wHrw;' "W ""
SEPTEMBER, 1913
The Commoner
23
eentativo Henry of Texas, and those
that had been following his move
ment to recognize as a basis of credit
and currency the commercial paper
of farmers based on corn, cotton and
wheat. In effect, the amendment
provides that paper is not to be dis
criminated against for purposes of
discount merely because the security
of that paper happens to. be supple
mented with tho collateral of a ware
house receipt: The modification
does not discriminate in favor of or
against any particular products, and
under it tho New England manufac
turer of cloth can present paper
hased on his products for rediscount
purposes just as can the grower of
wheat, corn and cotton. The right
and power to define and determine
tho character of the agricultural, in
dustrial and commercial paper
offered for rediscount is left to the
discretion of the federal reserve
board. The substitute section, modi
fying the second paragraph of the
rediscount section, known as section
14 of the bill, may bo found in the
Owen-Glass bill as finally introduced
in the house, August 29. This bill is
printed in full in another part of
this issue of The Commoner.
The administration currency bill,
after nearly three weeks of discus
sion, was finally approved by the
house democratic caucus, August 28,
by a vote of 163 to 9. After agree
ing to the bill, the caucus adopted
a resolution, by almost unanimous
vote, declaring the bill to be a party
measure and that "members of this
caucus are pledged for the bill to its
final passage, without amendment,
provided, however, the banking and
currency committee may offer
amendments in the house." Fewer
than a dozen changes were made in
tho nf the bill by tho caucus.
The alterations, while several of
them are considered important, in
volve in no way the substance or
structure of the bill. The approval
of the bill by the caucus means that
it will bo passed by tho house in
short order, as the action of the
caucus is binding on the democratic
members who have an overwhelming
majority. In addition to democratic
support, this measure will receive
tha sunDort of many republican mem
bers, and some progressives. The
measure was reintroduced in the
house by Chairman Glass. August
29, and referred to the banking and
currency committee.
Democratic insurgency was voiced
by Senator Hitchcock of Nebraska
in the senate, August 29, in a speech
condemning legislation by party
caucus. He was speaking in support
of his amendment on placing a grad
uated tax on production when it
reached the proportions of monopoly.
Mr. Hitchcock proposed such an
amendment In the caucus, ana wnen
it was rejected and his party as
sociates refused to concede to him
the right to offer it on the senate
floor he walked out of the caucus.
This amendment was defeated when
put to a vote in the senate, 41 to
30. Senator Hitchcock was tho only
democrat voting with the republi
cans in support of it.
'RAnrPRPntative Britton of Illinois
Introduced a bill in the house to ap
propriate $7,000,000 for a govern
ment armor plate plant to be
operated by tho navy department.
His jdea is to break up what he
calls the "trust" now controlling the
armor plate situation in this coun
try. , -
In a speech before the senate
September 1, in suppo of an
amendment offered to the tariff bill
proposing a 10 per cnt tax on all
trades whore the seller, did not
actually own the prfiporty sold.
Senator Cummins of Iowa denounced
i . " "
i
IN FOR REPAIRS
(Uncle Sam's monetary machine Is now being overhauled in the Congres
sional garage.) From the Portland (Oregon) Journal.
"short selling" on the New York
stock exchange, the Chicago board of
trade and on cotton, produce anu
stock exchanges generally, as "a
menace that threatens the industrial
strength of the country." Ho as
serted that the old Louisiana lottery
was a "pink tea compared with this
orgy of vice."
The house judiciary committee
unanimously decided to recommend
that a thorough investigation be
made of the charges against United
States District Judge Emory Speer,
of the southern district of Georgia.
The house passed a resolution
authorizing an investigation of the
charges, and the investigation, which
will be conducted by a subcommittee
of the judiciary committee, will prob
ably not be undertaken before late
in the fall.
President Wilson has named
Henry Morgenthau to be ambassador
to Turkey, and the nbmination was
reported upon favorably by the
oonnfo Afr. Moreantbau is of Ger
man birth, but he came to this
country as a child. He Is a graduate
of the New York City college and
the Columbia law school, and has
been actively engaged in various
business enterprises of New York
city for many years. In the last
campaign he was selected as treas
urer of the democratic national committee.
