Warren sheaf. [volume] (Warren, Marshall County, Minn.) 1880-current, 1916-10-11

tional guard, could not, under the
constitution, be taken out Of our
country and used in a foreign war.
And as to our navy, it is admitted OH
all sides that it is far inferior to
that of England, Germany, and even
to that of France. How could any
sane man, under such circumstances,
harbor the notion of our making war
upon any of the great belligerents in.
Europe? The truth, in brief, is that
none Of the belligerents could wall
get at us, nor we at them. The only
war President Wilson has had on
his hands and suffered from has been
diplomatic war, and that has been
carried on by him with no credit OF
glory to our country.
Record of Democratic Party.
The chief claim, however, of the
Democratic party is In respect to
what they are pleased to call their
scheme of so-called constructive leg
islation. Great stress is laid upon
the laws enacted during President
Wilson's administration.
Currency Legislation.
In the fall Of 1907, there was a 80.
called bankers monetary panic in
New York city, which not only seri.
ously affected the banks in that city,
but also to considerable extent
affected banks in other parts of the
country. For time the banks in
New York suspended cash payments
and this led to the suspension Of cash
payments in many of the banks in
our large cities. The panic finally
subsidized and spent its force by the
end of the year without leaving the
havoc and destruction in its wake
that the panic of 1878 did. This
panic led to the passage Of the SO.
called Aldrich-Vreeland act of May
80, 1908, which provided for the is.
suance of emergency currency through
voluntary currency associations of ma.
tional banks and also permitted ma.
tional banks in certain cases to obtain
additional circulation, on other Sc.
security than United States bonds. The
act also provided for the appoint
ment of national monetary commits.
sion, ito inquire into and report to
congress what changes are neces.
sary or desirable in the monetary
system of the United States" and SO
forth. The commission made an ex:
haustive and thorough Investigation,
both at home and abroad. and gath.
cred a large quantity of most val
liable data and material, consisting
of many volumes, and finally made its
report to congress on the 9Th day
Of JAM, 1912, recommending, among
other things, the establi shment Of q
national reserve association. with a
capital Of 5000, 900, and with sub.
sidiary local, or branch, associations
throughout the country. Stock sub.
scriptions were to be limited to
national and state banks and to trust
companies, but was not compulsory.
"A bill to carry out the recommends.
lions Of the commission was intro.
duced, but no action was taken on
the same. / shall not at this time
enter into further details In regard
to the report Of the commission. It
is part Of the monetary history oi
this country, and much Of the com,
missions work was utilized and made
use Of In formulating the federal re
serve act, to which shall later on
call your attention. While emergency
currency associations were formed
under the Aldric iceland act, no
currency was taken out under It until
the threatened panic Of 1914, for the
reason that after the subsistence Of
the panic Of 1907 normal monetary
and business conditions prevailed
business was good, and money album
dant ct reasonable rates. BY its
terms the Aldrich-Yreeland act ex
pired by limitation June 80, 1914. IN
the federal reserve act the life Of
the Aldrich- Yreeland law was ex
tended for another year and re
|8duction Of the tar on the emergency
currency Was also made.
No Change in Tax Rate.
The act Of Aug. I, 1914, made nc
change ii: the tax rate, but removed
some other restrictions which were
not germane after the passage Of the
federal reserve law. The war IN Eu
rope, which was impending IN July
and broke out In the early days Of
August, 1914, threatened our country
with another monetary panic. The
great belligerent countries Of Europe
proceeded to dump upon our market
well nigh by the wholesale. .a large
portion Of the great mass Of Amerl-
can securities held abroad, and this
dumping led to tho outflow Of gold
in great volume, and TO money
stringency. Our great sheet anchor
IN this emergency, and which served
to stay the panic. was not the federal
reserve system, but the A1drichsVree-
land law and the currency issued
under Il Although the tax on this
currency had been reduced ana re-
strictions, rendered obsolete ~ the
federal reserve act removed vet