Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-12-14

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sented itself to that party. Sem
ator Gallinger
Following a remarkable speech on the
currency bill, characterized by some Of
his colleagues as the ablest address on
this subject ever delivered in Congress,
Senator Root of New York was ''noini-
mated as the next republ can candida; ;e
for the presidencly by Senator Gaiiinger,
the republican leader OF the Senate.
While Senator Root was receiving the
congratulations Of his colleagues. both
republican and democratic The senior
senator from New Hampshire pe1ned a
short statement. declaring tha the re-
publican party would miss a g eat oppor-
tunity if it failed to select Mr.. Root as
its standard bearer.
Senator Root in his speech attacked
those provisions of the democratic bill
which call for the guarantee of bank de-
postts and which would make tn notes
Issued under the system the obligations
or the government. While he did not
use the name of Secretary Bryan Sem
ator Root referred to Mr.. Bryan pointed
iy. declaring that these features OF tGc
bill were in truth a vitai part OF the
financial views OF Mr. Bryan which the
country had Overwhelmingly repudia ed.
huge expansion OF the currency. guar
anfeed by the government. AMI that it
boded great danger for the country and
the government
Chides Democrats.
Before taking up the detailed discus
sion Of the bills provisions Senator Root
chided the democratic ma aiority for hav-
ing adopted a~scarrency hin IN caucuss
Defore the bill was ons.dered and de-
bated on the floor OF the Senate.
Il am not one Of those vino denounce
the party caucus under the party sys-
i think that a declaration of party
afAltat1on is not to be disregarded as
sOon as Office is obtained.
The party in power is justified. there
fore, In holding conference to determine
how best the promises of the party may
be carried out But I think that the
democrats made a mistake in holding this
caucus before an opportunity was given
to debate this bill on the floor of the
Senate Then the democratic senators
could have had the benefit of hearing
the views, with an open mind, of the
members OF the minority"
Slight Ray of Hope.
Senator Owen, chairman OF the bank
ing and currency committee, interrupted
TO say that it was the distinct under
standing OF the democratic conference
that il could meet again and take up any
features Of the bin If it saw lit 10 do so
II am glad TO have this ray of hope
presented said Senator Root, though
am afraid 1t is slight
Senator Root showed in detail the
amount of currency In the country and
the amount OF money now outstanding
as government obligations The tota
amount of such government obligations
lie said, appears TO be about $S;4, 0o0, go
Against this the government holds i'm re
serve x59l % 900 in gold and silver He
said that IL Is now proposed to increase
the amount of government obligations
almost without limit
He showed that the estimated total re.
SOURCES OF the federal reserve bank.
would be 6S6.0JoUU0 and chat under thu
terms of the bin il would be possible ts
issue Sl.S1I, ,C0o,00o in notes against these
resources. All OF these notes would bt
government OBJ igations. He showed tina
commercial paper may be used by thu
banks Tor redis.ounting, and that in this
way the issue OF notes may be still fur
tier increased. The only check, he said
was the fact that the member bank.
would be compelled to hold In resery.
% 1-3 per cent Of gold against thes,
notes.
Calls 1t Expansive Currency.
Senator Root declared that the pending
bin provides. not for an elastic currency
but for an expansive currency.
THE bill contains no provision com.
pellinsoa reduction in the amount of cur
rency issued" said Senator Root. Ill.
declared that the tendency shown by tn,
history of finance throughout the age
70
Of currency whenever il is possible. HI
said that the same results ma be ex
pected II the bill is enacted into law.
Under this profTer of easy money from
paternal government, available for n
all. said Senator Root I'VE NAV expec
the same process which has occurred i
the older countries time and time agar
latte by little the merchant, the manu-
1aeturer, the men with visions OF erea
fortunes will obtain this easy money I
begin business.
Prosperity will come. leading TO the dc
sire for further growth. But finally som
one whose Judgment was bad break.
falls and hits the next man and he tn
next, and down viii come the whole row
That Is no dream. That is the history Q
imitation since business began
Senator Root urged the adoption of
provision In the bill which would prs
vent such imitation OF currency
Root Amendment.
His amendment would tax all note
issued after the gold reserve droppe
below so per cent. IL would also Pre-
vide that any new notes issued afte
S1,e00.0oeoo0 notes had been issued
tax OF . per cent should be imposed O
further issues
'aThis would allow the issue of som
= u.a -
outstanding in the national bank not
currency" said Senator Root, .and VI
Continued on Thirteenth Pagel