New-York tribune., 1913-07-30
Mr.. McAdoo's Charge and the
Real Cause of the Bonds Decline.

Secretary of the Treasury McAdoo is the last
man to make such charge as he has made against
the banks without backing it up at once with
proofs The one thing that reconciled the public to
the appointment of Mr. Bryan Secretary of state
was that it kept him out of the Treasury portfolio
But has he been kept out of it? 1t would hardly
seem so with the occupant of it shouting Con
spiracyw as Justify as if he were the Nebraskan
himself.
Mr. McAdoo Injuries his own good reputation by
making a wild charge. He does not promote the
cause of sound banking and currency legislation
No good will come from a bill passed in spirit
of hostility and suspicion toward banks. There Is
too much of that already in the administration
plan. Cooperation of the banks should be invited,
not repeled
The criticisms which the banks have made thus
far upon the administration proposal seem to us
to have been made with a sincere desire to secure
legislation that will the interests Of the coun-
try These criticisms have been moderate. The
suggestions which the bankers have made have
been generally sound and should be useful. The
administration plan has not been condemned out
right but proposals have been made for its i'm
provement 1t is pity that the Secretary of the
Treasury should lend his name and influence 10
a Bryanite suggestion that the banks are to be
feared and suspected and treated public enemies
The fall in the government per cent bonds is
easy to explain without Mr. McAdoos absurd
hypothesis of a conspiracy. Their price has depended
SOLELY upon the bank circulation privilege attached to
them 1t Is proposed to withdraw that privilege at
once or gradually. The government Is breaking It's
contract with the banks upon the strength of when
they bought the bonds at par or over par. No
certainty exists that it will deal honorably with It's
bondholders and protect them against losses as 1t
changes the terms Of its contract with them II
is painful to say this, but it Is true The currency
bill as IT stands gives assurance. The radical
temper in Congress, the reputation Of the Demo
cratic leaders. the Bryanite influence, all tend 10
produce anxiety among the banks holding the
bonds And such an utterance as that of Mr.. Nc
Adoo. coming from man Of his character ana
antecedents is not calculated to restore confidence
Look at the thing fairly. The country proposes
mild measure Of Reputation of its obligations
Reputation has a certain popularity Mr. Bryan
still controlling influence in the Democratic party
ran for the Presidency upon platform of whole
sale public and private reputation. Who knows
where reputation will stopE Certainly the bill
does not point the limit to it. The temper of Con-
gress IS not reassuring 1t is no wonder then that
some banks have sold part Of their holdings OF
per cents, preferrng to pocket present losses to
running the chance Of much larger losses.
The Democratic majority in Washington can
protect the Q per cents by making it plain that
their holders will not lose from changing the con-
ditions on which they were issued and upon which
their price has been based. There is a moral obi-
cation upon the country to do this, and to do it
would be much more pertinent and much more
statesmanlike than to cry Conspiracy"