The Wahpeton times. [volume] (Wahpeton, Richland County, Dakota [N.D.]) 1879-1919, 1914-10-15
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Republican claim In oppo sltlon "a
Emergency Measure
The PRESIDENTS COURAGE
And 8tatesmanshlp Of Hiah Order
End 0tsa0reeablo
Task

dealt q crushing blow to the Re-
publican argument that additional
taxes need not be levied if the
Government funds now deposited
in national banks were withdrawn
and used for the current expenses
Of the Treasury. On this point he
said:
Members rail at the Democra-
tic administration because it has
deposited $75, 900. 900 with the ma
tional banks. Now, the only differ
ence between the Democratic par
TVS action in that regard and the
Republican party's action in the
Rast has been that you deposited
money free of any interest and we
have deposited money and asked 2,
per cent interest on it.
Nov. the fact is this, also
known of and admitted by all
thinking men who are not talking
simply for the sake of party adj
vantage: We have lived under
currency system that has been
the worst currency system of any
civilized nation on the globe. I'm
der it your discount rate upon
speculative loans was always less
than it was upon commercial
loans. because there was no med
ium whereby you could rediscouut
commercial paper. and, therefore,
the New York banks having re-
serves deposited 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 it back
when money was called for by the
interior banks that had loaned to
them. Hence loans were made up
on stock and bond collateral, a
collateral that is readily convert
ible in ordinary times, but which
in times of great distress becomes
1.-The most difficult and in many
ways the worst collateral that a
bank could have. Here were the
banks of America with a great
mass of this collateral.
Here were more than a thous-
and millions Of dollars of Amer
lean securities owned abroad, cv-
cry government in Europe want
ing gold. and gold only. tn finance
the war. and every one of the peO-
pies Of those countries struck by
the blighting effect of this war,
with the need to Immediately use
every possible resource for cash.
The necessary result was the in
slant Offering to America of vast
quantities of these American Sc
curities held abroad. with a con-
seGuent destruction of their mar
ket value. If the banks had not
been in a position. or had refused
to protect in some degree those
offerings. they would have de-
stroyed much of their own collat-
eral. their own securities would
have dwindled. credits would have
vanished. many would have faced
bankruptcy. although in point of
fact more than solvent, amply
able ordinarily to taxi care of all
demands.
IF the government with that
situation had let the country un-
derstand that it was going to add
to the burdens of the banks in
stead of taking from the burdens
of the banks as far as they could,
YOU would have had a pan;c 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 mo-
ney. would have been loudest in
their statement that it was a re-
fusal of the Government to help
business and financial institu-
tions that had forced the panic on
us.
II say to you that it takes cour-
age and craftsmanship of the
highest order to face disagree
able tasks. to face them knowing
that criticisms will be made.
which. to the casual thinker. will
carry weight. and to do it without
regrd to political fortunes. because
it is in the true interests of your
! country. l do not believe there is
(, a man within the sound of my
voice. acquainted with real finan-
cial transactions. with world cur
rents. but that in lis heart of
hearts approves of the action that
the Government has taken in
strengthening the banks through
out the country at this time in
stead of undertaking to weaken
Them"
why plvEr WANTS TO 40 TO