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The Commoner.
JSSUED WEEKLY
Entered at tho PoBtofllco at Lincoln, Nebraska,
an second-class matter.
WJM.1AM J. UllVAN
Kdltornml I'roprJotor
KiciiAni) I Mj.tcai.kk
Attodnto Ktlltor
ClIAUI.KH W DllYAN
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Nix Month CO
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THE COMMONER, Lincoln, Nob.
a lifetime of energy, application, and honest
dealing destroyed. Mr. Jones, in obedience to
tho domand, resigned and Mr. Hugh Kelly was
elected in LL place.
"Mr. Kelly, who had returned from Europe
only two days previously, sought a hearing be
fore tho gentleman who had thus condemned Mr.
Jones and demanded to know how far ho could
rely upon protection and aid of the clearing
house if ho accepted the presidency and was told
in unqualified terms that ho and the bank would
bo protected to tho end of tho trouble.
"How tho pledgo given him at that time has
been carried out is easily seen by the bank's sus
pension two months later, on January 1, while
in a condition of absolute solvency. Then,
without previous discussion of the subject with
tho officers of tho Oriental, came the demand,
publicly announced, for the retirement of the
outstanding clearing house certificates before
February 6. In previous periods of financial
uneasiness certificates had been permitted to
run for six months or more. In this instance the
larger institutions had recoverod their deposits
and their equilibrium in shorter term and then
tho situation resolved itself into a case of 'tho
devil take the hindermost.'
"Tho fatal blow had been Btruck at tho
Oriental and the run, both over tho country
and through tho exchanges which followed, com
pelled tho closing of its doors. Subsequent
events provo tho monstrous injustice that was
done to it and to its president personally. Tho
latter was made use of to satisfy a condition
that threatened not merely the Oriental, but
every clearing house bank in Now York at that
time. When that condition was past, tho en
gagements made with him were forgotten.
"Within ton days of the closing of the bank,
tho depositors had been provided for and paid
and its clearing house loan certificates retired,
all by its own resources. Thus is its solvency
proven."
Mr, Untermeyer then brought out testimony
showing that at the time of its suspension, the
Oriental had collateral up with the clearing
' house for twico tho value of its loan certificates;
that it liquidated assets twico tho value of its
capitalization and that at tho time its troubles
began, was paying 12 per cent dividends.
Manager Sherr of tho clearing house, on the
stand, denied tho assumption of Attorney
Untermeyer that tho clearing house association
and tho railroads both are instruments of the
Interstate commerce.
"No one is obliged to join the clearing house "
Mr. Sherr said, "but those who Join havo to
livo up to the rules."
He also took exception to a statement that
expulsion from tho clearing house necessarily
"spelled ruin."
Mr. Untermeyer then tobk up tho subject of
the clearing house loan certificates issued dur
ing tho panic of 1907.
The witness testified that as a sequence of a
demand made by the clearing houso upon four
banks for tho payment of their certificates
they closed their doors. These banks were tho
The Commoner.
bank of North America and the New Amster
dam bank, which were known as Charles W.
Morse institutions, and the Oriental and Mer
chants' and Traders' banks.
Mr. Sherr identified a letter sent by the clear
ing house commission to tho banks in question
on January 25, 1908, in which it was said it
"was the desire of tho committee" to redeem
all clearing house certificates beforo February
C. This letter was withdrawn subsequently, Mr.
Sherr testified.
Subsequently all certificates wero paid by the
several banks, and with one exception the col
lateral deposited against the certificates was
sufficient to cover them.
"Had tho sending of these letters anything to
do with the insolvency of tho banks?" asked
Mr. Untermeyer.
"No."
James G. Cannon, president of tho Fourth
National bank, and a member of tho clearing
house association committee, the next witness
explained that the refusal of his bank to fur
nish information to the committee as to its
"private affairs" was based solely upon the ad
vice of the bank's counsel.
Tho Fourth National, the witness admitted,
had furnished such information to the examin
ers of the clearing house.
THE COUNTRY IS DEMOCRATIC
Delegates to the democratic national con
vention will do well to seriously ponder on an
editorial printed in the Nashville Tennessean,
and entitled, "The Country is Democratic." Tho
editorial follows:
This country is more democratic now than
ever before. Even the republican party is try
ing to be democratic.
Many of the republican congressmen have
been voting for democratic measures. They
have done this in response to the demand of
their constituents. They have been forced to
follow the trend of the times in accepting those
things which the democratic party has long been
fighting for. They havo demonstrated by their
votes that they and their party are getting to
bo democratic.
Just at this time, when the whole country is
getting to be democratic, it would be the height
of absurdity and the essence of folly for the
democrats to retrace their steps from their
rightful position as progressives and take up the
reactionary policies about to be abandoned by
the republicans. It would bo suicidal for tho
tho democrats to now become republicans, as
it would be the salvation of the republicans to
become democrats.
There are some democrats who want these
inter-changes of position to take place, but the
number is small, constituting a helpless mi
nority, that will not be able- to direct the nomi
nation or to write the platform at Baltimore.
This being true, the democratic party will re
main democratic and meet its obligations to tho
American people.
A cowardly surrender in the face of a public
duty to boldly and fearlessly meet tho public
issues would be fatal.
The democratic party must continue to be
progressive.
To become reactionary in tho moment of its
prospective triumph would mean disaster to tho
Partv ttnd the things for which it has so long
existed.
