The citizen-Republican. (Scotland, Bon Homme County, S.D.) 1???-19??, 1913-12-18
WOULD ESTABLISH
PARITY OF METALS

VOO.0
PARITY OF METALS.
Washington. Dec. 15.--A proposal
that the United States call q confer
cnce Of the powers to consider q world
wide basis OF parity between gold md
silver was brought up In the cenRid-
oration of the administration currency
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 system II
based on the gold standard, to parti-
cipate and that five delegates be APP
pointed from the United States when
any two nations had accepted the in
vitation.
A preamble set forth that rates OF
exchange between gold standard cOun-
and Central America fluctuated vio-
lently always to the disadvantage Of
the gold standard countries.
Senator Thomas commended that his
resolution called for consideration In
connection with the currency bill.
THE currency problem in any n
country cannot be satisfactorily settled
without settled 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, who continued his
speech on currency in the Senate today,
opened the debate this morning. He
devoted attention especially to the con-
stitutional and legal questions involved
in trying to force the banks 10 sub
scribe to the capital Of the reserve
banking system or surrender their
charters. He warned the democrats
they might expect this question would
go to the courts and be Fought through
the supreme court and he appealed to
them not to throw he financial sys-
tenn into confusion, which would result.
He urged public ownership as the way
to avoid this litigation.
Root Offers Amendments.
Senator Root presented amendments
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 infla-
ton.
ST think this bin has many beneficial
features which ought to be enacted
into law" he said. cit is unfortunate
that the circumstances under which the
bill comes before us hampers full dis
cussion. It is unfortunate that the
democratic aucus action on the meas
ure was not delayed until the bill had
been threshed out in the Senate. In
| prosecuting diuCItililtlilS we itDOI II
der the discouraging idea thai the bill
has been already passed"
Senator Root pointed out that there
was no limit on the mount of new
currency which could be issued under
the bill.
sThis provision" said he, referring
to the note issue section, SIS simply
authority for the further increase OF
our present ~greenbacks. He pointed
out that the country already has SS24,-
900, 900 of demand obligations against
which it holds 1891 200, 900 in gold and
silver. He argued that any further in
crease Of obligations should be au-
theriZed only on ample reserves.
Predictions of a big expansion of
business that would threaten an over
expansion Of credit and currency under
the new law were made by Senator
Root.
w started out to provide an elastic
currency bills his bill provides for an
expansive currency" sal the senator.
ut provides for a currency that may
be increased, always increased, but
there is no provision compelling it's re-
auctions"
Money Too Easy. He Save.
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 the currency.
There will be an activity of enter
prise that will absorb the maximum
which the reserves of the banks will
permit" he said. and 1t will require
the exercise. to the extreme. OF the
authority of the federal reserve board
to hold it in check"
Senator Root declared the new bill.
so far as specific restraints on the ex-
pansion Of the currency were con-
cerned, would not help to check panics
mo end ~interposed by US to the oc-
currence Of n of these periods Of
false and delusiye prosperity that in
svttably ends in ruin and SUFFERING"
1t a been the history of this and
other countries. he said. that panics
follow easy money"
THAT was the case In 1897. in 1eHy
in 1873. 1893 and In 1907 he declared
Senator Roots amendment wnnfd
tax all notes issued after the gold ra-
serve dropped belew so per cent. /,
would also provide that any new notes
issued after $soe,0oe,oo0 had been pul
out should q a special tax Of IL
per cent and that after $1,000, 900. 900 3
notes had been issued q tax of 6 pe,
cent. should be imposed on further n
sues.
This would allow the issue Of som,
$150,000,0 900 more OF notes than are nov
outstanding in the national bank cur.
rency,' said Senate Root, "and unde,
pressure would allow a further an.
pansion of 100000, 600 more if ia,
banks found that business needed tn,
currency badly enough to make profit.
able the securing of currency bv n,
payment Of the tax.
STILL SEEKING LOAN.