Semi-weekly herald., 1915-01-04
congress Review
Of the Past Year

congress over New Years day. Ex-
cept for six weeks adjournment,
the national legislators were in con-
tinuous session from January ~,
1914, until today. This statement
would not be fair, If allowed to stand,
however, without the further COM
ment that prior to January 12, con-
gress had been in session continuous
ly since the incoming Of the Wilson
administration, March 4, 1918.
Perhaps the most important piece
Of legislation enacted during the year
was the law providing for the new
banking and currency system. Gre
ating from 8 to IL regional reserve
banks (later fixed at 12), under the
direction of federal reserve board,
and providing for the reserves of all
the national and many of what had
previously been state banks, to be
kept with the federal banks, instead
Of with correspondent banks in CEN
tral reserve cities, as previously, this
was probably the most radical reform
in the currency system of the coun-
try ever put into effect. The pro-
vision for the discounting of COM
mercial paper by the member banks,
and the issuance of new currency to
cover this discounting by the reserve
banks, provided what was thought to
be a strong preventive Of panics,
and provided also sure remedy
against temporary stringencies in the
amount of actual currency on hand,
especially at such times as when the
crops are moved.
Another act of the year, that pro-
viding for the construction of rail-
road in Alaska at cost of $35,00O,-
900, and its operation after compile
tion by the government, was tre-
mendously important from two diff
ferent viewpoints. 1t provided for
the opening up for use by the peo-
pie of what President Wilson is fond
of calling that storehouse of riches
Incidentally, it is regarded by some
as long step toward government
Ownership of all of the railroads. Ger
tainly, as it is operated year by year,
it will form at least the basis of a
comparison with the privately owned
railroads in the United States.
One of the bitterest fights of the
year was over the repeal of the tolls
exemption clause for American own
ed coastwise ships passing through
the Panama canal. The passage Of
this act means that every coastwise
ship passing through the big ditch
will have to pay its way, just as
though it were an American ship in
the foreign trade, or for that matter
a foreign owned ship.
Two important measures of the So
called antitrust program were enact
ed during the year. One Of these
created the federal trade commission,
which will exercise much the same
sort of power over industrial cor
porations as are exercised over the
railroads by the interstate commerce
commission, thus bringing both sorts
of companies under federal control.
A number of important bills were
passed by the house which were not
enacted because of the failure Of the
senate to pass them. These include
the immigration bill, including the
famous literacy test, which would re-
strict immigration, and modify the
rules regarding it to meet the opin-
ion of number of authorities on
immigration. Two of the most i'm
portant conservation bills, that pro-
viding for the leasing of water pow
ear sites now withheld from entry
and the general dam bill, were also
passed by the house but not by the
senate during the year, while one
bill, the La Toilette seamen's bill,
passed both houses (the senate prior
to this year, however), but in such
different forms that no agreement
was reached during the year between
the two houses.
Congress passed a resolution JUS
tifying the presidents action in or
dering an invasion of Mexico at Vera
Cruz following the incult to the Am
erican flag at Tampico by soldiers d.
rectly responsible to Huerta, at that
time dictator of Mexico.
Twenty-six peace treaties, most Of
them the breathing spell variety,
providing for one year to interpose
after any overt act before any hos
tilities should occur, were ratified by
the senate. The upper house also
received more than 5000 nominations
from the president, and ratified most
Of them.
There were bitter fights over many
Of them, incidentally, especially Paul
M. Warburg and Thomas D. Jones,