Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-12-12
Declares Bill Gives Financial
Interests Power to Ma
nipu'ate Money.
CONTROL SHOULD REST
WITH THE GOVERNMENT
Proposed System Virtually Central
Bank, Declares Idaho
Senator.

bill is no more nor less than a central
bank, owned and control d by the banks
OF the country, was a charge made by
Senator Borah Of Idaho against that
measure on the floor of the Senate this
afternoon.
1T has been admitted by democratic
senators during this debate that If the
proposed system works at all, it will be
in effect a central banking system" de-
clared Senator Borah Il am not a
nnancler nor an expert in financial mat
tiers, but If you examine this bill from
a lawyers standpoint to see where the
power lies, you will find tat the power
Les with the privately owned banks of
the country, through their ownership of
the stock OF the regional reserve banks
and their control of the boards directing
these regional banks.
Sees Power to Manipulate.
In this bill you will give to the banks
OF the country the power to initiate or
contract the currency at will The power
TO control the currency of the country
belongs properly to the government. and
should not be delegated to any private
corporations or individuals. Under this
Dill the government will not have the
power to issue or to retire single dollar.
but this power will rest with the regional
reserve banks. which are owned and con-
trolled by the member banks"
Senator Borah quoted George NJ. Rey-
noids OF Chicago as having admitted
that dozen men, of whom he himself
was one, actually controlled the money
of the country. Senator Borah said
that he had no wish to attack the
bankers of the country. that he be-
lieyed them to be no better and no
worse than other classes of men. He
deplored. however, the effort which is
being made in the administration bill
to PLACE in the hands of the bankers
the absolute control of the currency of
The country.
Defends Work of Caucus.
vigorous defense of the democratic
caucus as the only method of carrying
party promises into effect marked the
opening of the debate. Replying to the
severe arraignment of the caucus made
last night by Senator Hitchcock, who DIFF
fers with his democratic associates on
currency legislation, Senator NewIands
declared the caucus was the instrument
by which administration measures" rem
resenting the results of party counse,
could be made effective.
Hitchcock Leads Attack.
The final assault on the detailed proyi
sions OF the administration currency bin
was begun in the Senate last night. Sem
ator Hitchcock of Nebraska began the
presentation OF his amendments TO the
Dill, declaring In a dramatic speech that
he declined to consider the measure COM
pleted by the democratic caucus as unal-
terable.
Senator Hitchcock quoted from Pres;-
dent Wilson's book. THE New Freedom, :,
TO show that the President was on record
against caucus and committee legislation
ana was In favor of the consideration of
reform measures lin the full light of pub.
lefty
Il have no purpose to delay the consid-
Grafton OF this BILL" said Senator Hitch
cock. But l deplore the tendency of
senators on both sides of this chamber TO
regard this bill as foreclosed to amend
ment by the action of the democratic
caucus. The President has proclaimed
time and again that discussion in public
was above all things the most important
consideration in legislation
Doubts That Wilson Approved.
Senator Gallinger the republican leader.
suggested that the President had APP
proved of the caucus on the tariff bill.
and had also approved the caucus on the
currency bill.
i doubt that said Senator Hitchcock,
emphatically. II shall not believe until /
hear the votes cast here that men who
have assured me that they would not be
bound against their convictions by any
caucus will stultify themselves and come
in here TO vote against the things in
which they believe
Senator Owen made a vigorous reply To
Senator Hitchcock and endeavored in vain