The Washington herald., 1913-12-14

away with the great masses OF our securi-
ties which are the instruments OF credit.
II they go down in value, the business Of
the country goes to ruin with them
warning of War Given.
1T is wen for US to remember that
Europe Is an armed camp. For many
years peace has been kept by most deli
cate adjustment and the most strenuous
efforts OF many men IN many countries
But war is always possible, the fear Of
II always present. II war comes immedi-
ately our securities drop.
IF we enter upon this career Of infia-
ton, we shall do 1t in the face Of clearly
discernible danger. and one that, though
clearly recognized. win result in dread
full catastrophe. Gold always leaves the
country In which the amount Of currency
exceeds the legitimate requirements Of
business. This Is an memorable law.
Putting II 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 BUSH
ness; you can destroy business utterly,
but you cannot stop the operation OF
these memorable economic and natural
Government Cannot Aid.
when confidence Is lost you can raise
the rate of interest to the roof and not
bring In a dollar. Long before We wake
up from our dream OF prosperity through
an inflated currency, the sources of gold
which would keep us from catastrophe
will have lost their confidence and no
rate of interest will tempt II"
Mr.. Root pointed out that in the past
when an emergency arose, the govern
ment itself came to the relief of COM
merce and issued its own bonds to supply
the needed gold. That. he said. could
not be done under the pending bill
This BILL" went on Mr.. Root, PRO
poses to put in pawn the credit OF the
United States and when your time or
need does come the United states
itself is discredited."
Mr.. Root then touched upon the politi-
cal side Of currency legislation.
I'VE ought not to be required to dis
cuss the dangers OF imitation. The coun-
try has rendered its judgment on this
subject. The American people closed the
gates against it when they sustained the
courage and patriotism Of Gov. Cleve-
land putting at stake all his future when
he demanded the repeal OF the silver
purchase act. The people again sustained
this principle when Mckinley was elected
President as against the protagonist of
this very idea contained in Section XVI
OF this DILL again IN lSVJ Nnc pcOpic sPOho
when they reelected Mckinley.
Reference to bryan.
Now a Democratic party elected-not
upon this issue-but upon issues far re-
moved from questions Of sound money
or initiate currency and without any
mandate or authority from the people,
undertakes to reverse the oft-repeated
Judgment Of the American people on this
settled question. In perhaps vain ap-
peal from the Judgment of Democratic
caucus, in violation of the duties imposed
upon them by the demands OF the people
OF the country. I protest against the en-
pIoyment Of power thus obtained for such
purposes.
Expressing the view that the men who
would be appointed as members OF the
Federal reserve board would be Of the
highest character. Senator Root referred
briefly to the part played by Secretary
Bryan in the construction of section II
without, however. mentioning him by
name, and declared that these members
of the Federal board undoubtedly would
be approved by the authority 30 potent
in this particular phase OF the legislation
and these men would be under the same
dominating. commanding and irresistible
influence"