Charles J. Vopicka of Chicago has
been named by President Wilson as
United States minister to the Bal
kan states. Mr. Vopicka was born In
Bohemia in 1857, and came to this
country to seek his fortune when a
penniless young boy.
50 per cent lower than the prevail
ing American prices.
Representative Kinkead of New
Jersey, by way of proving his asser
tion that American beef s sold
cheaper in Europe than in this
country, read a letter in the bouse
from Rev. J. J. Lawrence of Bing
t. trr vnrk. savinK in Eng-
land recently he bought American,
and Argentine beef at prices almost
Proposed advances of o per cent in
freight rates on all commodities, ex
cept grain and coal, will be sub
mitted to the interstate commerce
commission about the middle of next
month by the fifty-two railroadB
operating in the east. The proposed
changes will be based upon tho
present first-class rate between New
York and Chicago, ths increase being
5 per cent flat. The printed tariffs
are to be filed to meet the objections
of Commissioners Clements and
Marble to a consideration of the
proposed advances until the tariffs
were actually before the commission.
In their opinion the commission has
no authority to fix a minimum rate
and if an increase were granted be
fore the filing of tariffs the rate
fixed would be a minimum rate, be
low which the railroads could not
go legally even if they so desired.
Thfl fttrcrfiiratG exnense to the rail
roads of compiling and printing ino
new tariffs, it is said, wjll be close
to $1,000,000.
The government's September crop
report, issued September 9, shows an
enormous loss in tho prospective
corn production and indications of
the biggest wheat crop ever produced
in this country. Hot weather and
drought in a number of the principal
corn growing states in the month
ending September 1 caused a deteri
oration of corn, which experts cal
culated has resulted in the loss of
321,000,000 bushels, reducing the
corn crop estimates to 2,351,000,000
bushels. The total wheat crop is
estimated at 754,000,000 bushels.
Weather conditions during August
caused a deterioration which is esti
mated to have resulted in the loss of
14,000,000 bushels of potatoes, 35,
000,000 pounds of tobacco and 1,
000,000 tons of hay.
ducod by Representative Bnrtlott ol
Georgia, ropoallng tho law under
which five additional circuit Judges
wore appointed to fill tho new court's
bonch, wuh adopted by a vote of 181
to 78. When a similar provision
reached the sonntc In a bill In tho
Inst conirroHS the constitutionality of
abolishing the olllces of judges was
doubtod, a majority of the senators
thought It In conflict with a provision
of the constitution which gunrantecfe
ofllco to a fedoral judge during good
behavior. Tho complexion of tho
sonato slnco has been changed and
Its action on tho Bartlett amendment
will bo watched with much Interest.
An appropriation of $100,000 to pro
vldo fedoral aid for destitute Ameri
cans leaving Mexico was Includod in
tho bill at tho roquost or Secretary
Bryan.
Prcsldont Wilson appointed Colonel
Thomas II. Birch of Burlington, N.
,1., as United States minister to Por
tugal. The navy department has denied
tho published report from London
that tho United StatcB government
had placed a contract for Whitcncaa
naval torpedoes with the English
manufacturers. It was stated that
not only had no contract been placed
as alleged, but that tho navy depart
ment had no intention of placing
any such contract.
A movement is on foot to estab
lish co-operative cornmlsHiarats in
government departments. Reports
of a preliminary tryout made by em
ployees of tho Washington navy
yard showed that more than $1,125
had been saved to purchasers at the
co-operative store in tho last six
months. Tho net profit on the ven
ture, accruing to members, was -o
per cent.
Tn a letter accepting the resigna
tion of W. Cameron Forbes as governor-general
of the Philippines,
President Wilson said: "I realize
the amount of excellent work you
have done in tho islands, both as
secretary of commerce and police
and as governor-general, and I de
sire to thank you for your faithful
service."
Joaquin Mendoz, Guatemalan
minister to tho United States, has
assured Secretary of State Bryan of
that country's approval of the ad
ministration's peace plan.
Tho house passed the lletcs
Hetchy reservoir bill granting San
Francisco use of the Hetch Hetehy
basin in tho Yosemite valley to sup
plement Its present vater supply.
The senate committee on banking
and currency gave a hearing to
The urgent deficiency bill, bearing
provision for the elimination of the
commerce court, passed the house
September 9. An amendment, intro-
GONE DRY!
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