The Savannah morning news., 1902-03-13
TIE FOWLER BILL.

THE FOWLER BILL.
The banking and currency bill,
which was introduced into the House
this week by Representative Fowler.
chairman of the House Committee on
Banking and Currency. is a rather
complicated measure. In view of the
fact that its passage win depend upon
the question as to whether or not the
people approve it, the chances are
that vote upon 1t viii not be reach
ed at this session Of Congress, because
ii will be months before they will un-
derstand II sufficiently to instruct their
representatives in regard to it.
The purposes Of the bill are four in.
number, namely, to make silver dol
lars and gold dollars interchangeable
at the treasury, to retire the green
backs gradually. to issue bank notes
based upon bank assets and a guar
antee fund and 70 grant permission to
establish branch banks.
1t is probable that of the four pur-
poses the most important are the re-
tirement of the gTeenbacks and the is
suing Of bank notes. The present
system of protecting bank notes is
safe one, but it lacks elasticity. The
present currency is far from being as
elastic as the business interests de-
mand.
With reference to the features of
the bin which deal with the retirement
Of United States notes and the issu-
amce of bank notes, Chairman Fowler
says:
should become a law it is confidently
believed that the national banks will
assume bhe current redemption in gold
coin OF $3.50 900, 900 OF United States
notes. In this event the govern
ment is asked to redeem one
half that amount. or So, 900, 900,
exchanging goid coin for the
same. These amounts taken together
make a total of $195, 000, 900, which
would leave balance of United States
notes outstanding of 1851, 600 900, an
emOunt that would be much more
than covered by the $3.50, 000. 600 of gold
coin now in the reserve fund, as il is
well Known that several millions of
these United Su9tes notes have been
lost or destroyed and will never be
presented for payment.
I'm consideration Of the obligat ton
assumed by the national banks in cur
rently redeeming the $780, 600. 900 of
United States notes in gold coin they
will have the right during the sue
ceeding five years to issue gradually
as business may require, an amount
of bank notes equal to so per cent. of
their paid-up and unimpaired capital,
provision being also made for an
emergency circulation. AS the notes
are taken out for circulation the
banks will deposit with the govern
ment guaranty fund of per cent
of the amount of the notes so issued.
The national banks will hereafter be
required to pay interest upon the gov
eminent deposits at the rate of l per
cent per fannun1.
This 5 per cent guaranty fund and
the tax upon the bank notes will be
used to protect the bank notes, and
the excess of such taxes with the in
terest on the government deposits will.
be used to pay off the United States
notes which the bank assumes to cur
rently redeem; and 1t Is confidently as
serted that the whole $3.50. 900. 900 of
United States notes which the
banks have assumed TO currently re-
deem viii be paid off in thirty years
out of the taxes collected upon circu-
lation and interest paid by the banks
upon government deposits"
There viii be no silver certificates of
a greater denomination than IS and no
bank notes of a less denomination
than $40.
The provision of the bill which di-
reefs the Secretary OF the Treasury TO
exchange gold for silver will. OF
course, have the effect of maintaining
the parity of the two kinds of dollars.
The silver bullion in the government
vaults and so many of the silver dol
lars ais may be necessary are to be
used in the coinage of subsidiary sill
yer coins.
The provision relative to branch
banks is thought by the committee to
be necessary to a satisfactory bank
ing system. Branch banks, it is be-
lieved. would greatly aid in distribut-
ing capital and lending aid to indus
trial enterprises.
This is, of course, only a brief out
line of the bill. 1t is sufficient, how
ever, to show that quite radical re-
form in our currency system is pro-
posed,