The Birmingham age-herald., 1913-08-02

faith profess to see IN this situation a de-
termined and concerted movement on the
part OF the big interests, which owe pres
ent Opuenee largely to republican legls-
/ lation. to hamper the administration as
much as they possibly can, both in the en-
actment of reforms and carrying them out
after they have been placed upon the
sta tute books. They hope by bringing
about these unnatural conditions TO atfeet
the tinid in the administration ranks and
create doubt in the minds of the ma
jority. as to the advisability of the en-
actment of these laws. That they have
the power to create such a situation only
emphasizes the necessity of currency leg
islation and makes action by Congress at
this session all the more imperative
furthermore it strengthens the determine
tion OF the administration in indeed L
were necessary to strengthen it, to not
let the extra session of the Sixty-third
Congress. go out of existence until both
the tariff and currency bill had been made
parts of the law of the land
Have Met With Real Fighter
Certain banks and the interests are pow
erful in this country, but President VIII
son has not and will not concede that
they are more powerful than the govern
ment. They may succeed in making de-
, lays; they will succeed in creating tempo
rary depressions, but they are facing a
determined fighter who has faith in his
convictions ,and who believes that the
bucyancy of the legitimate business of the
United States will respond quickly and
override the false conditions created In
our commercial dfe by those whose inter-
est it is to defeat proposed legislation and
it is his purpose to throw all the power
of the government into the fight for the
people.
The general opinion among legislators IN
Washington is that there are no bona tde
sails of the per cents at the prices quoted.
The truth of the situation is that only
an infinitesmal proportion of these bonds
could in the natural course of things be
offered. The per cents are in dis
tinct class, being issued only for the pur-
pose of guaranteeing the national bank
circulation. If national bank which
held such bonds and had issued large
part or the whole of the circulation to
which it was entitled, the bank could not
offer the bonds for sale. of course, with
out first withdrawing the currency based
on the bonds from circulation. Then to
sell them below par when it is an ap-
| solute certainty that they will be re
deemed for their face value, or per cents
given in their stead, would be engaging IN
a foolish business transaction, involving
the loss of real money. which the bankers
of this country have not formed a habit
of doing.
1t is possible that a very small percent
age of these bonds, belonging to estates
or in the hands of people to whom they
have gone through business TRANSACTIONS
may be thrown upon the market. AS an
investment the buying public would not OF
course, turn to such bonds, when good Sc
curities may be had that bear a hlgher
rate of interest But for New YORK TO at
tempt to create the impression that the
general market price for government
per cents is 951h is misleading
That is the point-it is intended TO De
misleading. The bear movement mas Deel
encouraged for the purpose of striking
terror to the hearts of the National bank
ers all over the country as to what might
happen if the new currency law is en-
acted. Public sentiment wields vast IN
huence over legislation, and no one knows
this better than those who are opposed
10 the proposed tariff and currency bills,
and they realize with the thousands OF
national banks all over the United States
ALI pointing to a big loss in their govern
ment securities that they may become
powerful factors in creating public sem
timent against the proposed changes, as
we'll as a sentiment against the party
which proposes them.
An analysis of the situation, however,
in a common sense manner, will con-
vince the people-in the opinion of the
democratic leaders-that the assault on the
Governments S securities Is for a fixed pur-
nose. and is no evidence that the bonds
are not as valuable today as when they
were quoted above par on the market.