Evening journal., 1913-12-20
RESPONSIBILITY DEFINITELY PLACED.

var HEN Dclawareans who already beginning to
w feel the pinch of the Underwood tariff law and
who destined TO share in the harmful effects Of
the Owen-Gass Currency Imitation law, arc consider
ing the matter of Federal legislation they should bear
one very important fact in mind. That is that while
Senator Salisbury and Representative Brockson, the
two Democratic members Of the Delaware Congress
sonal delegation have countenanced and participated
In the assaults upon national prosperity and honest
currency Senator Henry A. dupont, the sole Repuh
lican member of that delegation, has stood uncom-
promisngy in favor Of tariff that would protect
and promote American capital and American labor
and of currency system that would be both hon
,st and elastic and not cursed with the tant OF Demo-
sratlc imitation II is important that those facts be
in mind that, in local sense, the RESPONSE
,ility for the evil consequences which to
attend the operation Of the Underwood tariff law
and the Owen-Glass Currency law may be placed
where it properly belongs.
IL is a political axiom that the Democratic party
yet tinkered with the tariff the currency
without revealing its stupidity and inncting in
jury upon the material interests OF the American
people 1t never has learned how 10 transact the
tons business as it ought TO be transacted. Time
and again it has tried, and failed and been retired
because of its incompetency. There is little TO ndi
cate that the Wilson administration WI any
nearer measuring up to its responsibilities than did
The Cleveland administration, which brought many
msfortunes upon the American people.
In the debate in the Senate the Glass Cur
roncy bill, Of the most powerful speeche made
Rgainrt the measure by Senator Root of New
York He said his objection the bill was that it
permitted imitation of the currency that that
Imitation could be accomplished just as readily. and
Just certainly by loans of the Government paper
good security upon bad security; in other
words, upon security that good until the time when
through of imitation, situation is reached
in which security is good. lie said that If it be
rI ian "a
be true that the process Of initiation under the bill
can go to the point with which all are familiar
the point when the too sangune hopes and expecta-
tiQhs are brought TO sudden and disastrous end,
then none Of the security will be good
Senator Root called attention to the fact that It was
not denied that it would be possible under the Cur
bill to add to the existing greenbacks the ex-
isthg gold and silver certificates of the Government
the existing hundred and forty odd millions
bank notes further issues Of currehc, consisting
demand obligations of the United States to the extent
Of s1SOOoooOOo He added:
II is possible. No one denies the possibility of
periods of imitation. IL is denied that are to have
ono under this HILL but denies that such
periods do occur No denies that in the past from
time to time. great commercial nations have found
themselves moving along tide OF optimism which
with the facilities of easy money, has brought them
10 "a point of most serious and injurious collanse M
denies either the possibility Of such periods OF
the serious and runous consequences which inevitably
follow them. So We have basis upon which to pro-
hation, the ruinous consequences following such
periods the possibility of the enlargement Of our cur
rency under this bill by adding the existing cur
rency $iS00oOoo0O Of demand obligations of the
United States.
There are some further considerations bearing upor
hat, however II agreed the other day between
the Senator from Virginia and myself when / was
sNeaking that that was only based upon the manda
tory provision of the law: that is. based upon de
posits from member banks, which required b,
law and IT, as my friends the other side expect
many other banks come into the system. why so mucl
more VIII be deposited with the banks and 81
much more will be the reserve held by the membe
banks, and so much greater will be the possibite
OF enlargng the demand obligations of the Unite
States by the issue OF more of these reserve notes
Still further. the bill in its eleventh section con
fains two provisions bearing upon this subject On
is provision "a" in the enumeration of the auhorit
OF the Federal Reserve Board. Under that the Fed
eral Reserve Board has power: "To authorize men
Der banks to Federal notes O
bank notes based United States bonds to the
hat said board may find necessary" Under that
4nnot how there is any limit TO the enlargemeI
nnr currency under this bill. Understand Al