El Paso herald. (El Paso, Tex.) 1901-1931, 1913-12-13

w A proposal LhaL Ili0
w states call a conference Of the
movers to consider a world wide basis
OF paritv between gold and silver was
brought I'D in consideration OF the al
ministration currency bill today.
Senator Thomas, a Democrat intro
6uced a resolution proposing that pres
ident Wilson be authorized to invite
ENGLAND. France and Germany, whose
monetary. System IS based on the goio
standard, TO participate and that I'VE
delegates be appointed from the United
states when any two European ma
fions had accepted the invitation: n
preamble set forth that rates OF e3-
change between gold sJandar9 SoS,4b
tries and the silver nations OF SCUM
and Central America tluctuated VIZ
entity, always to the disadvantage OF
the gold standard countries.
Senator Thomas contendeo InaL nls
resolution called for cOhsloeraSlOn III
connection with the currency Dill
'sThe currency problem in any one
country cannot be satisfactorily set
tied without considering currency SI u
ditions throughout the world" SAID ne.
Efforts for an agreement Tor an
early vote on the bill met with uILe
success today. Senator Cuumlns, he-
publican, continued MS crl1clsH "a
Root warns Against Imitation.
Senator Root presented amendments
TO eliminate the guarantee OF depOSlts
and revise the note issue secIloh 70
provide for q graduated tax on reserve
deficiencies in order TO prevent lnIla-
4 think this bill has many benefit
cial features which ought 10 De en-
acted into law" he said 1t IS unIor-
Tunate that the circumstances unoer
which the bill comes before US nam
pers discussion. 1t is unfortunate that
the Democratic caucus, acting upon the
measure, was not delayed until the Dill
had been presented IN the senate IN
presenting amendments We labor under
the diScOuraging idea that the Dill mas
been already passed
Senator ~Root pointed out that there
was no limit on the amount OF new
currency which could be issued under
.sThis provision" said he, referring to
the note issue section, is simply au-
thority for the further increase OF our
present greenbacks." He pointed out
that the government already has $6z4,-
600 GOO of demand obligations. against
which it holds 1891, 100000 in gold and
silver. He further argued that any
further increase Of obligation snouIu
be authorized only on ample reserves
Expansive, Not Elastic.
Predictions Of big expansion OF
business that would threaten an over
expansion Of credit and currency under
the new law were made by senator
I'VE started out to provide for an
elastic currency, but this Dill proVlqes
for an expansive currency" said the
senator 1T provides for currency
that may be increased, but there is no
provision compelling its reduction
There viii be an activity OF enter
prise that will absorb the maximum
which the reserves Of the banks VIII
permit" he said, and 1t VIII require
the exercise, to the extreme OF the au-
thority of the federal reserve DOaro 70
hold If in check"
Ne Check on Panics.
Senator Root declared that the new
the expansion on the currency were
concerned, would not help TO check
4 can see in this BILL he said. no
end interposed by US to the occurrence
of one Of those periods OF false ana
delusive prosperity that inevitably ENDS
IN ruin and suffering
It has been the history Of this ana
other countries, he said, that paIllcs
follow easy money" - 80,
IN 1898 and in 1907" he declared
Tax on Notes.
Senator Roots amendment would tax
all notes issued after the gold reserve
dropped below so percent. 1t would
also provide that any new notes lssuS4
after S9OO,0O0,0OO had been put, anu
that after $1,000, 100000 notes had been
issued a tax Of five percent should be
imposed On further issues
$4,000 900 more of notes than are now
outstanding in the national bank note
currency" said senator Root, and IN
der pressure would allow further eX-
pansion Of $500, 600 more II the
banks found that business needed the
currency badly enough to make prof
liable the securing OF currency Dy the
payment of the tax
Expect Currency Vote Wednesday,.
Senate leaders still hope that speech
IS will be concluded and amendments
disposed Of in time for a vote on the
passage Of the currency bill next We'd
nesday.
Senator Hollis, a Democratic mem
Der Of the banking committee, VINO
Joined in the preparation, OF the owen
bill, defended the regional reserve sec
ton and the bank owners Of the stock
Senator Cummins proposed amend
neuts to the Owen bill providing that
the member banks Of the federal re-
serve banks should elect four instead
of six of the directors and that the
federal reserve board should elect I'VE
instead of eight He explained that
he believed that the people instead of
the bankers should be given more pow
er over the money Of the country.
Senator Sterling read a number OF
letters from South Dakota bankers en-
dOrsing the Hitchcock plan He said
the Hitchcock provision to allow the
regional banks to discount a certain
amount Of six months paper would
extend the benefits of the news system
Fight Over Imrli grafton Bill
Representatives RakeT and Hayes, Of
California, and Johnson, Of Washington.
sought today to have the house i'm
migration committee incorporate IN the
pending immi grafton bill an amendment
for exclusi on Of "Asiatics.' The fight
in the committee was acrimonious and
confusion in the discussion was 50
marked that it was renorted an amend
ment had been carried for Asiatic ex-
clusiOn.
By a close vote, however: after re-
peated attempts. the question Of in
GLIDING an Inhibition against -Asiatics
was deferred until later in the day
with the California and Washington
members Of the committee insisting on
exclusion.
Pension for Mrs. Gailiard.
In recognition Of the distinguished
services of the late Lieut. Col. Dubose
Gaillard. q. s. A, a member Of the
Isthmian Canal commission, the house
passed a bill to appropriate to Mrs
Gafllard $4,000. the equivalent Of a
years salary for a commissioner.
To Increase Aviation Corps.
An army aviation corps with so Of
ficers and 26C men would be created by