The Manning times. [volume] (Manning, Clarendon County, S.C.) 1884-current, 1914-10-21
HE SHOWS THEM UP
INSINCERITY. IN
MASKED IN HOUSE.
Congressman Sherley of Kentucky
Riddles Arguments Against the
Emergency Revenue Bill.

In speech upon the war tax bill
last week, Representative SWagar
Sherley of Kentucky dealt crushing
blow to the Republican argument
that additional taxes need not be lev
led if the government funds now de-
posted in national banks were with
drawn and used for the current eX-
penses Of the treasury. On this point
he said:
Members rail at the Democratic
administration because it has deposit
ed S75,O00,000 with the national
banks. Now, the only difference be-
tween the Democratic party's action
in that regard and the Republican
party's action in the past has been
that you deposited money free of any
interest and we have deposited money
and asked 2 per cent. interest on It.
"Now, the fact is this, also known
of and admitted by all thinking men
who are not talking simply for the
sake of party advantage: We have
lived under a currency system that
has been the worst currency system
of any civilized nation on the globe.
Under it your discount rate upon
speculative loans was always less
than it was upon commercial loans,
because there was no mediE". Wisre-
by YOU could rediscount commercial
paper, and therefore, the New York
banks having reserves depositsa with
them by the interior banks had to
loan money upon such character OF
collateral as would enable them in
ordinary times to Immediately get 1t
back when money was called Sor by
the interior banks that had lna&ed to
them; and hence loans vera made
upon stock and bond coilatzral, col
lateral that is readily Convertible IN
ordinary times, but which in time OF
great distress becomes the most diff
cult and in many ways the wrost col
lateral that a bank could have. Here
were the banks of America with
great mass Of this collateral. Here.
were more than a thousand millions
of dollars of American securities.
owned abroad, every government In!
Europe wanting gold and gold only,
to finance the war, and every one OF
the peoples of those countries struck
by the 'bIighting effect of this war,
with the need to Immediately use
every possible resources for cash The
necessary result was the instant Of
fering to America of vast quantities
of these American securities held
abroad, with a consequent destruc-I
tion of their market value. q, If the
banks had not been in position, or
had refused to protect in some degree
those offerings. they would have de-
stroyed much of their own collateral,
their own securities would have dwln-
died, credits would have vanished,
many would have faced bankruptcy,
although in point of fact more than
solvent. amply able ordinarily to take
care of all demands.
eff the government with that situ-I
alton had let the country understand
that it was going to add to the bur
dens Of the banks instead. of taking
from the burdens of the banks as far
as they could. you would have had
panic in this country, and then the
very men who are here railing
against US because we do not go to
the banks now and draw out this
money, would have been loudest IN
their statement that it was refusal
of the government to help business
and financial institutions that had
forced the panic on us.
81 say to you that it takes courage
and craftsmanship of the highest or
der to face disagreeable tasks, to
face them knowing that criticisms
will be made, which. to the casual
thinker, will carry weight, and to do
it without regard to political for
tunes. because it is in the true inter-
ests of your country. do nc believe
there is man within the sound OF
my voice, acquainted with real finan-
cial transactions. with world currents.
but that in his heart of hearts ap-
proves of the action that he govern
ment has taken in Strengthening the
banks throughout the country at this
time instead of undertaking to weak
en- them"