The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1924-09-13
SHADOWS OF MONEYED BAND
LURK BEHIND CURRENCYBLLL

I will act on your suggestion, and
with the support Of the administro-
ton next fan We will have a good
show Of getting some action"
He did not recommend the legis-
lation IN his message. Instead. he
put in a statement hat no legisla-
lion Of the O was necessary; than
the Interstate Commerce Comm1s-
sion should proceed under the law
just as it was. And that was the
end Of the valuation Of railroad prop.
erty under the Taft administration.
1t was acts such as these. to
Eether with his attitude upon the
tariff question, his failure 70 sup
port the plain pledges OF the party,
his interference in behalf Of Cannon.
his use Of patronage 10 discipline
members. his alignment with Aldrich
and the stand-patters Of the party.
and his whole course in the Ballinger
affair. which absolutely alienated the
Progressive group.
One of the most important mea-
sures which has come before the Sen
ate since | became a member is the
Aldrich emergency currency bin. aft
erward known as the Aldrich-Vree-
land currency bill. In some ways
no bill ever introduced in Congress
was more significant Of the control
Of legislation by great financial in
tereSts.
This bill proposed an issue Of $500
900. 90 of additional notes to national
banking associations, such issue to
be based upon State bonds. munich
pal bonds, and as reported by the
committee and advocated by Sena-
tor Aldrich, railroad bonds as well.
Panic of 1907
The country had just gone through
the panic of 1907 and banks and
business had been made to feel the
pinch. There was a plausible rea-
son to urge, and, indeed, considering
the character Of our currency sys-
tenn and the imperfection of our
banking LAVISH, a sound reason, for
making provision against a sudden
withdrawal Of the money necessary
for the daily exchanges Of business,
whether such contradiction was due
to the fear resulting from a panic
inauguration for speculative pur-
poses or otherwise. For eve a man
aged panic may become unmanage-
able.
There were reasons back of the
emergency features of the Aldrich-
Vreeland currency bill nor impor-
tant vastly to the interests than
those prominently urged.
IT was inevitable that the years Of
stock-watering and promotion, the
initiation of railway securities. indus
trial securities, mining. traction, gas
and electricity, should bring It's har-
vest Of 1narciaI distress and reac-
ticn. It was inevitable that the
crime Of over-capitaliZation should
meet it's punishment There was
Urgent demand that these securities
should he restored to public con
ddence.
The emergency currency measure
offered the opportunity, and for the
t:rst time in history it vas proposed
that railroad bonds should be
wrought into our monetary system
as a basis for currency issue.
When l. entered the Senate in 1906,
as before stated, I had proposed as
an amendment to the Hepburn rate
bill a provision authorizing and di-
recting the Interstate Commerce
| Commission to make such valuation
as a basis for establishing reasonable
rates. The Senate had voted down
my proposed amendment
For two years I had awaited an
opportunity to offer my amendment
providing for valuation to any mea-
sure pending before the Senate to
which it would be germane.
Apparently it had W. occurred
to the committee reporting the cur-
rency bill that my valuation mea-
sure, which had bee nbottled up in
the committee on interstate COM
merce, would be germane as an
amendment 10 the railroad bond pro-
vision in the currency bill.
Copyright, 1924, NEA Service, Inc.)
Continued in Our Next Issue