Let the republican party be what it may in
this hour of its extreme peril, the democratic
party must remain democratic.
better Watch this
An organization known as the National Citi
zens league is pushing what it calls "the pro
motion of a sound banking system." It looks as
if this National Citizens league wero working
iXJ i?01?.6?881 of the Aldrich bill or some plan
of that kind. The democrats of the country had
better be on their guard. The friends of a
central bank know that they can not secure a
central bank by open advocacy of it, but it looks
??fD ijrWeife try!?g t0 secure lt by indirection.
It is well to be on tho watch.
WHAT A CHANGE!
Newspaper correspondents assure us that a
few years ago Mr. Roosevelt said that ho would
crawl on his hands and knees tho length of
Pennsylvania avenue to make Elihu Root presi
dent of the United States but now ho is unwill
ing to trust him as temporary chairman of a
republican national convention. What a chance
but it can not bo forgotten that Mr. Roosevelt
now denounces as a "crook" a man whom ho
picked as his successor.
, VOLUME, NUMBER 2S
CONVENTION OP. 1844
The two-thirds rule was adopted by the first
democratic national convention which met in
Baltimore in 1832 and nominated Andrew Jack
son. It has been adopted by every democratic
national convention for eighty years. It worked
well before the civil war; it has worked well
since that time.
Attempts have been made to abrogate tho
rule, usually in the interest of some particular
candidate. Not a few of Woodrow Wilson's
friends protested against it months ago when
they believed Wilson would have a majority.
Now the supporters of Spqaker Champ Clark,
who has the largest number of delegates, oppose
the rule as militating against him. Mr. Clark
himself says:
"I do not know whether the two-thirds rule
will be enforced. It never has been enforced
but once, and that was against Martin Van
Buren in 1844. In all other cases the man who
received a majority was given the necessary
two-thirds majority; but, nevertheless, the two
thirds rule may be enforced, and I may or may
not secure the two-thirds majority." '
The single case to which Mr. Clark refers is
the most striking instance of the wisdom of
enforcing the rule. That convention of 1844
was held in Baltimore. There were 26 G dele
gates present and Van Buren on the firnt ballot
received 146 votes, a clear majority of 26. As
soon as the convention was called to order Van
Buren's friends began the fight against the two
thirds rule, led by Benjamin F. Butler and
Lieutenant Governor Dickenson of New York.
Morton and Rantoul of Massachusetts; S. Me
dairy of Ohio, and Walker of Mississippi de
clared that while New York with 36, Ohio -with
23, Pennsylvania with 26, New England with 29
and a few other states "exhibited a majority of
votes in the convention," they "certainly repre
sented a large minority of the democratic
party." They wanted to know what was the
use in giving Van Buren "the empty glory of a
nomination by a mere majority." The debate
lasted far into the next day, and the rule was
again adopted, 148 to 116. The account of the
proceedings is taken from the files of the Sun
for 1844, this newspaper containing the fullest
account printed of that notable gathering.
. Beginning on the first ballot with 146 to 83
for- Cass and 24 for Johnson, Van Buren re
ceived 127 on the second ballot and 121 on the
third. The eighth showed 104 for Van Buren
to 114 for Cass, 44 for James K. Polk, 2 for
Buchanan and 2 for Calhoun. The convention
was in a deadlock and it was realized that the
southern delegates would never consent to the
nomination of Van Buren. Tho leaders began
the search for a candidate who would bo accept
or t,1? a11 factions- They found him in James
K. Polk of Tennessee. For two days the bit
terness had been intense, supporters and oppon
ents of Van Buren denouncing each other on the
floor. When the call of the ninth ballot began
state after state fell in line for Polk, and before
the vote was announced his nomination was
made unanimous. The Sun of May 30, 1844,
says: The enthusiasm which now prevailed
in the convention was in striking contrast with
the proceedings of an hour before," and "con
sent " Increase until the hour of adjourri-
f,Ian Buen, had been defeated by Harrison
four years before, getting only 60 electoral votes
foH!rI!r0n B 2li' Polk B0Pt the country, de
feating Henry Clay 170 to 105. If Van Buren
ten n,0Ininated, Clay almost certainly
HSmn ?w defeated M. "s opponents must
fnmT,i lail t?6 .-thirds rulo was vindicated
If woo 1, y lnstanc? Mr. Clark finds in which
it was enforced against any candidate.
ennda1mCra.tic party Is very mu in the,
S??P18I?0nvltwa8,n 1844' ThQ republicans'
fion TPf n,f' mt a discredited-administra-i
Mnrtwi? 7 nomInate Roosevelt, they wili havo
div rn, ,5S POpUlar as Henry Clay w in his
onf; if Si Lti0n? favor democratic success, but
2J?y iff nominate a candidate who can com
' ESS? and fhfff unanlm aupport of the
2v??? confldence ot the nation. If thero
ZZZ if me "V6 two-thirds rulo was
meat t Lw nW' Tho deleeates will again
meet in Baltimore, as they did in 1844. This
w entenr S"11?? affair. No candidate
. fl!?i the conveition with two-thirds of
one St nd th?. PwfcaWHtleH are tnast no
time for wlhe,2 " maJority. This is no
live onnn lfCti5n' Tno two-thirds rule will
give opportunity for deliberation, tho sober
nf ??f at? whcan command the solid support
of. the party and can sweep tho country in No
vember.Baltimoro Sun. OUIry in r
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