Las Vegas optic. (East Las Vegas, N.M.) 1908-1921, 1913-12-13
WOULD CALL A CONFERENCE
SUGGESTS THE NATIONS OF THE
WORLD BE INVITED TO SEND
REPRESENTATIVES
ROOT HAS RECOMMENDATION
URGES THE ADJUSTMENT OF
CLAUSE IN ACT PROVIDING
FOR GUARANTEES

| Washington, Dec, IA proposal
that the United States call confer
ence of the powers to consider a
worldwide basis of parity between
gold and silver was brought up in
the consideration of the administra-
ton bill today when Senator Thomas,
democrat, introduced a resolution pro
posing that President Wilson be au-
thorized to invite England, France
and Germany, whose monetary sys-
tens are based on the gold standard,
to participate, and that five delegates
be appointed from the United States
when any two European nations had
accepted the invitation.
A preamble set forth that rates Of
exchange between gold standard
countries and the silver nations of
South ana Central America fluctu-
ated violently, always to the disad-
vantage of the gold standard coun-
tries.
Senator Thomas contended that his
resolution called for consideration in
connection with the currency bill.
"The currency problem in any ono
aoantny annat at
tied without considering currency
conditions throughout the world. ),
said he.
Efforts for an agreement for an
early vote on the bill met with little
success today. Senator Cummins. re
publican. continued his criticism of
the mesaure.
Senator Root presented amend
ments to eliminate the guarantee Of
deposits and revise the note issue
section to provide for a graduated tax
on reserve deficiencies in order to
prevent initiation.
Il think this bill has many bene-
ficial features which ought to be
enacted into law" he said. 1T is
unfortunate that the circumstances
under which the bill comes before us
hamper full discussion.
ut is unfortunate that democratic
caucus action on the measure was
not delayed until the bill had been
threshed out in the senate In pre-
senting amendments we labor under
the discouraging idea that the bill
has already been passed"
Senator Root pointed out that
there was no limit on the amount Of
new currency which could be issued
under the bill.
This provision" said he, referring
to the note issue section, lis simply
authority for the further increase of
our present greenbacks. rBod 81
He pointed out that the government
already has sS24,0OO,OOO of demand
obligations. against which it holds
s891OOO, 900 in gold and silver. He
argued that any further increase of
obligation should be authorized only
on ample reserves.
Predictions Of a big expansion Of
business that threatens an over-ex-
pansion Of credit and currency under
the new law were made by Senator
Root.
s'We started out to provide for an
elastic currency, but this bill pro-
vides for an expansive currency"
said the senator. 1T provides for
a currency that may be increased. al
ways increased, but there is no pro
vision compelling the reduction"
While the federal reserve board,
Senator Root admitted, had discre-
tionary powers to limit the issue Of
currency, SO far as the proposed new
law itself is concerned, there was no
specific restraint on the constant in
crease Of the volume Of currency
There win be an activity Of en-
terprise that viii absorb the maximum
which the reserves OF the banks viii
permit he said, eand it will require
the exercise, to the extreme. OF the