America's Money Machine

A Measure of Expediency 4 1
to accept the Vreeland bill as a substitute for the Aldrich bill.
But the powerful Speaker of the House was no more successful in
forcing his views than the influential Senator Aldrich. Three weeks after
its introduction the Vreeland bill had been radically changed by amendments.
As the New York Times commented, "Nothing could be more admirable
than Mr. Vreeland's industry, unless it is his readiness to oblige.
Day after day he produces fresh versions of his bill. Mr. Vreeland of the
Salamanca Trust Company, Cattaraugus County, wastes no time over
objections. He simply offers a new bill."7
The Times went on to say:
Nobodyknows what the bill will be tomorrow, or even what it is today, for
that matter, for it exists as yet only in Mr. Vreeland's mind. Only two things
are sure-it will not be the Vreeland bilLunless it provides for the issue of
some large part of a hillion dollars of emergency currency, or if it does not
provide some method of getting in the currency after it is put out. The
omission ofadequate methods ofredemption is quite as characteristic ofthe
bill as its ample, not to say excessive, provision for issue. 8
The Times look occasion to charge President Roosevelt with obstruction
ofmonetary legislation. Recalling his promise at the beginning ofthe
session that Congress would enact a currency bill, it wondered whether
the declaration could have been redeemed if the President had mastered
the subject and given it the attention it deserved. "Instead," the Times
complained, "he has dragged so many red herring across the currency
trail that he must share responsibility for the fact that nothing has been
done that is worthy of respect."9
Finally, on May II after a stormy meeting lasting until midnight, during
which one of the Congressmen is reported to have shaken his fist under
the nose of the Speaker, the Republican membership agreed 128 to 16
on a currency bill that endorsed the principle ofcommercial paper as an
asset of the currency reserve. In the compromise the name "Clearing
House Association" was dropped from the bill, but the provision for note
issuing associations open to membership by any bank was retained. No
machinery was provided by which to discipline the member banks (as was
the case with the clearing houses), a defect which opponents immediately
used to advantage.
On May 14 the House passed the Vreeland bill by a vote of 184 to 145,
but when it was sent to the other House, Senator Aldrich unexpectedly
killed it. .He moved "to strike all after the enabling clause," to amend it
by substituting a new bill ofhis own draft, to refer it to the Committee