The Jasper weekly courier. [volume] (Jasper, Ind.) 1858-1922, 1901-11-01

Fear OF the People That the National
Hanks VIII Not lie Able 10
survive Panic.

The protectionists and the trusts
have a new scheme to prevent a re-
duction OF the tariff by wiping out
the surplus, and as this propo sition
evidently has the approval of the
money combine il may be forced
through the coming congress. Rep
resentatiye Fowler. the Washington
Star informs us, will be the chair
man OF the banking and currency
committee Of the next house Of rep
resentatives, and he will make an ef-
fort to use the surplus TO retire a
large blocks of the greenbacks. The
retirement OF the greenbacks has al
ways been favored by the national
banks; they want complete COM
mand Of the money market for their
own notes, and they have always had
distinct dislike of the peoples
money, because they could not ex-
tract any profit or advantage from
il. The Star further informs us that:
Mr.. Fowler, who will be assisted by
other men of the same opinion as
himself, would adopt one Of two
plans. He would either cancel $780,
100000 or s1oo,o0o,o0o outright. with
out replacing the notes with any
other class OF money, or he would
take from the available cash about
S1oo,0o0,o00 in gold, which he believes
could be spared. place that amount
in the reserve fund of the treasury,
and then as like amount of United
States notes came in, cancel them
and issue gold certificates against
the additional gold placed in the re-
serve fund. The reserve fund is now
S1j0,000,000, and the addition Of $780,
100000 to the fund would put the fig
ure at S250OO0.000. Mr.. Fowler and
other advocates Of the retirement Of
greenbacks would follow this policy
until the treasury contained nothing
but gold or it's repre- sentative in the
treasury, removing the danger of the
burden Of demand obligations that
confronts the country in case of pam
les
Beyond retirement of greenbacks
or reduction of taxation there are
only two methods Of disposing of the
surplus. These are the purchase Of
bonds or the increase of the depos-
its with national banks.
The deposits already aggregate
Sos, 506.502. and this is considered
in many circles as sufficient for the
banks TO hold. 1t is the largest sum
Of government money ever held by
the banks. except from late in 1898 10
early in 1900, when the payments TO
the government from the sale Of three
per cent. bonds were placed with
banks to prevent curtailment Of
money in the business world. Not for
many years before that or since have
the holdings Of government money by
banks been nearly so large as now.
Applications for deposits are being
made right along by banks. but they
are being informed that the treasury
has no intention Of incre sing the de-
posts at this time.
| Representative Fowler and other ad-
vocates Of the retirement of the green
backs would like TO see the treasury
surplus accumulate 10 a still larger
extent than it is now doing, as they
would like opportunity to present
their ideas to congress. The amount
of United States notes outstanding
October l was $346. 6sl .016. and it is
from this sum that Mr. Fowler would
begin the process Of green back retire
uent.
This radical republican programme
= rather amusing in one thing, and
that is their great fear that the Unit
ed States treasury will not be able to
meet its demands in case OF a panic.
The great fear of the people who have
deposits in the national ba inks is that
they will be the ones who will not be
able to meet their Liabilities.
III the treasury was to call for the
Sos. 506.5o2 which has been loaned 20
the banks without interest, there
would be a panic in Wall street which
would at once extend all over the
whole country. 1t is only few days
ago that these same banks were call
ing on the treasury to relieve them by
purchasing bonds mt the enormous
premiums Of 40 per cent If this is nee
essary in the prosperous times they
claim exist. what will become nee
esary to DO when hard times come
again?
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