The Washington herald., 1914-12-06
Political Situation.

portion OF its members would come to say goodbye
The prophecy has been amply verified Through
defeat, failure to secure denomination, declination
and other causes no less than 40 members who
will answer the roll call tomorrow will not be seen
in the next House.
1t is Just possible that this large inroad on the
membership of the House will have its effect upon
the attitude of Congress toward the President
Practically all of the Democrats seeking re-elec
ton last month made the President and his admin
istration the principal issue of their campaign They
staked their all upon him and lost. This being the
case there is opportunity for insurgency to manifest
itself Even if there should be no open hostility the
President hardly expect to find during the last
three months of the session the complete sub
serviency to his wishes which marked the proceed
ings of the last session 1t appears therefore,
that the President demonstrated great political
sagacity when he insisted previous to the election,
upon securing the enactment of legislation deemed
by him to be of vital Importance. He must have
anticipated the outcome at the polls. He evidently
realized that the opportunity to frame his policies
into laws would pass if he waited either for the
short session which begins tomorrow or for the
next Congress to assemble.
Under these circumstances it does not require
the gift of prophecy to assert that during the ap
preaching session the President will be in quies
cent mood. He will not suggest any legislation
which will be likely to provoke controversy. The
leaders in the House, for their part, will be content
with passage of the appropriation bills and with
the enactment of such routine matters may pre-
sent themselves. At the same time, troublesome
questions may inject themselves into the proceed
ings In fact, the House will have as its first bust
ness vote upon a project to have the United
States issue $25ooooooo of its Treasury notes and
deposit them in national and State banks in the
parts of the country where cotton is the chief pro-
duct. AS security the Treasury would accept ware
house receipts. The outlook is for the defeat OF
this measure but it is certain that the Southern
members will not accept this outcome without
manifestng feeling of resentment. Conditions in
the South are bad. very large proportion Of the
cotton crop was raised upon borrowed money and
owing to adverse weather expensive under
taking There are no funds with which to repay
the loans and the help of the government is the
only salvation. The tobacco planters are also in
sad straits and are asking assistance. While the
representatives of the cotton and tobacco interests
not numerically strong enough to pass their
relief measures they are in position to make
trouble should they decide upon retaliation. They
may be content to accept a postponement until a
special committee appointed in October can make
its recommendation to form OF financial relief
to be adopted but they insist upon blocking legS
lation until they are accorded consideration they
in a position to do so.
This means of course. that the waters OF the
approaching session may not smooth q,
Many Other Important Matters Pending.
If it should be decided to confine the work OF
the session to the appropriation bills it will not
be because of the lack of important matters de-
manding attention.
Immediately after voting on the question of
A. to
upon two bills which through their direct relation
to banking will increase the credits available in
cotton-growing States. Both bills have already
passed the Senate and have the support of the Fed
eral Reserve Board Under of these bills banks
in the South which hold much commercial paper
but relatively few bonds could increase the emer
gency currency they obtain upon security of
commercial paper by forty fifty million dollars.
The other bill, by allowing banks which mem
bers of the Federal reserve system to place on de-
post with Federal reserve banks all of the
serves they now must hold in their own vaults,
would increase the lending power of the Federal
reserve banks which deal with the South to the
extent of $Io6, 100000 Then, too, there is bill
upon the House calendar which proposes to license
warehouses through the Department OF Agriculture,
thus making cotton warehouse receipts more avail
able as security The outcome as to this legisla-
tlOn VIII De awaited WIFI interest," IL lSNdliS thS
declarations of the Populist platform of 1896 and,
say the least suggests radical innovations in the
financial system of the country.
Another important matter which, it is asserted,
the President will advocate in his message is the
Alexander shipping bill which provides for the
purchase and operation Of merchant vessels by the
United States government through corporation
which the government would control To make
these purchases the sum of S3oooo,ooo is to be
provided through the sale OF bonds. The arguments
in favor of the that it would add to
the strength of our merchant marine without the
delay of waiting for constructions; that 1t would
provide steamers under the American flag to carry
mails and merchandise; and that government
owned vessels would in effect regulate the rates
charged by private lines for freghts. On the
other hand, it is certain that the United States
cannot contribute millions of dollars to the war
funds OF European nations, which would be the
practical effect of the purchases, without exciting
international protest The State Department has
already been advised by certain powers that they
cannot look with indifference upon the proposed
action and many members who might favor the