Salt Lake evening Democrat. [volume] (Salt Lake City, Utah) 1885-1887, 1886-03-09
BOWEN ON NATIONAL BANKS.
He Thinks the Government Alone
should Control the Paper
Currency.

WASHINGTON, March 8.-The morning bus
Bowen at l o'clock obtained unanimous con-
sent to address the Senate on the 'ject of
his bill $40 provide n new basis for the cir
culation of national banks"
=, The bill also gives the Secretary of the
Treasury, with the approval of the Presi-
dent, authority to suspend and resume spe-
Gle payments by the Government from time
to time, whenever in his opinion the same
will be conducive to the safety and to the
business interests of the country.
Mr.. Bowen did not claim for his bill per-
lection in details, but said the principle CON
tanned in it was sound. He would launch it
on the legislative sea, not knowing where il
might cast anchor, but with an abiding
faith that some day, he hoped before it was
too late, the wisdom of its provisions would
be appreciated. The fact that legislation on
THE SUBJECT OF OUR CURRENCY
Was necessary, he said admitted of no
doubt. Our National Banks had furnished
the best bank currency that the country ever
had, and, next to silver and gold coin and
the United States notes, the best we could
ever hope for. There was however one
defect in the system, defect of SO serious n
nature that he would rather let the whole
system go than hazard its long continuance
with that one defect remaining, rather fore
90 its many advantages than risk the disas-
tiers that confronted the country through
that one defect. That defect was the power
given by law to the banks to regulate the
volume of money. After careful inyestiga-
ton Mr.. Bowen had failed to find any rea-
sons sufficient to satisfy his mind that the
country needed National Bank notes at all.
On the contrary he was irresstibly led to
the conclusion that
THE GOVERNMENT ALONE
Should limit the paper currency of the
nation. Recalling what we had seen in the
past, MIR. Brown asked whether there was
not danger that the banks would contract
the currency, when it WAS to their interest
to do so. Would they not use the power TO
their corporate advantage, regardless of tho
disaster which might follow from one end of
the country to the otherl Could anything
be palmer than that the power to control
the circulating medium should never be
placed in the hands of any class or be CON
trolled by any special INTEREST," The power
to make or unmake the vehicle of our OK
changes should be kept precisely where our
organic law placed it. The power to expand
or contract the circulation meant the power
to reduce or increase the prices of all
property and of all labor-tho power TO pro
vide either stagnation or unhealthy activity
IN every branch of industry. If from any
cause the National Banks should suddenly
retire their circulation
CRASH WOULD FOLLOW
That would shake the country from the
center to the circumference. No set of men
having private interests of their own 10 sub
serve should be trusted with such n power,
Congress, representing the whole people,
should hold the all important power with an
undying grip. The mere statement of tho
fact that Congress had delegated the power
to Il lot OF banks was sufficient To startie and
fill with CONSERVATION the mind Of every
man who oomprehends the disastrous effect
that would follow contraction of the cur
renoy to IN extent possible under the exist
ing law. MIR. Bowen continued at consider
able length To- discuss the features of the
bill and the silver question generally.