Arizona republican., 1913-12-14
Administration Measure, Says the Toga Wearer from New York, Could Bring About Imitation Re sulting in Catastrophe
THEN REFERS TO
 BRYAN "HERESIES"
Sharp Differences of Opin- ion Appearing in Debate on Floor and Corridor Conferences Means Delay in Final Vote in Senate
IAssoc1ArED PRESS DISPATCH

ASSOCIATED PRESS D1sPATCH1 WASHINGTON, Dec. 13.-The ad- ministration currency bill was sub- mitted today to a severe arraign- ment by Senator E,lihu Root of New York He declared the measure,
 without statutory limitations, could bring about an imitation of the cur-
 rency which would result in a cat astrophe"
 The note issue of the bill,' he
 said in dramatic peroration, "ex-
 hibits the opinion of the great leader
 of the democratic party whose fin anciaI heresies have twice been repu- diated by the American people"
 The only check to inflated currency,
 Senator Root continued, was in the hands of a federal reserve board, ap-
 pointed under the same influences which put into this bill these false
 theories and bound to proceed in ac- cordance with them.
 The bill was defended by Senator Pomerene of Ohio, who opposed wig orously the proposal for government ownership and control of proposed
 regional banks and declared the bill will relieve any financial depression
 now existing.
 Sharp differences of opinion ap-
 bearing in the debate on the floor and marked disinclination to com
 promise which was evident in the corridor conferences between demo- cratic and republican leaders, dissi-
 pated hopes for an early vote on the
 bill which have prevailed for several days. Republican senators who would summarily end the debate if they
 could secure the elimination of cer- tain features of the bill, including the
 proposal of guarantee of bank de-
 posits and the redemption of the proposed new notes in gold or lawful
 money. met little encourag cement and
 the leaders almost gave up hope for an early vote.
 Senator Root in opening his attack on the bill. presented an amendment calculated to place a restriction on the issue of the proposed government note by taxing the reserves held against the notes when they fell be- low fifty per cent by imposing a grad uated tax on issues above S400O0,OO0 and $12O,0O0O 900. Some restrictive amendment. he declared. is absolutely necessary. He asserted that under the ] bill presented by Senator Owen. it ! provided for "eaSy money for every l body and that anyone who could draw and sign a bill" could secure currency. An imitation of credit, he said. could be prevented only by ac- | tion Of the federal reserve board" European interests are watching us closely said Senator Root. | France will never forget her attempts ! to issue government money. Great Britain still rememb bers her imitation l troubles. Long before the crash comes. the people of commerce and ! finance in Europe will have seen it's i approach.
 i But a very little loss of confi- dence will not merely stop foreign | investors from buying American se curities but will bring tumbling back | to this country thousands of millions 1 of our securities. They will have to i be bought or the industries they rep resent. the banks holding similar se- curities and the American investor 1 carrying his business on similar se- curities. will go down to ruin. | If we enter on this career of fn- ! flation. will do it in the face of a i clearly discernibIe danger, which it is realized will result in a dreadful
 catastrophe"