The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-02-02
If the Former Is Defeated Enough Re-
publicans May Join the Democrats
to Pass the Padgett Bill.
QUAY EMULATEs THE SPHINX
MAKES NO CONFIDANTS REGARDING
HIS STATEHOOD PLANS.
There Is Every Indication, HOwver,
that He Will Attach the Bills as q
Rider to the Appropriations.
taf Correspondence of the Journal.

STAFF Correspondence of the Journal.
WASHINGTON, Feb. 1.-The Fowler cur
rency bill will on Wednesday of this week
come up for consideration in the House.
1t has been the subject Of considerable
speculation since it was first laid before
the committee and it's fate is problemati
cal. 1t will have the support Of the great
majority of Republicans, and it's merits
will be eoquently set forth by some Of
the ablest representatives of that party.
The opposition is not large, but what it
lacks in numbers 1t will make up in ag-
gressiveness, and the bill will be fiercely
fought to a finish If all the Democrats
should join with the opposition it would
probably be defeated, for the Republican
majority is only forty and a change of
twenty would kill it. Mr.. Fowler. how
ever, is a resourceful and energetic lead
er, and his friends believe he will so i'm
press the House with the great advantages
which will follow the enactment Of such a
law that it will give him practically
solid Republican support.
The present currency bill is a very modest
measure of financial reform compared with
that which came out of the banking COM
mittee last spring. The bill last named
radically changed the existing system. 1t
contained provisions for credit currency,
for branch banks for additional silver COIN
age, for the exchange of gold and silver
and for greenback retirement. 1t was an
ideal bill from an economic standpoint, but
it sought to accomplish too much at one
time and its fate was sealed from the be-
ginning. The present bill is limited to
single proposition. 1t permits national
hon he 10
to % per cent of their capital, the notes
to be taxed one-half per cent. per annum
and to be safeguarded by guaranty fund
equal to per cent. of the notes outstand-
ing. The committee on rules has made 1t
a special order for Wednesday, and the
discussion may last several days.
The most interesting development of the
last week, so far as financial iegislation is
concerned, was the introduction by Repre-
sentative Padgett, Tennessee Democrat,
of bill also permitting national banks TO
issue credit currency notes. This is more
-far-reaching than the Fowler bill, and
from the standpoint of the currency re-
formers better bill to pass 1t is be-
lieved that many Republicans will support
the Padgett bill If the Fowler Is so amend
ed as to convert the note issues into
pure emergency circulation. That is to
say, a banknote issue that is so heavily
taxed as to be issued only in times of
financial stress and promptly retired when
normal conditions again exist.
Mr.. Fowler does not believe in an emerg
ency currency. AS he expresses it, What
the country needs is not a currency for
emergencies, but a currency that will pre-
vent emergencies'-in other words, cur
Tency that is so elastic that 1T will
pand and contract with the volume Of bus
iness, perfectly adjusted to the demands
of commerce and not depending for its vol
ume on the price of government bonds. A
currency that was taxed 4 or 5 per cent.
(and any emergency currency would be
taxed, would. in his opinion, defeat the
object for which it was issued. For the
banker would add the amount of the tax to
the interest charge, thus lettering the nat
ural operations Of commerce at the very
time when it demanded the greatest free
dom. IT, therefore, the advocates of the
Fowler bill would rather suffer the defeat
of that measure than to pass it through
the House with an almost prohibitory tax
Ii is not unlikely that many of them might
vote for the Padgett bill as a substitute.
The Padgett bill. it should be explained,
permits national banks having a bond-se
cured circulation equal to 50 per cent of
their capital to issue so per cent. addi-
tional of credit currency notes. The first
20 per cent. of these issues are taxed / per
cent; the next Is per cent. per cent, and
the last 10 per cent. per cent. per an
mum. The guaranty fund in the Padgett
bill is also > per cent. of the note issues
and the tax on circulation is to be added
to it as an additional measure of safety
for the notes of failed banks. When the
proceeds of this tax equal s5.O0O,000 the tax
on the first two issues of credit currency
notes will be cut in halves reducing it to
one-half and one and one-half per cent
per annum, respectively.
A good many Republicans are speculating
as to the political results that might follow
the passage of the Padgett bill in the House
by majority of Democratic votes added to
score more of Republican votes. 1t
is contended that if the Democratic plat
| form i'm 1904 should contain plank for cred
il currency ii would be an earnest to the
country that the party had turned its
| back on free silver and had taken it's stand
| for a financial policy that has the support
of the gold Democrats and the great ma
| jority of Republican business men. II is not
doubted that such platform pledge would
/ strengthen the party in the Eastern and
middle Western States and that il might
be the means of winning for it a sufficient
| number of electoral votes to elect the next
| President. G. A. G..