The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-11-13
Committee Appointed to Consider As
sets Currency and Branch Banks,
and Report at Next Meeting.
CURRENCY REFORM FAVORED
PRESENT SYSTEM NOT ELASTIC
ENOUGH FOR BUSINESS.
Addresses by Editor Horace White
Ex-ControlIer Charles G. Dawes
and Congressman Fowler.

NEW ORLEANS. Nov. 12.-The attitude
of the American Bankers Association to-
wards the currency question was fixed at
the session to-day. No decisive stand was
taken on the question of assets currency or
branch banking, 1t being considered unwise
to act until solution of the questions had
been evolved but provision was made for
the appointment of committee to care
fully consider the entire subject to report
at the next meeting. The same resolution
stated the associations approval of law
imparting a greater degree of elasticity to
the currency system. to make 1t responsive
to the demands of the business interests of
the country.
The discussions of those questions to-day
were very thorough and interesting. Ex-
Controller of the Currency Charles G..
Dawes, Congressman Charles N. Fowler
and Editor Horace White. of the New York
Evening Post. were the stars in the discus
sion. No two of them agreed fully, though
Mr.. White was on the side of the question
championed by Mr.. Fowler. Mr.. Dawes
made a vigorous speech against a perma-
nent system of assets currency, though he
approved the idea of an emergency cur
rency. Mr.. Frames effort TO get the con-
vention to go on record against the propo-
sition failed, his resolution was sent
back to the executive council Congress.
New York, concluded the days programme
with addresses on IAN Emergency Cur
rency."
ASSETS CURRENCY.
Mr.. White. in the course of his address.
said: LET me explain what we mean by
assets currency. This is a phrase peculiar
to our own country. Properly speaking.
all bank notes are assets currency, since
their goodness depends upon the assets of
the issuing bank. This is true of our own
national bank notes, since the bonds de-
posted in the treasury as security for
them are assets of the issuing bank. So
the distinctive feature OF assets currency,
as we use the term, is that the bank itself
holds all the assets on which the goodness
of the notes depends. instead of
depositing some part of them in
the public treasury. The reason for
lodging a portion of them in the treas
ury is to guard against loss through bad
investment, fraudulent management or rob-
berry. These banking risks exist always
and everywhere. Yet assets currency pre-
walls in all civilized countries except the
United States and that part OF Great Brit
ain called England. Ii exists in Scotland
and Ireland, as well as on the continent
of Europe. Bank notes secured by assets
are the very rare exception TO general
rule"
Mr.. White devoted much of his address
TO discussion of the Fowler bill. embody-
ing the principle Of assets currency which
was before Congress last winter. Assets
currency" said Mr.. White. "ought TO be
better than government notes, because the
assets of the banks consist OF the circu-
lating properties OF the country. II these
assets are not good nothing is good. III
they were not good the government could
not long exist. The assets of the bank are
partly cash and partly claims upon the pro-
ducers and holders OF the country's wealth
of every description. The government has
nothing but the right TO tax. and this is
effectual only in far the producing
power OF the country. in which the capital
and deposits of the banks are invested, is
profitably employed.
lone feature OF the indianapolis plan of
assets currency has not attracted the at
tention that IL deserves. Ii provides that
the government shall hold a per cent.
redemption fund for all bark notes as now;
also a per cent. guarantee fund with the
mower to replenish IL oy taxation when