New-York tribune., 1916-01-12
Tells His Fellow Demo
Gratis They Have Made
Serious Mistakes.
SAYS WAR ALONE
WILL SAVE THEM
Nevada Senator CritiCises Will
son Tariff Policy and Re-
serve Bank System.
From Tho Tribune Bureau. ]

posing the weaknesses and mistakes of
tho first three years OF the Democratic
administration, Senator Francis G..
Newlands. one OF the Democratic lead
ers Of the upper house of Congress,
warned the party to-day that it had
"siX months in which 10 do things that
ought TO have been done and TO correct
mistakes"
The criticism was not made harshly.
All through the speech were evidences
that the Senator had done his best not
TO make an attack on the Democratic
party which would be good material
for the Republican campaign book. I'm
derlying the comparatively mild Ian
guage, however, was the sting that in
nearly every piece Of big legislation
written on the statute books under the
whip OF the administration glaring mis-
takes had been made.
"The Democratic party is within a
year Of an election which will deter
mine whether its lease of power shall
continue or end" said Mr.. Newlands.
at is q time for mutual candor and
counsel and for efficiency of methods in
devising and carrying out definite
Legislative programme"
Fear Fatal to Democrats.
Mr.. Newlands commented on legis-
lstive programme he had outlined prior
to the election of 1914 and said:
"Since the commencement Of the
Civil War, a period of fifty-fve years,
the Democratic party has been in pow
Ell nationally only eleven years, and of
that period only four years cOnsecu-
lively. in every instance losing power
as the result of the fear or the resent
ment of the business classes, with their
accompanying conditions OF unemploy-
ment, which made most potent with the
workngmen the full dinner pail argu-
ment and caused them reluctantly TO
! yield to the persuasion and coercion Of
our opponents.
we were in similar danger at the
Congress ional election of l9l4-a dan
ger only avertcd by the European war.
which brought into sudden contrast the
Presidents policy of watchful waiting
regarding Mexico with the mad haste of
the European nations as they rushed
into war and which made that policy
a. popular as it had heretofore been
unpopular The realization that SINH
lar prudence would keep US out Of Eu-
ropean complications saved the Demo-
cratic party at the last eletcion from
defeat which surely would have come
as the result of the general prostration
of business, popularly attributed TO our
economic legislation.
at is true that the intervening
process Of panic has not been expert
enced, but an industrial and CONNER
cisl depression has been experienced
and has been coterminous with Demo
cratic control of legislation. 1t would
not do 70 charge this TO the European
war, first. because that war, though IN
furious TO our production and trade in
its inception. has since become stlmu
liant 20 production and export, and.
second. because the commencement OF
this depression antedates the European
war and was contemporaneous with our
legislation regarding the tariff, bank
ing and trade.
Party Danger in Peace.
"The recent elections indicate that
we will be in similar danger at the
coming Presidential election, unless
the European war continues and makes
the Presidents sagacious and ilrm
handling of our foreign affairs the
overshadowing issue. But. If that war
soon comes to close and the manu-
facture OF munitions ends and added
10 this source OF unemployment our
markets now protected by the war
from invasion are overwhelmed by the
cheap products Of the nations just
emerging from war and eager TO get
back their gold we may have not only
an aggravated industrial depression 70
meet. but financial condition fruitful
of paralyzing caution. Such conditions
may make the election turn, not upon
our foreign policy, but upon domestic
economic conditions, and the 'full am
ner pail argument may again DC po-
tential."
Senator Newlands pointed out that
in both the Denver and Baltimore plat
forms there had been the promise OF
gradual reductions in the tariff, so that
the business interests OF the country
would have an opportunity TO ADJUST
themselves TO the new conditions, ana
continued: ,.
"The tying up Of production in this
country was the result, not or ma
6cious effort Of the manufacturers 10
teach the country a lesson, but OF the
caution and timidity which can IN many
cases be proved TO be without reason
but which nevertheless always exist
under like conditions.
"Candor will not permit me TO as
sert. as many Of its supporters do' tha'
worldwide causes were at the bottom
Of the general contraction OF produc-
tion following its agitation and pas
sage. IL is an indisputable fact that
the paralysis came before the Euro
mean war was inaugurated. and that lts
causes we're mainly domestic.
Banking System Complicated.
"So. also. with banking legislation.
Instead of providing some simple
method for mobilizing the banking re-
serves of state and national banks
under the control of non-partlsan
hoard or commission resembling
thc Interstate Commerce Commission
which would gradually, through pow
ers of investigation. publicity, eorrec-
tion and recommendation TO congress
,york ont further reforms, we were IN,
font upon legislation which alarmed
Tho hanks bv the largeness OF our pro-
posals.' Co..rotlor ot
the Currency Williams was con'aihso
IN Senator Newlands's comment on th'
frigid welcome extended TO the stal'
hanks TO come into the Reserve system
"Thev also hesitated.' said the sen
ator. referring TO the state bankss' t'
turn themselves over TO the lnquls'
torial and correctional powers OF th'
Controllers Office. shifting and htfu
4 80 .bo;r evercise and changing through