Omaha daily bee., 1902-06-22
OPPOSE MEASURE
Objects to Terms Of Fowler Bill Pending in
House Of Representatives.
WILL WEAKEN SECURITY FOR CIRCULATION
Issue Of Bills Against Anything but
Government Bonds
as Unsafe by Nebraska
F~inanciers

Bankers Of Nebraska are devoting con-
siderable attention to the terms Of the
Fowler bill now pending in congress. They
do not believe that It will pass at the
present session, but are expecting It to be
pushed at the next session, and for this
reason they are studying it's provisions,
so that they can take a stand either for or
against the bill.
AS a general thing the bankers Of this
state do not favor the measure, and sew
eral Of the bankers wrote to Nebraska
representatives to oppose the bill when 1t
was before the house a few weeks ago.
The principal reason for the opposition OF
the western bankers to the Fowler bill
Is given by an Omaha banker as follows;
The Industrial world has lately expert
enced a new movement. Napoleons OF
finance have taken seventeen tottering con.
Germs, have combined them into one COM
pany and have issued stock to the value
Of four times the amount for which all the
concerns could have been bought before
they were combined. The New York bank
ers are loaded down with these securities,
which they bought as a speculation. The
western banks are free from this form Of
paper and will not invest. They are hold
ing their money and the New Workers can
not get hold Of 1t with the trust securities
they have to offer. Now. the New Workers
think that II they are given the right
to purchase banks In the west, they can
Use the money of the western depositor
to help them carry the awful load Of Sc
curity which they have piled up. The west
ern banker does not want this for he believes
that the securities are not as good as other
forms Of investment, and has shown this
belief by keeping his money out OF them.
How II Affects Circulation.
Again, the bill is wrong In the opinion
Of the western banker from the fact that
1t will permit banks to issue bills for
circulation based upon securities other than
United States bonds. At the present time
our bank circulation is absolutely secure.
There Is a way specified by which the
banks can increase their circulation, but
they have to invest in securities which
are absolutely good. Under the terms of
the Fowler bill they can invest the money
Of the depositor In almost any form Of
security, and against that security they
can Issue bills for circulation. Then the
bills thus issued become a first lien on the
securities pledged, and the depositor, whose
money has been invested in the securities
must wait for a dividend from a defunct
bank until his money has been paid to the
man who holds the bill OF the bank, based
upon that security. II that is safe banking,
l have learned little OF the business during
all Of the years l have spent in It,"
other points have, been urged against the
bill and few II any of the bankers Of the
state have favored any Of the provisions
Of the measure, except that providing for
the retirement Of the greenbacks. That
clause meets with general approval, al
though a large number of the bankers say
that there is no Immediate necessity for
such action. The measure will probably
be one Of the principal things discussed
at the coming session of the Nebraska
Bankers association and a paper on the
subject may be presented by some mem
her,