The Washington times., 1902-03-10
Representative Fowler IS
Ready to Introduce 1t
in the House.
MAINTAINS GOLD STANDARD
Prepared by Committee on Banking and
Currency to Relieve Treasury From
Constantly Recurring Danger Growing
Out of Gold Demand.

Mr.. Fowler, of New Jersey. chairman
of the Committee on Banking and Ctr
rency, will introduce into the House to-
day bill Ito maintain the gold stand
ard, provide an elastic currency, equalize
the rates of interest throughout the coun-
try, and TO further amend the national
banking laws
1t will be remembered that some weeks
ago Speaker Henderson gave dinner to
Mr. H. H. Hanna, of indianapolis, chair
man. of the Monetary Commission; mem
bers of the Committee on Banking and
Currency, and on Coinage, Weights, and
Measures, and other gentlemen interested
in financial matters. 1t is understood
that the bill drawn by Mr.. Fowler is in
tended to meet the views of the gentle
men as expressed on that occasion, and
will be supported by the commercial in
terests there represented. Mr.. Fowler,
explaining the provisions of his bill, said:
To Tighten Burden.
What we have sought to do is TO re-
lieye the Treasury OF the United States
from the constantly recurring danger
growing out of a demand for gold coin.
and transfer this obligation to the COM
merciaI interests Of the country repre-
sented by the banks.
There is another purpose in this fea-
ture of the bill, and that is to ensure
sufficient quantity of gold at all times in
the banks to prove the character of the
credits they hold. Gold being our stand
ard of value, the Government reserve
should not be interposed between the re-
serves of the banks and the banking
operations of the country.
1T should be observed that the only
way in which the Government is able to
replenish its reserve. whenever 1t be-
comes depleted, is through the sale of
bonds and the consequent imposition of
taxes upon the people, while the banking
interests of the country will always Sc
cure sufficient gold to make an ample
reserve by fixing price upon the use of
gold from day to day in raising or lower
ing the rate of interest at the points of
export.
Banknotes at Work.
THAT the present banknote system Of
the country sustains no natural relation
to the amount of work to be done is evil
dent to every careful student OF the sub
ject, for we have had during the past
years variation from $685.
coo 900 notes in 1879 to Sl25 .0OO, 900 in 1890,
to $3.50 G00. coo in 1902-proof unanswerable
that the profit or loss on Government
bonds and not the demand for bank
notes, has been the controlling factor in
the amount of banknotes in
THE relation between banknotes and
business should be as natural and actual
as the relation between checks and drafts
and commercial transactions, and 1t is be-
lieved that this most desirable end will
be attained by the present measure.
THAT there is nothing at the present
more to be desired as a means of
extending our export trade and securing
a sure foothold in the various quarters of
the earth for American production than
the right TO establish banking relations
everyone will admit. One of the main fea-
lures of the bill, therefore, is to give to
our national banks the right to estab-
!ish places of business in any of our pos
sessions or in any foreign country.
Rates Should Be Equalized.
'Tn this connection 1t is to be OBJ
served that ii is matter OF the high |
est Importance that the rates Of inter- |
est throughout the United States should |
be equalized and lowered, because If we |
hope to continue to successfully COM |
pete with the other great commercial |
nations We must have a rate OF interest |
or per centum.
THAT there is still much doubt in the |
minds of some with regard to the effect