New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-12-14
Democratic Currenc. Bill
Proposes to Pawn Credit
of United States.
WOULD DRAIN BANK
VAULTS OF GOLD
Measure Tends to Shake Conf.
dence of Europe-Speculative
Money Here Opposed.


washington. Dec 13-A grave warn
ing against the evils of imitation which
might result from the Democratic cur
rency bill was uttered by Senator Root
to-day during the course Of the most
impressive speech that has been deliv-
cred i'm the Senate since the debate on
the measure began.
The impression made by the senior
Senator from New York was height
ened by the declaration Of Senator CAL
hHger of New Hampshire, that Mr..
Root should he the next candidate Of
the Republican party for President Of
the United States. Mr.. Gallinger said
that unless the Republicans nominated
MIR Root they would miss their great
est opportunity.
Senator Root told his colleagues that
the pending bill tended to shake the
confidence Of Europe. which holds hun
dreds Of millions OF American securi-
tics. in the financial credit of the United
States, opened the way for the draining
OF cold from bank vaults in this coun-
try and IN effect revived the issue Of
financial heresy" advocated by Mr.
Bryan and twice repudiated by the peo-
pie Of the country.
Whatever the views Of Mr.. Roots
colleagues they listened TO his address
with closer attention than they have
given any other speaker on the cur
rency question. His remarks were re-
Ceived with the utmost gravity by
Senator's on both sides OF the chamber.
and the silence that prevailed when he
warned the Democrats that they were
entering on a plan of imitation and cur
rency expansion that might result in
untold ruin and distress for the people
Of the United States without the war
rant of approval from the people OF
the country was impressive.
Senator Root called attention 10 the
fact that our normal trade balance
cannot be taken literally as represent
ing the net profit Of our foreign trade.
lie referred 10 the millions spent by
tourists in Europe, the other millions
sent 10 relatives abroad by American
immigrants and still other millions that
60 out Of this country in the form OF
freight charges for ocean traffic. Eu-
rope, he added, holds more than ST.
SoO.oOOO0O i'm American securities.
Gold Would Leave Country.
If we shake the confidence Of Europe
in our financial system, he said, these
securities will be thrown back on US
and we must send gold abroad to pay
for them. Section Is OF the pending
administration bill makes it possible
for banks or individuals TO obtain gold
from the Treasury for the greenbacks
and the proposed federal reserve notes.
There is no limit to which the latter
may be issued. If the reaction comes,
he explained. there is no way by which
we can prevent the outflow Of gold and
the undermining Of the credit of the
United States
THE tendency 10 reduce rates and
add TO the duties and burdens Of our
transportation companies, to push up
their operating expenses through the
demands OF labor and increased cost OF
materials, has disquietine effect upon
European investors and stockho ders,"
said Mr.. Root. This is supported to
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
continued on second page, fifth column.