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The Commoner.
WILLIAM J. ERYAN, EDITOR AND PROPRIETOR
VOL. 13, NO.. 26
Lincoln, Nebraska, July 4, 1913
WhofeNumber 650
The Diggs-Caminetti Case
Tho editor of The Commoner has read with
deep regret tho editorial which appeared in tho
New York World of June 29, and is sure that
tho World editor will, on reflection, admit that
ho has done injustice to Attorney General Mc
Reynolds, Secretary Wilson and Immigration
Commissioner Caminetti.
Mr. McReynolds continued the case at the
request of Secretary Wilson and it was a
reasonable request. The New York World says
that it does not doubt that- Mr. McReynold's
motives were honorable.' If his motives were
honorable, how can his act justify a demand for
his resignation?
A continuance is not an unusual thing, and
does not mean a defeat of justice. If such a
continuance had been asked in an ordinary caso,
under tho circumstances it would havo been
granted without question by any attornoy
general. The fact that tho father of one of tho
defendants is a public ofllcial ought not to alter
tho case.
Neither can Secretary Wilson bo fairly
blamed. Ho declares that he was considering
the interests of his department and that ho
made tho request on his own initatlvo and with
out solicitation from Mr. Caminetti. No ono
who knows Secretary Wilson will question
either his honesty or his veracity. Why should
he resign? No one could make a more satisfac
tory secretary of labor than he is making.
As for Mr. Caminetti, wo have known him for
moro than twenty years, and have no hesitation
in saying that there is not a moro upright or
honorablo man in public life. Ho is a pro
gressive democrat and has, during tho last two
decades, been connected with all tho move
ments that havo had for thoir object tho ad
vancement of tho public welfare. It Is both un
just and ungenerous to say that ho should ro
tiro from politics becauso of his son's conduct,
oven though tho son has been guilty of gross and
criminal Immorality.
Tho president lias examined into tho facts and
approved the action taken by tho attorney gen
eral. When tho public lias had an opportunity
to consider tho ontlro caso, tho administration's
course will bo sustained. Its hold upon tho
pfubllo would bo frail, indeed, if confldenco In
it could bo destroyed or oven shaken by ono act,
oven If It could bo shown which is not possible
that that act was a mistake.
Mr. Bryan on the Currency Bill
Tho currency bill, prepared by Chairman
Owen, of tho senate, and Chairman Glass, of tho
house, in conjunction with President Wilson
and Secretary McAdoo, is now beforo the country
for discussion. It is known as the president's
bill, because his influence was paramount in re
conciling the differences existing between those
favoring currency legislation. Tho president,
in his messago to congress, urged immediate
action and was felicitous in the language that
he employed. He pointed out the need of legis
lation which will enable tho business world to
make use of its securities in times of emergency.
While he did not outline a measure, his message
should be interpreted in the light of tho bill
which has already been given to the public.
The first question to be considered is whether
there should be immediate legislation. It would
be hard to answer this question in the negative,
in view of the fact that tho need for currency
legislation has been emphasized in every
quarter and by all who have cared to express
themselves on the subject. Tho only justifica
tion that could be offered for delay would bo
that time is needed for an investigation of the
subject. This objection, however, can hardly
be made when it is remembered that resort has
been had to nearly every form of investigation
during tho last few years so that it may be
assumed that every one who desires to form an
opinion has had an opportunity to do so.
As a matter of fact, tho fundamental prin
ciples Involved in currency legislation are so
well understood that no delay, however ex
tended, and no investigation, however thorough,
would be likely to change the minds of those
whose duty It is to act upon the matter. A re
quest for delay may, therefore, be regarded as
a motion for a continuance made by those who
object to tho principles upon which the bill 'is
drawn; and a demand for further investigation
can fairly be considered In the same way. So
true is this, that it is quite certain that those
who now favor delay, in all probability, have
been the very ones to urge speedy action had tho
bill been differently drawn.
When tho bill is considered upon its merits,
one at once realizes that it is written from the
standpoint of tho people rather than from tho
standpoint of the financiers. Tho latter aro
quite unanimous in the belief that the Issue of
money is "a function of the banks" and that
"the goverment ought not to go into tho bank
ing business." Tho democratic party, however,
has consistently taken the position that tho
issue of money Is "a function of tho govern
ment" and should not be delegated to banks. It
all depends upon tho point of view from which
one considers this question or, for that matter,
any public question.
President Wilson, in his letter of acceptance
and in his speeches, reiterated his determination
to look at all questions from the standpoint of
the people rather than from the standpoint of
a privileged few. This was tho central theme
of his addresses and he can not well depart from
this position in the framing of a currency law,
especially since tho democratic party, has never
deviated from this position in its platforms. If
currency reform is to come under a democratic
president, a democratic house and a democratic
senate, it must como along lines in harmony
with democratic history and doctrine.
Tho bill involves three fundamental prin
ciples: First: Tho notes Issued must be issued by
tho government and not by tho banks.
Second: The issue must be controlled by pub
lic servants and not by private Institutions or
individuals.
Third: Tho emergency currency issued must
be Issued through state banks as well as through
national banks.
Tho bill as prepared observes these three re
quirements. Tho right of tho government to
issue money is not surrendered to the banks;
the control over the money so issued is not re
linquished by tho government; and national
banks aro not given a monopoly of the benefits
flowing from the issue of theso emergency notes.
Tho people, having safeguarded their rights
in the three particulars above mentioned, can
afford to deal liborally with tho remaining pro
visions of tho bill. The regional reserve banks
will prove of great advantage to business. Bach
reserve bank will bo a commercial center and
this contor will bo much nearer to tho oxtremes
than tho few large cities are to tho banks which
havo been compelled to reach tho public through '
them. Theso regional resorvo banks will glva
to the Individual banks a security for thoir re
serves that is lacking under tho present system
a security which will go far toward prevent
ing panics.
The national banks, however much they may
bo' inclined to object to the extension to state
banks of the right to borrow emergency treas
ury notes, will find this bill so advantageous as
to make them willing to accept its provisions.
Tho right to borrow treasury notes on an equit
able basis, without having to put up bonds, is a
distinct benefit, and yet a benefit which can bo
granted with advantage to tho community rep
resented as well as with safety to tho govern
ment. When a bank is compelled to put up
bonds as a security, it has already parted with
as much money as it can possibly borrow upon
them. Hence a bond basis reduces to a mini
mum the advantages to be derived from borrow
ing. Why should the government require bonds as
security for the loans to bo made when the other
security provided for is adequate? Tho govern
ment can have no Interest in prescribing onerous
conditions to the banking world. Tho regional
reserve bank, representing as it does tho banks
of its district, would be financially good for tho
money borrowed even if it was not required to
put up specific security, but its security is made
greater by tho fact that collateral will be put
up to secure each loan.
It is possible, under this plan, to provide Im
mediate relief to any section of the country, and
thus cure in the very boginning a condition
which, if allowed to continue, might precipitate
a panic.
It is not contended that the bill Is perfect in
detail. No one, or "even a fow, can hope to
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