Evening star. [volume] (Washington, D.C.) 1854-1972, 1902-04-05
AN ELASTIC CURRENCY
One Object of the Fowler
Bill.
FAV0REDRYG0MMITTEE
FAVOREDBYCOMMITTEE
ORDERED TO BE REPORTED TC
THE HOUSE.
Statement Concerning Its Provisions
by Its Author-Will Be Push
ed for Consideration.

The House committee on banking and cur
rcncy today voted to report the bill Ito
maintain the gold standard, provide at
elastic currency. equalize the rates of in
terest throughout the country and further
amend the national bank laws"
The details of the measure were printed
in The Star when Mr.. Fowler introduced
T.. and since then the changes made have
no. affected any of the principles of the
bill II brings together many plans which
have heretofore been urged separately A
division of banking and currency is created
IN the Treasury Department. with a board
of control of three members, superseding
the present controller of the currency. The
methods by which banks may take out cir
cu1atiOn are provided: the parity of the
silver dollar with gold is established; pro-
vision for the esta Enlistment of branch ma
tiOnal banks is made: silver bullion in the
treasury is to be coined into subsidiary sill
Yer; guaranty funds are provided to pro-
tect against insolvent banks.
Chairman Fowler's Statement.
In describing the bill for The Star today
Chairman Fowler said that it was purely a
committee measure, was supported by all
of the republicans on the committee and
would be pushed for consideration as the
important financial legislation of the pres
ent Congress. In discussing the measure
somewhat in detail Mr.. Fowler said:
The difficulties under which the country
Is labOring are twO-fOld. The first has to
do with the financial interests of the gov
ernment, the other the credit system of
the country There are now outstanding
In one form or another about 81 20o, ,OOO, 900
In obligations for which the government
fs responsible, namely, S3i6, ,OUD.(aD in green
backs: S250t0Oo in national bank notes;
S3G".Oo0 in treasury notes; $3.50 200 in
silver dollars, or certificates representing
them.
The purpose of the bill is to relieve the
treasury from the burden of carrying all or
these obligations except the silver. which
We hope 10 completely distribute
throughout the country by having no larger
silver certificate than So as to relieve the
treasury form any apprehension whatever
IN that connection.
Burden Put on the Banks.
''The banks are to assume the current
redemption of $780, 600 of the United
States notes. the government at the same
time paying half of that amount, or $685.
100000. making a total of s195 ,OO0, ,OOO
which leaves a balance outstanding of
Slj1 100000, which Is much more than COW
cred by the $50 600 in the issue and
redemption division. as it is well known
that several millions of greenbacks have
been lost OF destroyed
More Subsidiary Coin.
The bill proposes also to coin all of the
bullion between the $50. 600 600 Of treasury
notes into subsidiary con and the redemp-
ton OF the bank notes issued under the
bill is to be in gold coin. From this it will
be readily seen that the government will
not be responsible for any of the obligations
referred 70 except the various forms of sill
yer, whose preoCcupation in the perform
ance of the trade business of the country
Will preclude its presentation in any such
quantity as to become burden on the
treasury.
Nor will there be any disposition after
the passage of the bill to discriminate
against silver in any form or to present it
instead of other forms of money at the
treasury for redemption because the hill
provides for the exchange of gold coin for
silver dollars. thus redeeming every pledge
the government has now outstanding in the
form of fiat money.
An Elastic Currency.
THE second important purpose of the
8 measure has to do with bank currency,
which today Is put out retired according
as there may or may not be a profit in
holding bonds. The bill establishes a sys-
tenn OF credit currency such as they have
IN France, Germany. Great Britain and
Canada, currency which will respond to
the demands of trade precisely as checks
and drafts are retired. Such a currency
precludes the possibility of a currencv
panic such as We are now frequently hav-
ing.
Another important feature of the bill
bears directly on the question of currency
and It's distribution-that is the right of a
bank 10 have as many places of business
as II may desire. precisely like any other
commercial business. This will euuaIize
the distribution of money over the country.
as the interest will be the same as in the
large cities"