interest to the Government TOT lp0 sse of this temporary currency.
 Hwere we to attempt to revise the whole banking system of the unltsu states. and in doing so, to consioer .e sae many neritorious amendments tnAs hava heen suggested on this noor ahu a1sawhere. 1t would require months ol Snhste with little prospect or agIee s.r~,,+ ana certainly with no nope that tbe views of the minority wouio pie vail. A-L.rxas Mir. f clH tain inc cause of the panic oeloIe traatinr the disease. That may pc true hui I fear that by the time the Senate reached an agreement on thiS nuestion the patient would De osau. ssTbere are few who do not beheVe that some bill is necessary. The pros tration of our industries, the great ae- cline in value of all classes of property tha distress of the unemployed, the shadow of the empty dinner pail de- slsard aone Iegislation to prevent re- n,,rrence of these conditions. The real isaue ia whether this bill or the FOWL ar bill shall be enacted I think there are few on this floor who Wouio lavof tha latter measure, putting in the pow ar If inc banks to issue a currency ana ta contract or infiate 1t at their pleas ure and profit, and on such security as +hAy themselves should select It seems that the banks generally prefer the Fowler bill. They claim that the rats of interest in thls bill would prevent them from making a profit out or tne enereency currency. They seem 70 Sorref that in the great financial cen 4ers the rate of interest paid by thelr custoners during the recent panic was snvwhere from 20 to 100 per cent. The Chairman of the Clearing House As sociation. Mir. Gilber. favors the FOWL ar bill. claiming that the interest In fh4s bill is too high, and yet ne says tbe hanks took out clearing house loan cartihcates, paid per cent Tor the rriviIere. and loaned them to their customars at the same rate. If that be so if they were willing to pay per cant In the crisis for substitute Tor currency having circulation only In It's immediate locality, why should they not be willing to pay as much for real currency that would circulate all over Inc country? But this bill and the is- qua of currency therein authorized is not intended for the benefit of the hanks. but is intended to be Issued for the general good. to preserve conf dance and to enable the banks to pay their depositors.
 'Mr. President. the Republican party has heen in control of this government for over forty years. and. except du. ring a brief period, it has had the ex- ecutiye and the majority In both Houses of Congress. We have had du- ring that time three disastrous panics, two when that party had complete and unchecked control. It has had the amplest opportunity. If it has the abli- ity for the past eleven years to re- form the currency and to mitigate or prevent panics. It claims ability to nrodYca nrosnerity and to keen the