Santa Fe new Mexican. [volume] (Santa Fe, N.M.) 1898-1951, 1913-12-13
WOULD CALL A
MONETARY
C0NFAb
A RESOLUTION INTRODUCED TO HOLD
AN INTERNATIONAL CONFERENCE
TO DETERMINE THE WORLDWIDE
BASIS OF PARITY BETWEEN
GOLD AND silver.
DEBATE ON CURRENCY
BILL IS CONTINUED

Washington, d. c., Dec. ia pro
posal that the United States call a
conference of the powers to consider
a worldwide basis of parity between
& ID and silver was brought up in the
consideration of the administration
currency bill today, when Senator
Thomas, Democrat, introduced res
olution proposing that President Will
son be authorized to invite England,
France and Germany, whose monetary
system is 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 conn-
tries and the silver nations of South
and Central American fluctuated vio-
lently, always to the disadvantage of
the gold standard countries.
Senator Thomas contended that his
resolution called for consideration in
connection with the currency bill
"The currency problem in any one
country cannot be satisfactorily set
tied without considering currency
conditions throughout the world"
said he.
Efforts for an agreement for an
extra vote on the bill met with little
success today.
Senator Cummins, Republican, con-
tinued his criticism of the measure.
Senator Root presented amendments
to eliminate the guarantee of deposits
and revise the note issue section to
provide for graduated tax on re-
serve deficiencies in order to prevent
initiation.
Il think this bill has many beneficial
features which ought to be enacted in
to law" he said.
'It is unfortunate that the circum-
stances under which the bills comes
before us, hamper full discussion. 1t
is unfortunate that the Democratic
caucus action on the measure, was not
delayed until the bill had been thresh-
ed out in the senate.
"ln presenting amendments, we la
Dor 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 cur
rency 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. He pointed
out that the government already has
1924, 900, 900 of demand obligations.
against which it holds 1891 100000 in
gold and silver. He argued that any
further increase of obligation should
be authorized only on ample reserves.
Predictions of big expansion of
business that would threaten an over
expansion of credit and currency un-
der the new law were made by Sena-
tor Root.
I'VE started out to provide for an
elastic currency, but this bill provides
for an expansive currency said the
senator. 1T provides for a currency
that may be increased, always increas-
ed, but there is no provision compell-
ing its reduction"
While the federal reserve board,
Senator Root admitted, had discreet
ionary powers to limit the issue OF
currency SO far as the proposed new
law itself is concerned. there was no
specific restraint in the constant In
crease of volume of 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 it 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
of the currency were con- !
cerned, would not help to check !,
panics.
81 can see in this bill" he said mo
end interposed by us to the occur
renee of one of those periods of false
and delusive prosperity that inevitably
ends in ruin and suffering"
1t has been the history of this and
)ther countries, he said, that panics
follow "easy money" That was the
Ease in 1887, in 1857, in 1873, in 1898
md in 1907, he declared.
Senator Roots amendment would
AK all notes issued after the gold re-
'erve dropped below so percent. 1t