Pierre weekly free press. (Pierre, S.D.) 1889-19??, 1913-12-18
WOULD ESTABLISH
PARITY OF METALS

ence of he powers to consider Il world
wide basis of parity between gold and
silver was brought up in the consid-
GRAFTON of the administration currency
bill today when Senator Thomas,
democrat, introduced a resolution pro-
posing that President Wilson be au-
thorized to invite England, France and
Germany, whose monetary system Is
based on the gold standard, to parti.
cipate n that five delegates be ap,
pointed from the United States when
any w nations had accepted the in
vitation.
A preamble set forth that rates OF
exchange between gold standard coun-
tries and the silver nations Of South
and Central America f~luctuated vio-
lently always to the disadvantage OF
the gold standard countries.
Senator Thomas commended h a his
resolution called for consideration in
connection with the currency bill.
"The currency problem in any one
country cannot be satisfactorily settled
without settled currency conditions
throughout the world" said he.
Efforts for al agreement for an early
vote on the bill met with little success
today.
Senator Cummins. who continued his
speech on currency in the Senate today,
opened the deba this morning. He
devoted attention especially to the con-
stitutional and legal questions involved
in trying to force the banks to sub
scribe to the capital of the reserve
banking system or surrender their
charters. He warned the democrats
they might expect this question would
go to the courts and be Fought through
the supreme court and he appealed to
them not to throw the financial sys-
tenn into confusion, which would result
He urged public ownership as the way
to avoid this litigation.
Root Offers Amendments.
Senator Root presented amendments
to eliminate the guarantee of deposits
II revise the note issue section TIC
provide for a graduated tax on reserve
deficiencies in order to prevent infla-
ton.
"I think this bill has many beneficial
features which ought to be enacted
into law" he said. 1T is unfortunate
that the circumstances under which the
bill comes before us hampers full dis
cussion. 1t is unfortunate that the
democratic caucus action on the meas
ure was not delayed until the bill had
been threshed out in the Senate. Ii
presenting amendments We labor un-
der the d~iscouraging idea that the bill
has been already passed"
was no limit on the amount of new
currency which could be issued undei
the bill.
This provision" said he, .referrina
to the note issue section, lis simply
authority for the further increase d
u present greenbacks. He pointed
out that the country already has $S24..
600, 900 of demand obligations agains,
which it holds 1891, 600. 900 in gold and
silver. He argued that any further in.
crease OF obligations should be au-
thorized only on ample reserves.
Predictions Of a big expansion o,
business that would threaten an oye1
the new law We're elade by Senate,
Root.
1--WE started out to provide n elasti,
currency bills this bill provides for ar
expansive currency" said the senator
ut provides for a currency that ma,
there Is nc provision compelling its re.
ductions."
Money Toe Easy, Ho Says.
While the federal reserve board
Senator Root admitted. had discre.
tionary wv to limit the issue o
currency, SO far as the proposed nev
law itself is concerned. there was M
specific restraint on the constant in.
crease Of the volume of the currency
There will be an activity of enter.
prise that will absorb the maximum
w ~ = NSSh ' - VI liz III MI
permit" he said. a it will reauir,
the exercise. to the extreme. of tn,
authority of the federal reserve boart
to hold it in check"
Senator Root declared the new bin
so far as specific restraints on the ex
pansion of the currency We're con
cerned. would not help to check panics
~ can see in this bill" he added
mo end interposed by us to the oc
c%urrence of one of these periods q
false and delusive prosperity that in
evitably ends in ruin and suffering.
1t had been the history of this an,
other countries. he said. that panic
follow easy money!
That was the case in 1881, in 1887
in 1873. 1893 and in 1907 he declar roc
Senator Roots amendment Woul,
tax ali notes issued after the gold re
would also provide that any new note
issued after 5000. 900. 900 had been mn
out should pay a special tax OF IL
per cent and that after $1,000, 0OO. Don a
notes had been Issued a tax OF Z ne
cent should be imposed on further 10
sues.
This would allow the issue OF som
$3.50, 000. 900 more Of notes than are no,
outstanding in the national bank err
rency,' said Senator Root, .and undo
pressure would allow a further ex
pansion Of 5000, 900, 900 more if th
banks found that business needed tn
currency badly enough to make profit
able the securing OF currency by In
payment OF the tax.
STILL SEEKING LOAN.
sM Nya~, vorlx rnao . - AAofHsA