Manchester Democrat., 1911-01-25
SPECIAL WASHINGTON CORES.
PoNDENcE.
By Clyde H. Tavenner.

en- though both House of Congress
ratify it.
Figuraively speaking, the president
has made up his mind to give Ariz-
ona good sound spanking. He feels
that in incorporating in its constitu-
ton the initiaive referendum, and
recall, Arizona has been guilty of the
greatest impertinence. Just for
doing that it is probable that Ariz-
ona will remain territory. as long
as Mr.. Taft occupies the executive
chair at least if It insists upon the
initiative, referendum, and recall.
The law requires that the constitu-
tions Of Arizona and New Mexico
must be approved by the president and
congress before the territories may
become states. BY Withholding his
approval, the president can force the
territories to wait until he gets ready
to give them statehood.
The Arizona recall provision is es-
pecially progressive, in that it ap-
plies to judges. The people are in q
position to discharge from office any
dishonest public servant, administra-
tive or judicial. who fails or refuses
to represent the people as they want
to be represented AS is well known,
the president is exceedingly sensitive
about all matters affecting the judi
ciary. The presidents friends believe
he might possibly be induced to ac'
cept the initiative and referendum
|but that he will surely stand in the
way Of statehood for Arizona If 1t IS
proposed to have judges subject to
recall.
i All republicans, however, do not
share Mr.. Taft's horror OF the recah,
six republican senators having only
recently sent telegram to President
Hunt, of the recent Arizona constitu-
tional convention, to the effect they
would work with Senator Bourne Of
Washington in the struggle to OBJ
tain approval for the Arizona consti
tuition, The telegram reads: Ihe
undersigned wish to assure you thai
) the popular government features o.
the Arizona constitution, particularly
the initiative, referendum and recall
will receive our hearty support. Sen
9 ator LaFolette, Wisconsin; Cum
!, Minis, Iowa; Bristow, Kansas; Clapp
y Minnesota; Dixon, Montana; Brown
i, Nebraska"
Three newly elected governors hav'
just given their emphatic approval Z
initiative, referendum and recall
Foss, Democrat, Massachusetts; Os
born, Republican, Michigan; johnson
e Republican, California. Two COVER
nors indorse the initiative and refer
endum-Dix, Democrat, New York
Deneen, Republican, Illinois. Thii
Hist will grow to larger proportions.
81 It was only three years ago thai
! Col. Roosevelt was violently hostile 4
1.-THE initiative, referendum and recall
They were incorporated in the Okla
homa constitution, and Presiden
e Roosevelt funed and stormed at
q great rate over it. He did not have
. the power to reject the constitution
however, and had to swallow it. T.
head off similar constitutions by Ari2
I ona and New Mexico, congress re
J sorted to a joker which prevents tht
h people of Arizona and New Mexico
from choosing the kind Of constitu-
ton they desire.
: A Near Central Government Bank.
Ell 1t develops that Senator Aldrich''
o proposed Reserve Association 9
America" and the much denounce'
i central government bank are siste
schemes, both having as their madl
if not sole object the placing Of tn
money supply Of the country in tn
hands of Wall street. "The goot
results which they (the government
banks Of Europe) obtain can, be
lieve, be reached without the crea-
ton Of such a central bank" suggest
Senator Aldrich. This leaves th
impression that he does not have
d central bank in mind. But nobod.
r can read his plan in detail withou
> realizing that it is a central banl
of issue that he Proposes.
1t is to be the depository and fisca
u agent of the national government. ]
el is to have the sole issue power. It
g may receive deposits from those ma
4 tional banks which are stockholders
in it. It shall establish branch banki
which, just as under the central gov
ernment Bank scheme, will rush thei
p local deposits to the central bank
t. thus taking the money out OF th
community in which it would other
wise be loaned out for investments d
= home enterprises. 1t may buy ant
r sell government and state securities
jel and foreign government securities
e and good coin or bullion. 1t may re
4. discount paper for banks depositina
it. 1t may buy acceptances of sub
- stantial houses-and no bank want
any other kind. In Short, the AID
IS rich reserve association is bank
W with immense privileges and powers
" but without the name of bank. Wal
is street will control it. It is obviou
II that the words Central Bank" wer
vi ommitted because of the prejudice
u against such an institution among tn
lg country banks. Uncle Sam once trie
I'd a central bank. 1t was manned an,
Is manipulated by politicians, and
or brought panic on the entire coun-
a. try. Adrich's flimsy misrepresenta-
,e ton will accomplish but little, how
1t ever. An upward revision is not
hit downward revision simply because
some one says it is. A central ban
is none the less central bank
Us called ''the Reserve Association c