The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-12-14
Would Cause Europe to
Lose Confidence in
American System.
YELLED ILLUSIONS
TO HIGH FINANCE
Pending Currency Bill, He De-
clares, Puts in Pawn Credit of
United States, and Prevents
Relief From Government
When Emergency
Arises.
Especial TO Tho Times-D,spatcl

Washington. December 13.-Senator
Root. CT New York, in tho Senate to.
day. delivered q speech dealing with
the OWLS OF imitation IN the Demo
cratic currency bill. that attracted
the close attention Of Senators on both
sides OF the chamber.
It was by far tho most important
and eloquent address thus far made to
tho country on this live Issue. At its
conclusion the New York Senator was
warmly congratulated by associates OF
both parties. Senator GallIngcr, mi
nority leader. issued statement in
which he practically placed Senator
Root in nomination for tho presidency
as tho ablest advocate OF sound
economic and financial doctrines in this
country"
Mr.. Root made several yelled aliu-
slons to high finance that plainly APP
piled TO the operations of Morse and
tho HeinZc group OF hnancicrs. He de-
clared that the terms of the admins
tration bin would permit an Initiation
or the currency UP to tho enormous ag-
grcgate OF sl.s0oooc.oo0.
Pnrty VIII Miss Chance.
Senator Gallinsers political state
ment was as follows:
The remarkable speech on the cur
rsncy question delivered by Senator
Root to-day, stamps him as the abiest
advocate OF sound economic and fnan-
cial doctrines In this country His
wonderful powers OF analyzing the fun
damental problems that lie at the
foundation of our governmental struc-
;ure were never more marked than
"a day. His discussion OF the financial
bill was brilliant. Interesting and un-
answerable. Unless the Republican
party dominates Senator Root as their
next candidate for the presidency Of
the United States, they will miss tho
greatest opportunity that has ever pre-
scented itself TO that party"
The New York Senator warned the
country that the imitation possible un-
der the administration bill would re-
suit In u loss OF confidence in Europe
in the soundncss OF the American IL
nancial system.
The tendency to reduce rates and
add TO the duties and burdens OF our
transportation companies, to push up
their operating expenses through tho
demands OF labor and Increased cost OF
materials. has a diEqu.eting effect upon
European investors and stockholders"
said Mr. Root. This Is supported 10
some extent by, those roads that re-
Gently have either reduced or passed
their usual dividends.
Congress should realize that the
holders of the great bulk OF American
securities are going to be keenly alert
regarding the soundness OF the flnan-
cial policy or thus country. Once start
run on us. and il would take very
little. not merely 10 stop foreign in
vestments. but to send our stocks tum
bling bnck upon us where we must
buy them and pay for them in gold.
And all that gold would go to Europe.
Before October. 1907. more than $780,
0e0, 600 of securities were sent back TO
1t III
were not going right. Last September
over s200,o0o.o00 came over on the
Judgment Of some people that II would
be wise to reduce their risks.
business Ii Threatened.
II am in favor OF doing away with
the speculative money in New York.
But that Is quite different matter
from doing away with the great
masses of our securities. which are the
instruments OF credit II they go down
in value tho business OF the country
goes to ruin with them.
ut Is we'll for us TO remember that
Europe is an armed camp. For many
years peace has been kept by most
delicate adjustment and the most
strenuous efforts OF many men in many
countries. But war is always possible.
the fear OF it always present. IL war
comes Immediately, our securities
drop.
"lf we enter upon this career Of In
fation, we shall do II in the face OF
clearly discernible danger. and,
though clearly recognized, Will result
in dreadful catastrophe. Gold al
ways leaves the country in which the
amount OF currency exceeds the legiti-
mate requirements of business. This
is an ineXorable law Putting it in
another way. gold always leaves the
country of high prices and goes to
the country of low prices You can
kill people who are engaged in busi-
ness; you can destroy business utterly,
but you cannot stop the operation of
these memorable economic and natural
laws.
When confidence is lost, you can
raise the rate OF interest To the roof
and not bring in ~ dollar. Long be-
fore we wake up from our dream of
prosperity through an inflated cur
rency, the sources of gold. which would
keep us from catastrophe, will have
lost their confidence, and no rate of
interest will tempt it,"
No Relief From Government.
Mr.. Root pointed out that in the
past, when an emergency arose. the
government Itself came To the relief
of commerce, and issued its own bonds
10 supply the needed gold That, he
SdIu. couiu not De done under me
pending bill.
This BILL" went on Mr. Root, dra-
iuatically. proposes to put in pawn the
credit OF the United States, and when
your time of need does come In the
United States. the government itself
is discredited"
Mr. Root then touched upon tho
political side OF currency legislation
On this point he said:
we ought MOTTO be required to dis
cuss the dangers OF imitation. The