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PAGE TWO
‘Public Opinion Throughout the Union
NOW KILL THE VREELAND BILL.
When the members of the House banking
and currency committee, by a unanimous vote,
killed what was left of the Aldrich bill, they
did good service to the country. They will
earn more praise by promptly tabling the sub
stitute offered by Congressman Vreeland, of
New York.
Speaker Cannon announced in his arrogance
last fall, when all legitimate business men
were looking to congress for relief measures,
that no plan would be considered, save that
any measure passed by the senate would be
approved by the House, under his orders.
Thereby he served notice on the country that
it must submit to Wall street’s commands an
nounced by Wall street’s spokesman —Aldrich.
But congress heard from the country. The
Aldrich bill, as passed by the senate, was a
maimed and tattered thing. Its author was
forced to submit to amendments that were
antidotes to the worst evils’ of the original
poisonous proposals. It was still worse than
nothing. But much of its power for harm was
gone.
And now, in the House, the pleasant sight
is offered of representatives rising to the call
of their constituents above their dread of
Cannon’s tyranny. He has been forced to
submit to the defeat of the vicious measure he
championed. What now needs to be done is
to administer an even speedier death to the
Vreeland substitute.
It is the Aldrich bill, with the exception of
some alterations, half of which are bad enough
to make the measure, if anything, worse than
the Aldrich bill in its amended form.
It drops the Johnston amendment, covering
retention of reserves in cash, and the La Fol
lette amendment, forbidding banks to invest
in stocks of corporations in which officers
or directors of the bank arg interested. These
two changes are enough to warrant the death
sentence.
It add*? an asset currency provision, under
which ten or more national banks, with a
capital and surplus aggregating $10,000,000 or
more, may form a national clearing house as
sociation which, under certain regulations and
restrictions, will be empowered to issue cur
rency upon commercial paper.
Thereby it will be seen that a sop is thrown
to financial sanity by making commercial
paper a partial basis for currency. Business
men, however, have learned some costly les
sons of late. Their answer now will be, “If
good for a part, why not for the whole?”
If every European country makes commer
cial paper the sole basis for emergency cur
rency, why restrict the bulk of such an issue
here to bonds, of which Mr. Vreeland, himself
a banker, admitted only yesterday to the com
mittee that during the panic they were “not
worth more than a bale of hay, so far as get
ting cash was concerned”?
Congressman Fowler’s proposal for the cre
ation of a commission to study the whole ques
tion and to frame a scientific financial and
currency system is the only honest currency
THE JEFFERSONIAN.
bill now before congress with any chance of
passage. Let that be adopted, and the Vree
land scheme sent to join its twin in the tomb,
and the country will be content, not with re
ceiving its due, but at least with the check
mating of Aldrich, Cannon and Wall street. —
Philadelphia North American.
THE WALL STREET PROBLEM.
The World, on March 8, urged the State
and national legislatures to “reform the bank
ing business to prevent the exploitation of
the people’s savings against the people’s in
terest by unscrupulous financiers.”
A part of this comprehensive program o's
banking reform is now accomplished. The
passage of the state banking laws advocated
by Superintendent Clark Williams is a great
victory for sound finance. To other states
and to the federal government they should be
an example.
Hereafter trust companies in Manhattan
must carry a 15 per cent money reserve in
their own vaults, those in other boroughs a
15 per cent reserve, of which one-third may
be on deposit elsewhere, and all other trust
companies must have a 10 per cent reserve;
the receivership scandal is abolished; state
banks in Manhattan must carry a 25 per cent
reserve, of which only two-fifths may be on
deposit; those in Brooklyn must have a 20 per
cent reserve, half in their own vaults, and
other banks a 15 per cent reserve, two-fifths
in their own vaults. Other provisions of the
new laws increase the safety of loans and
limit the dangerous power of directors.
Except the killing of the Aldrich bill, a
negative victory, congress has done nothing
for safe banking.
New York has made a brave beginning, as
befits the state wherein are the chief financial
institutions of the country, and where the evil
of the alliance between stock-gambling and
banking is greatest. But New York should go
further. It should increase the tax on stock
sales, provide for the registry of brokers and
put an end to the conditions which permit
brokers to cheat the State out of more than
$2,000,000 a year of the transfer tax. It
should also investigate an unincorporated and
irresponsible stock exchange preparatory to
intelligent legislation dealing comprehensively
with the whole subject of stock-gambling.
Probably stock-gambling can never be stop
ped, but the state should do its utmost to limit
its power for harm. —New York World.
A PEEVISH PEERLESS LEADER.
This irritation at New York’s action will
injure Bryan. It will call the country’s at
tention prominently to the fact that under no
conditions can he receive that State’s elec
toral vote in November. And of course, as
Bryan and everybody else knows, without
New York’s vote he has not the slighest
chance to win. But by proclaiming before
hand, through one of his prominent promoters,
that New York will be against him in the
election Bryan is fixing things so that he
will lose votes in other states which he would
otherwise get. In order to carry out his pro
ject to get the candidacy for 1912, he must
roll up as large a vote as possible at the polls
in 1908, even though he knows that he will
lose.
Equally foolish is it for Bryan to show the
irritation which he has just displayed over the
turning down which the Michigan Democratic
State Committee gave him. In attributing
that action to bribery by the friends of Gov
ernor Johnson, of Minnesota, he angers John
son’s friends as well as the friends of all of
his other rivals in Denver, and gives them a
chance to put up a hard fight against him. —
St. Louis Globe-Democrat.
JOHNSON AND DOUGLAS.
It follows, then, that if Governor Johnson
of Minnesota is nominated for President it
would be a great thing to name ex-Governor
Douglas of Massachusetts for vice-president.
That would make an exceptionally strong tick
et and it would practically insure the carry
ing of two Republican states. Both Johnson
and Douglas are highly thought of, much re
spected and esteemed by the thinking people
in both parties. They are safe and sane. They
are good regular and fully able
to poll the full party vote. Both have demon
strated their local strength and popularity. If
they could be on the ticket together it would
be a great help to the cause. Each
elected governor in a Republican state on the
Democratic ticket. If running together it
would be reasonable to prophesy and fair to
aassume tht Minnesota and Massachusetts
would stand by their favorite sons. For pure
ly political purposes and as well for the good
of the country in ease of Democratic success,
that would be a most excellent arrangement.—
Utica Press.
ONE REASON ENOUGH.
The Philadelphia Press, an administration
organ, gives half a dozen reasons why Secre
tary Taft should resign, and resign nowj in
stead of waiting until nominated for the Presi
dency. One reason alone is sufficient. It is
that the office he holds pays for the full time
of its occupant, and should have what it pays
for. —Springfield Republican.
AGGRESSION AT BOTTOM.
Say what big-navy advocates will about
their desire to keep the peace of the world
by arming to the teeth, the whole thing is
necessarily hollow. They talk of defense, but
their thoughts are really of aggression. This
crops out inevitably in the President’s mes
sage.—New York Evening Post.
HILL AND JOHNSON.
Governor Johnson, of Minnesota, denies be
ing James J. Hill’s “man.” Yet tlie fact re
mains that he is permitted to dwell in Mr.
Hill’s state. Mr. Bryan regards this as a
pretty suspicious circumstance. —Kansas City
Star.