The Birmingham age-herald., 1913-12-14
Declares Measure Without
Statutory Limitation OF.
Issuance of Currency
SENATOR POMERENE
LEADS THE DEFENSE
Sharp Differences of Opinion Mark
Debates Yesterday, While Dis
inclination to Compromise
Is Evident

Washington, December 13.-The admin
istration currency bill was submitted TO a
severe arraignment in the Senate today by
Senator Elihu Root of New York. He de-
clared that the measure without statu-
tory limitation on the issuance of che
proposed new currency, could bring about
an imitation of credit that would result
In dreadful catastrophe" The note Is
sue section of the BILL he said, in a dra-
matte peroration, exhibited the opinions
of very great leader of the democratic
party. whose financial heresies have twice
been repudiated by the American people"
The only check to an inflated currency.
Senator Root contended, was in the hands
of federal reserve board "appointed
under the same influence that put into
this bill these false theories, and bound
to proceed In accordance with them.''
The bill was defended by Senator POM
eren of Ohio, who opposed vigorously
the proposals for public ownership and
government control of the proposed re-
gional banks, and declared that the bill
would relieve any financial depression
now existing.
Differences of Opinion
Sharp differences of opinion appearing
in the debate on the floor and a marked
disincllnation to compromise which was
evident in corridor conferences between
the democratic and republican leaders dis
sipated the hopes for an early vote on the
bill which have prevailed for several days.
Republican senator's who were willing
sumarily to end debate If they could Sc
cure the elimination of certain features
OF the bill, including the proposal TO
guarantee bank deposits and the redemp-
ton of the proposed new notes in gold or
lawful money" met little encouragement,
and the leaders almost gave up hope for
an early vote
Senator Root, in opening his attack on
the bill presented an amendment caIcu-
lated to place restriction on the issue
of the proposed government notes. BY
taxing the reserves held against the notes
when they fell below so per cent and by
imposing a graduated tax on issues above
s9Oo,o0O0o0 and loo. 100000 Some restrcttsse
amendment, he declared, was absolutely
necessary.
He asserted that the bill as presented BY
Senator owen provided for easy money
for everybody and that anyone who
could draw and sign a bill' could secure
currency. An imitation of credit, he said
could be prevented only by the action of
the federal reserve board.
European Interests Watching
European interests are watching us
closely" Senator Root said. France viii
never forget her attempts to issue gov
ernment money. Great Britain still re-
H1tf
fore the crash comes the people of COM
merce and finance In Europe will have
seen its approach But very little loss
Of confidence will not merely stop for
eign investors from buying American Sc
curities, but will bring tumbling back to
this country thousands of millions of our
securities. They will have to be bought
or the industries they represent. the banks
holding similar securities, and the Amer
lean investor carrying his similar securi-
ties, will go down to ruin Europe sent
back 5000 100000 American securities IN
1907 and that was one of the causes of
trouble. Last September $500, OoO, 900 were
sent back 1t will take but little loss
of confidence to bring this whole struc-
ture tumbling down on us. The securities
would have to be bought and the gold
supply of this country would go to pay
for them.
'If we enter ON this career of infia-
cernible danger, which, If realized. will
result in a dreadful catastrophe.
Heretofore. when financial stress came.
there has always been the United States
government reserve, strong TO lend its aid
But this bill proposes to put in pawn
the credit of the United States and when
need comes. it Is the government of the
United States that is to be discredited
by the initiation of its demand obligations
which 1t cannot pay
Thinks Principle False
Concerning the proposal that the gov
ernment should allow a body of appoin-
tive officers the power to bring about
this imitation. Senator Root said:
This provision exhibits the opinions of
a very great leader OF the democratic
party, for whom | have a strong regard.
respect and admiration, and in whose SIN
cerity of purpose and good faith | be-
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