The Chesterfield advertiser. [volume] (Chesterfield C.H., S.C.) 1884-1978, 1920-03-04
WAS PREPARED
CONGRESSMAN STEVENSON
READY WITH ANSWER
WHEN CALLED
Replies To Banker Statesman Show
ing Complete knowledge OF
Financial Systems

The opening gun what looks like
light that is to be waged by the Re-
publicans for a material contraction
of the currency, if not the eventual
abolition of the Regional Banking
system was fired in the house on
Thursday of last week by Representa-
tive Luce of Massachusetts,, and re-
piled to by Congressman Stevenson of
South Carolina.
All the indications are New Eng
land and New York are thirsting for
currency contraction so as to bring
about a reduction of the cost of raw
materials of all kinds including farm
products, as we'll as salaries and
wages, so as to increase the purchas-
ng power of money already accumu-
ated, with a view to clinching and
maintaining the financial advantage
the northeast has 80 long enjoyed ov-
er the south and west. In other words
the northeast wants restoration of the
prewar status under which, from the
foundation of the government, it had
teen able to drain the south and west
of whatever they had under condi-
tions of handicap from which it was
never intended that those sections
should ever be allowed to escape.
Under the old national bank sys-
EN-, controlled by a self-constituted
coterie of financial sharps in New
York, New England and Chicago, low
ates of discounts were allowed to the
took and produce market specula-
tors, of luxuries and the like, while
from farmers, producers of raw ma
terials of all kinds and even manufac-
turers (outsde of certain favored To-.
calities) were eXacted ruinously high
rates in proportion. The regional re-
serve bank under Democratic
arrangement has reversed this policy,
and seeing in the eventual outcome
an equitable readjustment of old con-
ditions, the northeast has resolved
upon a struggle in which it will stop
at nothing to get back it's former con-
troll.
Former Governor Luce, Of Massa-
chusetts, one Of the foremost financi-
al experts of New England and a
member of the committee on banking
and currency was selected by the Re-
rublicans to open the battle which he
did in carefully prepared speech of
thirty minutes. 1t fell to Mr.. Steven
son, also of the same committee, as
the best equipped expert. on the
Democratic side, and although with
out previous warning, and having but
ten minutes of time, he not only
withstood the onset; but left his op-
ponent considerably distigured.
Mr.. Stevenson's speech as publish
ed in the Congressional Record is as
follows:
Mr.. Byrnes of South Carolina. Mr..
Chairman, l yield 10 minutes to the
gentleman from South Carolina (Mr.
Stevenson).
Mr.. Stevenson. Mr.. Chairman, we
were met few minutes ago with the
tatement that we were flooding the
ountry with fiat money, a statement
made by the distinguished gentleman
from Massachusetts (Mr. Luce). AS l
fave always understood the PROPOSE
ion, when you said "fiat money" you
meant money issued without an ade-
quate reserve for it's redemption; and
think the gentleman from Massa-
chusetts will agree with me on that
proposition.
The gentleman refers to the re-
ports Of the treasury of the United
States which we receive from time to
ime, and he says that we are increas-
ng the imitation from time to time.
If he will look carefully at the re-
ports Of the treasury, he will find that
for every Federal reserve note there
8 in circulation there is a gold re-
serve in the United States treasury
and in the Federal reserve banks,
unning up to nearly cents upon the
dollar, the highest reserve that any
civilized nation has ever been known
maintain against it's note issues.
The gentleman says the imitation is
what is destroying our industrial fab
ric. Now, the gentleman evidently
wants to hark back to the days when
money was controlled by private in
stitutions known as national banks.
When he refers to fiat money, with
40 per cent. minimum gold reserve
against every dollar, what does he
SIX us to return to but the old nation
fl bank note, with per cent. of gold
as reserve fund, with which this
country was flooded for so years dur
ng the administration of the party
which the gentleman represents and
which he would have take charge
again?
Not only that, but the Federal re-
serve notes are issued as the emer-