Belington progressive. [volume] (Belington, W. Va.) 1912-1927, 1914-10-15
sNSINCERITY HAS
BEEN UNMASKED
Sherley, Of Kentucky, Riddles Arguments
Against Emergency Revenue Bill

last week, Representative Swagar
herley, Of Kentucky, dealt crush
ing blow to the Republican argu-
ment that additional taxes need not
be levied if the Government funds
now deposited in national banks
were withdrawn and used for cur
rent expenses of the Treasury On
this point he said:
"Members rail at the Democratic
administration because it has de-
posted SIS, 900, 900 with the
national banks. Now, the only
difference between the Democratic
party's action in that regard and
the Republican party 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.
sNow, 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
Aave lived under currency system
that has been the worst currency
system of any civilized station on
the globe. Under it your diccount
rate upon speculative loans was al
ways less than it was upon CONNER
cial loans, because there was 10
medium whereby you could redis-
count commercial paper, and, there
fore, the New York banks having
reserves deposited with them by the
interior banks had to loan money
upon such such character OF collat-
eral as would enable them in ordin-
airy times to Immediately get it back
when money was called for by the
interiorpanks that had loaned to
them; and hence loans were made
upon stock and bond collateral,
collateral that is readily convertible
in ordinary times, but which in
times OF great distress becomes the
mostdifficult and in many ways the
worst collateral that a bank could
have.
Here were the banks Of America
with great mass of this collateral.
Here were more than thousand
millions OF dollars Or American Sc
curities owned abroad, every govern
ment in Europe wanting gold, and
gold only, to finance the war, and
every one of the peoples OF those
countries struck by the blighting ef-
feet Of this war. with the need to
Immediately use every possible re-
source for cash. The necessary re-
suit was the instant offering to
to America of vast quantities of these
American securities held abroad,
with a consequent destruction of
their market value. Ii the banks
had not been in position, or had
refused to protect in some degree
those offerings, they would have
destroyed much of their own collat-
eral, their own securities would
have dwindled, credits would have
vanished, many would have faced
bankruptcy, although in pole Of fact
more than solvent, amply able or
dlnarialy to take care of all demands.
IF the Government with that
situation had let the country under
stand that it was going to add to
the burdens of the banks instead of
taking from the burdens of the banks
az far as they could, pou would have
had panic il this country, and
then the very men who are here
railing against US because we do not
sgo to the banks now and draw out
Ibis money, would have beeh loud
est in their statement that it was a
refusal of the Government to help
business and financial institutions
teat had forced the panic on US.
II say to you that it takes cour-
age and statementship Of the high
est order to face disagreeable tasks,
to face them knowing that criticisms
will be made, which, to the casual
thinkes, vii carry weight, and to do