New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-10-16
SoCIaIIStiC, UnSound and Revo-
Iutlcnary, Former Leader OF
U. S. Senate Charges.
SEES A FINANCIAL PANIC
Pleads for Full Hearing Before
American People Before
Government Is Changed
Into Money "Au-
tocracy."

Nelson w. Aldrch, OF Rhode Island. for
merly chairman OF the Finance Committee
Of the United States Senate. In a two-hour
speech before the Academy of Political
Science at the Hotel Aston last night de-
nounced the Glass-Owen currency bill as
socialistlc, unsound and revolutionary. lie
said II was a reincarnation of Bryan's
greenback heresy and was opposed 10
President Wilson's earlier beliefs.
Senator Aldrich said he was aware OF
the marked tendency toward socialism
and the abandonment Of state rights, but
he said the Wilson administration cur
rency plan was the first effort to give a
government board the right to manage the
great business OF banking.
'If the effort is successful" ne said. 1T
viii! be the first and most important step
toward changing our form OF government
from a democracy to an autocracy. No
imperial government in Europe would
venture to suggest, much less enact,
legislation OF this kind"
The Senator cid he did not want to rob
Mr.. Bryan OF his victory, but he believed
he had a right to ask that the American
people should be given an opportunity
under the circumstances for full hear
ing upon the question before Judgment
was rendered adverse to their highest In
terests.
Mr.. Adrlch said that extreme press
ure' was being brought TO bear upon
Congress to enact the administration bill,
and that the reason given was that adop-
ton OF the bill was necessary TO fu!hl
promises made by the Democratic party.
He traced tho history OF the Democratic
party's attitude on the subject In earlier
years, and quoted President Cleveland AS
saying that the people OF the United
States are entitled to a sound and stable
currency"
The theory that the United States
should Issue currency i'm the form OF its
promises to pay" he said. "is a popu-
listic doctrine. II had 10 standing as a
Democratic party principle until the adj
vent OF Mr. Bryan into the party plat
FORM I'm spite Of the protests and against
the votes OF the men who had been most
prominent I'm the party councIls-mcn who
advocated loyalty TO the policies and prin-
ciplcs to which the party had adhered
throughout it's existence.
There has been no suggestion that an
effort was To be made TO revive the green
back heresy or To- adopt IN legislation the
rejected theories Of the Popuist party. The
Democratic candidate for the Presidency
was silent uron the subject during the
last campaign. and he has not. so far as
am aware. up to this time, publicly eX-
pres sed his approval OF Mr.. Bryan's ideas
with reference 10 note issue.
The large majority Of the American
people who favor sound money believed
that the question OF further greenback is
sues Was settled permanently by the cleo
tions Of 1876 and the following years"
In the proposal 10 create "A federal re-
serve board and 10 provide for the issue
OF government notes. Mr.. Aldrich sad,
the bill follows "A plan submitted by Pres
idcnt Tyler TO Congress In 1871 for the
creation Of an Exchequer Board. The
plan. ne said found no substantial sup
port I'm either branch OF Congress. ana
went down to oblivion.
The federal reserve board for which
provision Is made in the Glass-Owen bill
said the speaker, i'm reality would bring
about the creation OF central govern
ment bank. lie said the board was given
autocratic powers over business OF the
banks, powers that can be properly exer-
cised only by trained bankers. In emer-
gcncies. he asserted. the board would be
powerloss.
1t might be able to control elections
and insure the success of political
party" he said. but in times Of stress
II would have no power To preserve pub
lie or private credit. II would be able to
loan money to impecunious banking
friends or TO deposit government funds In
pet banks but IT would be unable to
assist a bank or community In time OF
serious trouble.
cit Is safe to say that the serious dis
arrangement of credits, the contraction
of circulating medium and the destruc-
ton OF confidence that would certainly
arise from transfer OF any considerable
amount OF the banking business OF the
country from the national to the state
system would end I'm financial panic
such as we have never seen In any coun-
try"