Omaha daily bee., 1916-01-12
NEWLANDS ATTACKS
HIS PARTY'S RECORD
Nevada Senator Says European War
Counteracted Blunders and
Saved It from Defeat.
NEW TARIFF ACT IS FAILURE

senate today, delivering a long pre-
pared speech in which he criticised
we tariff and banking reforms--the
0nief legislative achievements of the
Ss1lson administration. He declared
iAat because there had been indus
SIial and commercial depression CO
terminous with democratic control Of
legislation. the party would be in
danger of defeat at the next presi-
drntial election unless the European
wzr continued, and made the presi-
dept's "sagacious and firm handling
81 foreign affairs the overshadowing
issue.
Although he characterized the general
trend Of democratic legislation az COM
mendablc, the senator asserted that the
party was TOO radical and expressed the
conviction that no political party can
hope 10 remain in power which adopts
tsdical instead Of evolutionary methods
u bf reform"
MAR saved Party Two Years Ago.
Danger Of a democratic defeat in the
4 congressional elections or 1914. ne said
o..
I N hish brought Into sudden contrast the
Presidents policy OF watchfm waiting
q fegarding Mexico. with the made haste
pf the European nations as they rushed
snto war. and which made that policy as
popular as It had heretofore been un-
4 popular.
The realization that similar prudence
tvould keep US out OF European COM
plications," he added, saved the party
~ the last election from the defeat
(Which would have surely come as the
Result OF general prostration OF bust.
hcss, popularity attributed 10 our
economic legislation
1t would not do to charge this to the
European war first. because that war
Enough injurious to our production and
Trade in its inception. has since become
~ stimuiaDt to production and export
4nd, second. because the commencement
this depression antedates the Euro
pean war and was contemporaneous
asith our legislation regarding the tariff.
barking and trade.
Will Face United Opposition.
We are about to face a united re-
publican party. chastened by adversely
. hnd eager TO persuade, and the question
4 Is whether the democratic party, having
done much under this administration In !
fhe interest OF genuine reform Is again
e. be thrown out OF power and deprived
4 bf the opportunity of com tinued useful
hess simply because 'an intervening
period OF depression subjects us again
30 the charge OF democratic hard times
with its accompanying loss OF votes
III 1t is safe TO say that the manufae- |
Curing, the banking and the large cor
. -.
frstic party. and that their employees
pre- also preparing to throw their weight
Pgainst II simply because It's administra-
Zion had not brought good times. but
pm the contrary has. In their Judgment.
brought bad times.
HI New Tariff Law Failure,
"Regarding the tariff. my view was
hhat our undertaking was not to inn
pnediately adopt a theoretically correct
4ariff system, but simply TO climb grad
Nally down from the protection heights
hpon which the republican party had
placed the manufacturing interests of
the country not to Jump down at the
FisiS Of destruction. but to cllm down
SLOWLY and laboriousy with a view TO
preserving. as far as practicable. every
AMERICAN Industry and iniuring none.
When we came to a practical realiza-
Rioh OF what We had promised by leg
dsation, we were inclined. / thought, to
go too fast and too far.
The effect OF tariff legislation was
hat feared Il would be. The tying up
.of production in this country was the
,result not OF malicious effort OF the
manufacturer to teach the country
.lcsson, but OF the caution and timidity
Which can In many cases be proved 20
he without reason. but which. neverthe-
less, always exists under like condi-
ti2m
BRnking Act Partisan.
80 also with banking legislation: In.
stead Of providing some simple method
for mobillzing the banking reserves OF
state and national banks under the con-
troll OF a non-partisan board or commits
sion Resembling the Interstate Commefce
commission. which would gradually
through powers OF investigation. pub
lieitx,s correction and recommendation TO
congress. work out further reforms. we
were intent upon legislation which
alarmed the banks by the isrgeness OF
our proposals.
We fai'ed TO make the reserve board
non partisan. tied II TO an executive de-
paftnept through the membership OF the
secretary Of the treasury and the comp
troller. subjects the member bank to the
investigstion and correctional powers OF
= single partisan comptroller. instead OF
The composite Judgment Of a quasi
1odieial nOn-psrtisan board. and exacted
additional and unnecessary capital from
member banks. thus organizing the re-
serve associations into profit-maklne in
stituuons. purpose entirely foreign TO
TIER natnre. as prospective orga mutations.
The result Is that the union OF banks
is incomplete. the state half being out
s-'e- and the national half inside the re-
serYe organization. with the prospect
that those outside will remain so. unless
the Law is modified.
Noaid Modify Reserve Act.
y think IL would be wise 10 shane the
way for legislation during the next ses-
sion by making the reserve board non.
Partisan. merging the comptroller's Of
fice with all the powers and duties in the
reserve board. ana doing away with an
capital requirements beyond the per
centage Of reserves OF member banks now
requhed."
Senator Newlands said that while there